While the Web goes wireless in the mobile era with Ads, Androidification, iPhone-ness, alternative distribution & billing, and while working-around-the-pipe, TCS stays focused on the same wireless carrier business and partnerships they've nurtured for over a decade. If not familiar with TCS, their location-based offerings have grown from legislation-driven e911 emergency services in the late 90s with their acquisition of xyPoint, through their acquisitions runs of Kivera and Autodesk Location Services, and now through their $170M buyout of Networks In Motion - one of two location-focused mobile app companies in the US making enough money to be worthy of recognition. Strangely enough, not a single news pub, reputable blog, or Valley socialite covering location-based services mentioned the later last December - an indication to me that most haven't a clue about the history of the space TCS has earned steady & predictable revenues and profits in. At a time when more companies are distancing themselves from working with carriers, TCS continues to invest in the backend, less flashy part of location with stable business-minded due diligence driven exclusively by ongoing trusted relationship discussions with their carrier customers and partners. Curious why, I recently caught up with Elliott Hamilton, a friend, former colleague, and TCS' Sr. Director of Strategy. I mostly wanted to understand why TCS continues to invest in more geoservices and applications through the acquisition of NIM. TCS already had a robust geo engine and suite of similar apps in their product portfolio from their 2004 Kivera acquisition. I also found the timing of the NIM deal strange, coinciding with free-Google-Nav-inside Droids hitting Verizon - NIMs main channel partner a la VZ Navigator.
Here's what Elliott had to say...
"The NIM acquisition is about servicing our operator customers as best as possible, with our infrastructure, services, with applications. We obviously did our due diligence with Verizon and other operator customers, and we feel there's lots of room for growth. While today, the operators offer point solutions, I can definitely envision them having very powerful integrated location-based experiences that include navigation, locators, and search, all with parental controls and social phonebooks built-in. We'll continue to offer them whatever they want, if that's advertising or pay-for apps and experiences."
When asked about challenges faced by free alternatives...
"We don't see Google taking over the world, because operators don't want Google to take over the world. Google may get 20% market share, but not all of it, and we see the total market growing 3X over the next five years. No one is going to let Google dominate because they understand Google is not looking out for their interests. If an app is still making money, operators will continue to market it as a premium service while watching free Android apps and emerging ad revenues carefully. It will also be interesting to see how other handset manufacturers now using Android react to Google's own device launch."