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TomTom sees licensing boom from Microsoft deal

by on06 February 2019

Significant growth

TomTom expects significant growth in its enterprise, or software sales in 2019.

The company had forecast 15 percent combined revenue growth for 2019 from sales of digital mapping services to carmakers and software customers.

Major software customers include Apple, which is building its mapping system but still uses TomTom for coverage in most areas for Apple Maps, and Microsoft, which this week announced it was expanding its use of TomTom’s maps in its Bing and Cortana products.

“We expect enterprise to show significant year-on-year growth in 2019, in part due to the Microsoft deal announced this week”, the company said.

Two days ago the pair announced that they were deepening their relationship. Microsoft's Azure will also become TomTom's preferred cloud provider.

As part of the expanded deal, the companies said, TomTom will be "a leading location data provider" for Azure and Bing Maps. Azure Maps allows companies to build maps, routing and traffic data into their cloud-based apps, for example, to create Ithe internet of Things, logistics and asset tracking services.

Building the maps in Azure reduces the latency to customer applications, said Tara Prakriya, partner group program manager of Azure Maps and connected vehicles. "Azure customers across industries end up winning when their geospatial data and analytics, TomTom data, and Azure Maps services are all running together in the same cloud", she said.

For example, using the Azure Maps routing services powered by TomTom allows for better distribution of goods to retailers, restaurants and homes. "Using the freshest maps and traffic information can determine delivery range, optimize delivery routes and provide customer insights into delivery status", the companies said.

Mapping has become an unexpected battleground for tech companies. Google, for example, has been signing deals to get its Google Maps service used in cars. Late last month TomTom said it was selling its telematics business to tyre company Bridgestone for €910 million ($1.03 billion) so it could focus on its core location business.

Last modified on 06 February 2019
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