Microsoft Drops Ad Business

Microsoft Corp that it will hand over its display advertising business to AOL Inc and sell some map-generating technology to ride-hailing app company Uber, as it scales back on unprofitable operations.

The moves mean Microsoft will focus on its growing search advertising business based on its Bing search engine, and displaying maps on its Windows devices rather than generating the maps themselves.

Microsoft, which employs hundreds of people in its display ad business around the world, said those employees would be offered the chance to transfer to AOL and that it was not making any layoffs.

The world’s largest software company no longer breaks out results for its online operations, chiefly its MSN web portal and Bing, but they have lost more than $10 billion over the past five years. Chief Executive Satya Nadella has said Bing will turn a profit next fiscal year.

“Today’s news is evidence of Microsoft’s increased focus on our strengths: in this case, search and search advertising and building great content and consumer services,” saidMicrosoft in a statement.

Under a 10-year deal struck with AOL, now a unit of Verizon Communications Inc ,AOL will sell display ads on MSN, Outlook.com, Xbox, Skype and in some apps in major countries. As part of the deal, Bing will become the search engine behind web searches onAOL starting next year.

Microsoft also struck a multi-year extension to its existing deal with AppNexus, which provides the tech platform for buyers to purchase online ads.

Microsoft and Uber did not disclose financial terms of their deal, under which Uber will take over the part of Microsoft’s mapping unit that works on imagery acquisition and map data processing. Uber will offer jobs to the 100 or so Microsoft employees working in that area, according to a source familiar with the deal.

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Intel Shows New IoT Platform

Intel showed off a new platform which it claims makes it easier for companies to create Internet-connected smart products using its chips, security and software.

Intel’s platform is like Lego and based on the chipmaker’s components and software for companies to create smart, connected devices. The only difference is that you can’t enact your own Doctor Who scene from it.

Doug Davis, head of Intel’s Internet of Things business, said at a launch event in San Francisco it will make it a doddle to connect to data centres in order analyse data collected from devices’ sensors.

Intel’s chips should compute capability in end-point devices that scale from its highest performance Xeon processor to the Quark family of products.

Intel’s Internet of Things Group had $530 million in revenue in the September quarter. That accounted for just 4 percent of Intel’s total revenue in the quarter, but it grew 14 percent over the previous year, which was faster than the company’s PC business.

Dell, SAP, Tata Consultancy, Accenture and other companies are working with the new reference model, Davis said.

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Insurers To Use Mobile Phones To Track

A new usage-based insurance (UBI) software platform will enable insurers to track drivers’ behavior through smartphone sensors and geolocation services.

Agero, one of the nation’s largest suppliers of roadside safety software and services to automakers and insurance companies, said its new UBI telematics suite will transmit to insurers the information needed to offer discounts to good drivers, penalize others, and send alerts to emergency assistance service providers.

The UBI suite consists of the PolicyPal app, which tracks driving habits in real time, and Auto Crash Notification (ACN), which automatically notifies emergency services within moments of an accident.

Currently, State Farm’s In-Drive and Progressive’s Snapshot program, offer customers the opportunity to voluntarily participate in programs in which their insurer collects vehicle data and uses the information to determine driving habits, which in turn can be used to offer lower-rate incentives to safer operators.

Unlike Agero’s new platform, however, In-Drive and Snapshot, use a small data collection device that plugs into a vehicle’s standard OBDII onboard diagnostics port under the dashboard and transmits data from a car’s central computer to insurance companies.

Agero’s new mobile suite will greatly expand upon the universe of consumers who can vie for “discount rates” based on their driving profiles. The mobile device also travels with them in or out of the vehicle.

Over the past decade, the insurance industry has been embroiled in a heated price war, with companies vying to be king of the heap for discount pricing.

“It’s becoming a cutthroat market. They’re competing on price,” said Jeff Blecher, senior vice president of strategy at Medford, Mass.-based Agero. “To break that mold, they need a new business model. UBI does that. Now, they can compete based on the risk profile of drivers.”

UBI offers the insurance industry new opportunities for tailored discount programs. Notably, they can switch from relying OBDII dongles plugged into the customer’s car and instead use mobile apps that travel with the driver, whether he’s traveling in his own car or another vehicle.

“We want to align our strategy… with the smartphone as primary data collection point,” Blecher said.

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Oracle And Nokia Make A Deal

Nokia Oyj has agreed to grant Oracle Corp’s customers access to its mapping products, as the wireless phone company attempts to expand its location services business.

The Finnish company, which bought the world’s largest digital mapping firm, Navteq, in 2008, has been looking for ways to boost the business and recently signed mapping deals with Groupon Inc and Amazon.Com Inc.

In stark contrast with Nokia’s troubled mobile phone operation, sales at the location business grew last quarter, though it still generates only 4 percent of group revenue.

Oracle has developed a link between its own software and the Nokia Location Platform software, Nokia said on Monday. This enables the U.S. company’s business users to access the mapping services through its products.

Financial details of the deal were not disclosed, but Nokia said Oracle users would license Location Platform from Nokia for use in Oracle applications.

“Nokia has been on a mission for the last 18 months to sign mapping and location deals with large internet players. The deal with Oracle extends this,” CCS Insight analyst Martin Garner said.

Last week Apple publicly apologized after customer complaints about errors in its maps, which have been put on its latest phone operating system instead of Google Inc’s mapping service.

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