The News: Qualcomm and Ferrari announced a strategic technology collaboration that will drive Ferrari’s digital transformation forward. Qualcomm will provide its Snapdragon Digital Chassis suite for future Ferrari vehicles and will be the Premium Partner for the Scuderia Ferrari Formula One team. The Snapdragon Digital Chassis includes Snapdragon Ride, Snapdragon Cockpit, and Snapdragon Auto Connectivity. Read the full announcement on Qualcomm’s blog.
Qualcomm and Ferrari Enter Strategic Collaboration
Analyst Take: Qualcomm continues its foray into the automotive space with this latest partnership with Ferrari. While there aren’t many details on what features from the Snapdragon Digital Chassis will be included in future Ferrari vehicles or how Qualcomm technology will be used for the Formula One, partnering with one of the oldest and most successful racing teams as well as one of the most reputable car manufacturers will greatly benefit Qualcomm. As a fan of both F1 and Ferrari, I admittedly enjoy these types of collaborations.
What We Do Know
Back in November it was reported that Ferrari was searching for a technology partner to help bring the automotive manufacturer into the next phase of its digital transformation. The company was seeking a partnership to help develop technologies and lead to the next generation of cars. Qualcomm, and its rapidly expanding roadmap of a modular digital chassis definitely has the right approach to meet those requirements.
The announcement states that Qualcomm will be working with Ferrari to “Design, develop, and integrate Ferrari’s digital cockpits” so we can assume that Qualcomm’s Snapdragon Ride platform will be the base on which future infotainment systems are built.
As for Formula One, Qualcomm will be a Premium Partner for the Scuderia Ferrari team at the beginning of the next race season. Qualcomm joins the ranks of other technology companies including Oracle, HPE, Cisco, Dell, and Splunk who have headed to the race track for various partnerships.
Qualcomm Firmly in the Driver’s Seat
In the last six months Qualcomm has made several strategic partnerships with major automotive manufacturers such as Volvo, Renault, BMW, and GM. These have created the underpinnings of a $13 billion automotive pipeline that will likely provide exponential growth for the tech giant over the next decade or so as the automotive space continues to evolve. Cristiano Amon hasn’t finished his first full year as CEO yet and it’s evident that he is steering the company in the right direction.
The modular approach that Qualcomm is taking to its driving platform will continue to be an attractive offering to more automotive manufacturers moving forward, I’m sure. Qualcomm has had explosive growth in the market in the last quarter, becoming one of the mega caps in tech. The partnership will likely continue to please investors and shareholders. We continue to be impressed by Qualcomm’s evolution in the automotive space in such a short period of time. As we see it, It’s only a matter of time before Qualcomm becomes a household name in many of our cars just like it did in our mobile devices—and even if it doesn’t gain household name status, its technology may be as prevalent in vehicles as it is in today’s smartphones.
Disclosure: Futurum Research is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.
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Daniel Newman is the Principal Analyst of Futurum Research and the CEO of Broadsuite Media Group. Living his life at the intersection of people and technology, Daniel works with the world’s largest technology brands exploring Digital Transformation and how it is influencing the enterprise. Read Full Bio