The company also wanted to control all aspects of the system and wanted its brand out front, ideas that did not sit well with carmakers. "They have to learn how to behave like a supplier in order to be accepted as a credible force in the automotive space," Koslowski said.
This time around, though, Microsoft is doing a much better job of working with partners -- both the carmakers and the companies that make gear sold after a car leaves the dealer, analysts said.
"Microsoft is doing fairly well in Japan and is making headway in Europe," Magney said.
Although the company has struggled a bit more to gain ground with US manufacturers, Magney said it's likely that the company could also announce a design win there soon. "All of the major companies are developing a telematics strategy and investing money," he said.
Unlike past efforts, in which Microsoft tended to have a single vision of what an in-car computer would look like, this generation of devices is likely to vary in appearance and function. Some will be purely for entertainment, others for navigation, and still others may serve as information devices that connect to email and calendar information. The systems also draw heavily on the company's substantial research into voice-recognition and other innovative methods of accessing data.
Microsoft is also looking at different ways for such systems to connect to the outside world. Some devices will read information on memory cards, while others will have a built-in network connection. Some will piggyback off mobile phones and other devices. "Most likely there will be multiple ways [of connecting] for the near future," said Kelly Kimura, a product manager in Microsoft's automotive unit.
At last month's Comdex trade show, Microsoft showed off a BMW X5 sport-utility vehicle that had a prototype voice-activated system that could be used to get traffic information as well as access email and other personal data.
