This paper presents technologies that have strategic importance in future motor drives. The underlying strategic issue for motor drives is maintaining cost while increasing certain dimensions of functionality. The dimensions of functionality which should increase include reliability and added value features such as providing continuous energy optimization, providing sensing of the driven system suitable for application specific diagnostic purposes, and providing continuously optimal thermal utilization of the capability of the drive. This paper will address each of these issues and discuss the technology status for each case, with a focus on research needed to fully deliver the needed functionality.