As you may have never heard a thing about one of the participants of this deal – Denso, I will cover their field of interest on the global market to signify the importance of the deal for both sides.
Denso was created in Japan after the WWII, as so many other companies – for example both Sony and Panasonic corporations were created about that same time. At these days, many wartime specialists in electronics, physics and other advanced science areas have lost their jobs, following the crash of the Japan war machine. These highly trained professionals were seeking new field of development, and the one chosen by Denso was the automotive advanced technologies.
Denso’s prime purpose is researching and putting into mass production of advanced car and truck parts and whole systems.
You have never heard of Denso, because it is sub manufacturer. But it delivers parts and whole systems to many automotive companies. They have very large research and development team, and as many as 120000 employees in 33 countries around the world. You may be surprised by Denso’s financial dimensions also – its net sales for the last year are about 32 billion US dollars. This is in no means little or insignificant company, even standing next to the Microsoft corporation.
Microsoft is well known to you as software developer, but you may not know, that their R&D teams are focused on many other things. Besides developing of the Windows series of operating systems, they create games, research mathematical and practical aspects of artificial intelligence create maps in conjunction with data providers across the world.
Microsoft’s specialists also take part in some more advanced projects – as creating safety systems for the automotive industry, that try to ensure normal and safe driving even in case of wrong driver actions or road condition problems. They also have ideas about high integration of functions into one main central “brain” of the car, that will take care of all aspects of the driving and car functioning as a process.
The piece of news worth millions of dollars
As a manufacturer of advanced automotive aftermarket technologies, varying from spark plugs to automotive navigational equipment, Denso always seeks best possible options to get newest available technologies from whatever source. Their executives try to aid their research teams by dealing with world’s most well known companies in the are and in what may be a very smart move, on the 7-th of July a deal was done between Denso and the software giant Microsoft. The deal will give Denso access to Microsoft’s patents for very advanced technologies – as automotive navigation software, auto-drive patents and so on. Though financial terms of the deal weren’t disclosed both Microsoft and Denso’s shares have gone up since the deal was announced.
If these patents are brought to life, some of the main car and truck manufacturers around the world may soon integrate more advanced technologies on lower price, leading to effects that will be felt by many customers around the world.