{"id":57135,"date":"2013-09-10T17:37:33","date_gmt":"2013-09-10T21:37:33","guid":{"rendered":"http:\/\/rbach.net\/blog\/index.php\/"},"modified":"2021-08-01T11:52:41","modified_gmt":"2021-08-01T15:52:41","slug":"data-from-connected-cars-worth-1400-annually","status":"publish","type":"post","link":"https:\/\/rbach.net\/index.php\/data-from-connected-cars-worth-1400-annually\/","title":{"rendered":"Is Connected Car Data Worth $1,400 Annually?"},"content":{"rendered":"<p><a href=\"https:\/\/web.archive.org\/web\/20210518162207\/https:\/\/gigaom.com\/2013\/04\/17\/can-nvidia-create-a-connected-car-system-that-never-becomes-obsolete\/\" target=\"_blank\" rel=\"noopener noreferrer\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignleft wp-image-107873\" title=\"Is Connected Car Data Worth $1,400 Annually?\" src=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/connectedcar-logo-3.png?resize=135%2C90&#038;ssl=1\" alt=\"Is Connected Car Data Worth $1,400 Annually?\" width=\"135\" height=\"90\" srcset=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/connectedcar-logo-3.png?resize=150%2C100&amp;ssl=1 150w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/connectedcar-logo-3.png?resize=75%2C50&amp;ssl=1 75w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/connectedcar-logo-3.png?w=600&amp;ssl=1 600w\" sizes=\"auto, (max-width: 135px) 100vw, 135px\" \/><\/a><a title=\"Posts by Michael Strong\" href=\"http:\/\/web.archive.org\/web\/20130910221027\/http:\/\/www.thedetroitbureau.com\/author\/michael\/\" target=\"_blank\" rel=\"author noopener noreferrer\">Michael Strong<\/a> at <em><a title=\"TheDetroitBureau.com\" href=\"http:\/\/www.thedetroitbureau.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">TheDetroitBureau.com<\/a><\/em> reports that\u00a0<a title=\"Continental AG\" href=\"https:\/\/www.conti-online.com\/www\/automotive_de_en\/\" target=\"_blank\" rel=\"homepage noopener noreferrer\">Continental AG<\/a> and\u00a0<a href=\"http:\/\/www.cisco.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Cisco<\/a> (<a href=\"https:\/\/www.tradingview.com\/symbols\/NASDAQ-CSCO\/\" target=\"_blank\" rel=\"noopener noreferrer\">CSCO<\/a>) recently demoed a highly <a title=\"Taking the Internet to the Road\" href=\"http:\/\/www.cisco.com\/web\/strategy\/transportation\/passenger.html\" target=\"_blank\" rel=\"noopener noreferrer\">connected<\/a> car using the internet to improve vehicle safety and infotainment options at the recent <a title=\"Center for Automotive Research Management Briefing Seminars\" href=\"https:\/\/web.archive.org\/web\/20170126095608\/http:\/\/www.cargroup.org\/?module=Page&amp;sID=management-briefing-seminars\" target=\"_blank\" rel=\"noopener noreferrer\">Center for Automotive Research Management Briefing Seminars<\/a> in Traverse City, MI.<\/p>\n<p><a href=\"https:\/\/www.cisco.com\/\" target=\"_blank\" rel=\"noopener noreferrer\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-107875\" title=\"Cisco logo\" src=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/cisco_logo-7.jpg?resize=100%2C61&#038;ssl=1\" alt=\"Cisco logo\" width=\"100\" height=\"61\" srcset=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/cisco_logo-7.jpg?resize=75%2C46&amp;ssl=1 75w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/cisco_logo-7.jpg?w=136&amp;ssl=1 136w\" sizes=\"auto, (max-width: 100px) 100vw, 100px\" \/><\/a>The firms believe they&#8217;ve produced a connected car that provides a balance between giving consumers a safe, connected driving experience while providing companies with a chance to offer services that enhance the driving experience: for a price.<\/p>\n<p>According to the article, the companies involved in bringing the Internet to cars collect an enormous amount of information about drivers. This presents a variety of challenges when it comes to privacy, who owns the information, how can or should it be used and what\u2019s it worth?<\/p>\n<p><a href=\"http:\/\/www.forbes.com\/pictures\/efkk45lmfj\/salary-150000-to-160000\/\" target=\"_blank\" rel=\"noopener noreferrer\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-107877\" title=\"data generated by a connected car is worth about $1,400 a year.\" src=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/money.jpg?resize=100%2C70&#038;ssl=1\" alt=\"data generated by a connected car is worth about $1,400 a year.\" width=\"100\" height=\"70\" srcset=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/money.jpg?resize=75%2C53&amp;ssl=1 75w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/money.jpg?resize=150%2C105&amp;ssl=1 150w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/money.jpg?resize=768%2C538&amp;ssl=1 768w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/money.jpg?w=857&amp;ssl=1 857w\" sizes=\"auto, (max-width: 100px) 100vw, 100px\" \/><\/a>While privacy and data ownership issues are still up in the air thanks to the U.S. government. Andreas Mai, director of product management at Cisco, believes data generated by a connected car is worth about $1,400 a year.\u00a0 He breaks it down this way:<\/p>\n<ul>\n<li>Drivers can save $550 through better fuel economy, less time stuck in traffic, lower insurance rates, etc.<\/li>\n<li>Society can save $420 by employing car platoons to speed up traffic and increase a road\u2019s capacity.<\/li>\n<li>Service providers can earn $150 by providing traffic guidance, navigation, parking, emergency services, etc.<\/li>\n<li>Automakers can save $300 in lower warranty costs, profitable apps, etc.<\/li>\n<\/ul>\n<p>The key, according to the article, is to maximize the information that can be collected (<em>and re-sold<\/em>) is convincing drivers that they get a tangible benefit from releasing the data, such as shorter commutes or lower insurance rates (<em>thanks <a title=\"Meet Progressive's Flo: Standup Comic Stephanie Courtney\" href=\"http:\/\/www.businessinsider.com\/meet-progressives-flo-standup-comic-stephanie-courtney-2012-2?op=1\" target=\"_blank\" rel=\"noopener noreferrer\">Flo<\/a><\/em>). According to a survey by Cisco, 74% of drivers were willing to share vehicle information. However, who or what owns that information still needs to be sorted out, he said. They must balance all of those things against the driver\u2019s wants and needs: connectivity, infotainment, and cutting-edge safety features.<\/p>\n<p><a href=\"http:\/\/www.internetretailer.com\/2013\/03\/25\/app-connected-cars-will-drive-new-advertising-opportunities\" target=\"_blank\" rel=\"noopener noreferrer\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-107879\" title=\"Cars switch between 3G, 4G, WiFi, and DSRC on the go\" src=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/smartphonecar-1.jpg?resize=90%2C90&#038;ssl=1\" alt=\"Cars switch between 3G, 4G, WiFi, and DSRC on the go\" width=\"90\" height=\"90\" srcset=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/smartphonecar-1.jpg?resize=75%2C75&amp;ssl=1 75w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/smartphonecar-1.jpg?resize=150%2C150&amp;ssl=1 150w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/smartphonecar-1.jpg?w=280&amp;ssl=1 280w\" sizes=\"auto, (max-width: 90px) 100vw, 90px\" \/><\/a>The firms believe they\u2019ve produced a connected car that provides a balance between giving consumers a safe, connected driving experience while providing companies with a chance to offer services that enhance the driving experience: for a price.<\/p>\n<p>Continental and Cisco teamed up to keep the bits flying. As a vehicle moves it needs to prioritize the critical needs of drivers and passengers for network connectivity, according to the article. <a title=\"Digital Trends\" href=\"http:\/\/www.digitaltrends.com\/\" target=\"_blank\" rel=\"noopener noreferrer\"><em>Digital Trends<\/em><\/a> <a title=\"3G? 4G? V2V? Cloud-connected concept car set for debut\" href=\"http:\/\/www.digitaltrends.com\/mobile\/3g-4g-v2v-cloud-connected-concept-car-set-for-debut\/\" target=\"_blank\" rel=\"noopener noreferrer\">explains<\/a> that Continental will supply the hardware and Cisco will provide the software. The car can switch between 3G, 4G, WiFi, and Dedicated Short Range Communication (<a href=\"http:\/\/www.its.dot.gov\/DSRC\/\" target=\"_blank\" rel=\"noopener noreferrer\">DSRC<\/a>) on the go, depending on service quality and cost to the customer. DSRC system is part of the emerging <a href=\"http:\/\/www.digitaltrends.com\/cars\/v2v-test\/\">vehicle-to-vehicle<\/a> (<a href=\"http:\/\/www.digitaltrends.com\/cars\/car-hive-mind-will-an-ntsb-v2v-mandate-make-roads-safer\/\">V2V<\/a>) technology system that allows cars to communicate with each other directly \u2013 and autonomously.<\/p>\n<p>A Cisco software router loaded in Continental hardware performs the network switching. The router sends signals first to a Cisco-managed \u201cConnected Car Cloud,\u201d which then relays information to whatever network appears optimal at the moment.<\/p>\n<p style=\"text-align: center;\">\u00a0<a href=\"http:\/\/www.motorauthority.com\/news\/1086137_continental-and-cisco-team-up-to-create-connected-car-concept\" target=\"_blank\" rel=\"noopener noreferrer\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-107881\" title=\"Connected Car Concept\" src=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/continental-cisco-connected-car-concept.jpg?resize=400%2C222&#038;ssl=1\" alt=\"Connected Car Concept\" width=\"400\" height=\"222\" srcset=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/continental-cisco-connected-car-concept.jpg?resize=150%2C83&amp;ssl=1 150w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/continental-cisco-connected-car-concept.jpg?resize=75%2C42&amp;ssl=1 75w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/continental-cisco-connected-car-concept.jpg?w=640&amp;ssl=1 640w\" sizes=\"auto, (max-width: 400px) 100vw, 400px\" \/><\/a><\/p>\n<p>The Cisco on-board software system can seamlessly switch between available 3G, 4G, and other wireless networks based on cost and quality of service preferences. \u201c<em>Connected vehicles are opening up a vast field of opportunities for services to make driving safer, more efficient, and more comfortable,<\/em>\u201d said Ralf Lenninger, head of innovation and strategy, Continental\u2019s Interior Division. \u201c<em>This is why we are looking at ways to connect the moving vehicle in a highly secure, fast, and reliable way.<\/em><\/p>\n<p><a href=\"https:\/\/web.archive.org\/web\/20190519112552\/https:\/\/computerrepairservicespro.com\/wireless-internet-security\/\" target=\"_blank\" rel=\"noopener noreferrer\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-107883\" title=\"the same amount of network security that is available at home\" src=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/secure_wireless_icon.png?resize=92%2C100&#038;ssl=1\" alt=\"the same amount of network security that is available at home\" width=\"92\" height=\"100\" srcset=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/secure_wireless_icon.png?resize=137%2C150&amp;ssl=1 137w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/secure_wireless_icon.png?resize=69%2C75&amp;ssl=1 69w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/secure_wireless_icon.png?w=518&amp;ssl=1 518w\" sizes=\"auto, (max-width: 92px) 100vw, 92px\" \/><\/a>The Cisco and Continental proof-of-concept connected car show how auto manufactures can provide the same amount of network security that is available at home (<em>oh NO!<\/em>) or in the office. Cisco provides one highly secure software gateway that delivers Cisco\u2019s core networking capabilities and optimizes multiple communication links and mobility services to and from the vehicle. Security against cyber attacks will become more important as more vehicles include connected functions.<\/p>\n<p><em><strong>rb-<\/strong><\/em><\/p>\n<p><em>I recently covered Ford&#8217;s efforts to understand connected cars by studying the commlinks of space-based robots <a title=\"Ford Studies Space Bots for Better Cars\" href=\"http:\/\/wp.me\/p2wgaW-eR7\" target=\"_blank\" rel=\"noopener noreferrer\">here<\/a>.<\/em><\/p>\n<p><em>The savings claims seem suspicious to me. The \u201clower insurance costs\u201d are just cash savings. <del>Oh, yeah Walmart is still in business.<\/del> What is going to be the costs to the drivers after the insurance companies get their Hadoop big data analytics on the data from the magic boxes they are installing? Will they use the data you provided them to change the rules on your policy to raise your rates? It only takes a small leap to think about what the NSA could do with the data. <\/em><\/p>\n<p><em>Just in case someone at Cisco or Ford or anybody else is reading this, here are some suggestions from Veracode to secure connected cars..\u00a0<\/em><\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/info.veracode.com\/vast-soss.html\" target=\"_blank\" rel=\"noopener noreferrer\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-107897\" title=\"Versacode Connected Car infographic\" src=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/connected-vehicles-veracode.jpg?resize=400%2C3825&#038;ssl=1\" alt=\"Versacode Connected Car infographic\" width=\"400\" height=\"3825\" srcset=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/connected-vehicles-veracode.jpg?w=412&amp;ssl=1 412w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/connected-vehicles-veracode.jpg?resize=107%2C1024&amp;ssl=1 107w\" sizes=\"auto, (max-width: 400px) 100vw, 400px\" \/><\/a><\/p>\n<p>Infographic by <a href=\"http:\/\/www.veracode.com\/\">Veracode Application Security<\/a><\/p>\n<p>&nbsp;<\/p>\n<h6>Related articles<\/h6>\n<ul>\n<li><a href=\"https:\/\/web.archive.org\/web\/20220125082845\/https:\/\/gigaom.com\/2013\/08\/06\/ciscos-remedy-for-connected-car-security-treat-the-car-like-an-enterprise\/\" target=\"_blank\" rel=\"noopener noreferrer\">Cisco&#8217;s remedy for connected car security: Treat the car like an enterprise<\/a> (gigaom.com)<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><em><a title=\"Ralph Bach\" href=\"https:\/\/rbach.net\/index.php\/new-resume\/\" target=\"_blank\" rel=\"noopener noreferrer\">Ralph Bach<\/a>\u00a0has been in IT long enough to know better and has blogged from his\u00a0<a title=\"Bach Seat\" href=\"https:\/\/rbach.net\/\" target=\"_blank\" rel=\"noopener noreferrer\">Bach Seat<\/a> about IT, careers, and anything else that catches his attention since 2005. You can follow him on <a class=\"broken_link\" href=\"http:\/\/www.linkedin.com\/in\/rb48334\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">LinkedIn<\/a>,\u00a0<a href=\"https:\/\/www.facebook.com\/ralph.bach.14\" target=\"_blank\" rel=\"noopener noreferrer\">Facebook<\/a>,\u00a0and\u00a0<a href=\"https:\/\/twitter.com\/rbach48334\" target=\"_blank\" rel=\"noopener noreferrer\">Twitter<\/a>. Email the Bach Seat\u00a0<a href=\"mailto:\/\/bach.seat@gmail.com\" target=\"_blank\" rel=\"noopener noreferrer\">here<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A connected car can collect tons of info about drivers leaving privacy &#038; data ownership issues up in the air for corps and feds to exploit.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24],"tags":[3044,494,247,1935,487,604,944,1393,19,951,185],"class_list":["post-57135","post","type-post","status-publish","format-standard","hentry","category-cars","tag-3044","tag-automobile","tag-cisco","tag-cloud","tag-csco","tag-insurance","tag-iot","tag-m2m","tag-michigan","tag-pii","tag-privacy"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/posts\/57135","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/comments?post=57135"}],"version-history":[{"count":7,"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/posts\/57135\/revisions"}],"predecessor-version":[{"id":118989,"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/posts\/57135\/revisions\/118989"}],"wp:attachment":[{"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/media?parent=57135"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/categories?post=57135"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/tags?post=57135"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}