Microsoft’s Barter Deal With Inrix
The Dust
Network is an exciting new traffic prediction service developed by
Inrix, a startup company in Kirkland, Washington. A complex
algorithm (a mathematical formula for solving a problem) is used to
predict traffic flow up to a year ahead of time. They do so by
factoring in hundreds of data points, from a freeway’s history of
traffic snarls to your neighborhood school’s plan for a half-day of
classes.
Admittedly,
they can’t predict any auto accidents, but the new technology has
major portals excited, including Yahoo, which will be integrating
the Dust Network into their map services. Automaker BMW is also
going to offer it in upcoming models.
The company
that developed Inrix’s technology, spending four years and $20
million, is Microsoft. But rather than develop it commercially,
Microsoft licensed it exclusively to Inrix. Interestingly, its CEO
Bryan Mistele is a former Microsoft executive.
The Inrix deal is part of Microsoft’s new strategy, which is to spin
off research in exchange for royalties and equity in new companies.
