TomTom’s maps and traffic will power Microsoft products through end of decade
TomTom [TOM2] said this week that its maps and traffic data will be used by Microsoft MSFT 0.00%↑ in location-based services. The deal, which will go through the end of the decade, will be for Microsoft Azure Maps, Bing, Microsoft Power BI and Microsoft 365.
Specifically, TomTom’s Orbis Maps and traffic services will be licensed to the computing gaint globally. Both will be integrated with Microsoft’s AI to offer products in automotive, logistics and mobilty markets.
The companies, which have partnered since 2016, say the potential reach of the joint location services could be hundreds of millions of people. TomTom already powered Azure Maps for asset tracking, spatial anaytics and IoT applications.
“By hosting their services in Microsoft Azure, TomTom’s location technology interfaces seamlessly with our services,” said Nicholas Lee, Microsoft Maps and Local corporate vice president, in a statement.
The companies have been working on automotive projects, including AI-based solutions. One is a new in-vehicle digital cockpit and infotainment solution with cloud analytics.
TomTom Changes Outlook, Reports Downturn in Auto Sales…
In other company news, TomTom, citing a decreased demand for new cars, said it would not meet its 2025 $654 million location revenue target. In addition, the company, which saw its auto location technology division sales drop to $95.2 million in the second quarter, dropped its 2024 revenue estimates.
“Long-term automotive industry trends continue to support a deeper integration of our technologies into the vehicle over time. However, a combination of downward revisions for near-term car production volumes and delays in new model introductions has resulted in a generally less predictable market environment,” said TomTom CEO Harold Goddijin. “In light of these developments, we now expect our full-year revenues to come in at the lower end of our guidance.”
