Why Today’s Automobile Industry Looks A Lot Like IBM in 1985


Editor’s note: Tien Tzuo is the co-founder and CEO of Zuora.

With the number of mobile phone subscriptions shortly expected to exceed the total global population, what is the next great connected device going to look like? Hint: It’ll have four wheels.

Gartner predicts that there will be 250 million connected cars on the road by 2020. That means one in every three cars on the road will be connected. By then, digital diagnostics, infotainment channels and enhanced navigation systems are expected to constitute a $270 billion industry, up from $47 billion today.

The only problem is that, now, the automobileindustry is looking a lotlikeIBM did in 1985.

[tc_writerquote align=”left”]The automobile industry seems to have effectively ceded their dashboards to Google and Apple.[/tc_writerquote]

In 1985, Big Blue employed over 400K people (five times the size of Apple today). Digital Equipment, its nearest rival…

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