Frost & Sullivan Accolade for IBM Global Telematics Solutions' Innovative Technology

LONDON--May 3, 20051, 2005--IBM Global Telematics Solutions is the recipient of the Frost & Sullivan 2005 Automotive Technology of the Year Award. A pioneer in developing innovative technology solutions for the automotive industry, the company is recognized for the successful design and introduction of the open standards-based OSGi software platform for the commercial vehicle telematics sector.

Open standards are vital to promoting greater uptake of automotive telematics. In this context, IBM Global Telematics' novel OSGI software platform built for DaimlerChrysler's commercial vehicle telematics subsidiary FleetBoard GmbH represents a groundbreaking development.

"The OSGi platform provides the telematics industry with the ability to leverage cost for both suppliers and end users by creating open standards across different hardware platforms," explains Frost & Sullivan Research Analyst Praveen Chandrasekar. "It also allows the industry to focus on software development and therefore concentrate on maximizing the benefits of existing hardware."

For many end users, particularly commercial vehicle users, the lack of common and open standards, has proved to be a hindrance. The push towards improved fleet productivity has compelled frequent and costly hardware and software upgrades of telematics systems.

"Positioned to become the industry standard, IBM's telematics solution has the potential to form the basis of the next generation of telematics software by minimizing the need for hardware upgrades while allowing greater flexibility for software upgrades," comments Mr. Chandrasekar. "The impact on costs is likely to be such that telematics operating companies such as FleetBoard are able to offer software upgrades without changing the hardware, as a key selling point for their service."

Presently, the telematics industry has primarily focused on hardware despite a clear need to move towards software and service. IBM's novel software is likely to encourage telematics suppliers to focus on enhanced quality software capable of functioning independent of the hardware platform. Thereby, it is expected to overcome the need for periodic investments in hardware, which is the most significant restraint to the adoption of automotive telematics.

In keeping with its established capabilities as an innovator, IBM has delivered pioneering technologies in the automotive field over the last decade. Recently, the company provided its speech recognition software for Honda Motor Company's new hands-free navigation system. With the release of its commercial vehicle software platform, IBM has boosted the profile of the OSGi platform across the industry.

IBM's strategy of using the OSGi platform as a forum for demonstrating its innovation has ensured customer awareness of the software's benefits. Members such as the BMW Group and Alpine Electronics (Europe) GmbH are set to help IBM promote the technology to their customers. IBM's image as a leading innovator in software development is also likely to accelerate the acceptance of this revolutionary technology in the market.

"In particular, Frost & Sullivan commends IBM Global Telematics Solutions for the fact that its new technology has the potential to be seamlessly introduced and sold to the end user because IBM has focused on facilitating the use of all the existing telematics systems rather than developing a new system and thereby has helped in rationalizing costs," concludes Mr. Chandrasekar.

About IBM

IBM is the world's largest information-technology company and a leader in helping businesses and organizations innovate. IBM and IBM Business Partners offer a wide range of services, solutions and technologies that enable customers, large and small, to take full advantage of on demand business. For more information about IBM, visit http://www.ibm.com/ondemand.

About Frost & Sullivan

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit www.frost.com.

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