Microsoft announced Tuesday in Seoul that it would develop a version of its software Windows Automotive for Hyundai-Kia Automotive Group.

Microsoft already has a deal with Ford Motor for its Sync system, which uses voice activation technology to operate cell phones and play digital music.

With Ford and Hyundai as customers, Microsoft’s software could potentially be put into more than 8 million vehicles worldwide each year. Its competitors include OnStar, from General Motors; Johnson Controls; and QNX Software Systems, from Harman worldly. Systems based on Microsoft Automotive are available in Fiat Group vehicles in Europe and South America, as well as in 12 Ford models in North America.

Windows Automotive will first seem in Hyundai vehicles in North America in 2010, said Martin Thall, general manager of Microsoft’s automotive business unit. Subsequent versions will give drivers voice control by navigation systems and video entertainment, in addition to cell phones and digital music players.

The Hyundai deal suggests that

Microsoft may be achieving the critical mass it needs to inspire other companies to create hyperlinks to its auto software, in much the same way that third parties create software applications to run on Windows-based computers.

With millions of potential users, Global Positioning System navigation device makers like TomTom and Garmin may start developing software for their products specifically for Ford and Hyundai.

“Microsoft is certainly raising their level of involvement and their competitiveness in the automotive industry,” said Phil Magney, an analyst at Telematics Research Group. “It makes it one of the top operating systems that automakers must consider in developing their infotainment systems.”

The financial terms of the deal were not announced, but Magney noted that revenue from the automotive systems was minuscule compared with other areas of Microsoft’s business.

So the goal of becoming the software standard for cars is largely strategic, creating new ways to align…

Original post by Top Tech News