Business

Microsoft wins US$22 bil Pentagon contract for augmented reality gear

Company to rapidly start producing Integrated Augmentation System, based on commercially available HoloLens

Updated 5 years ago · Published on 01 Apr 2021 5:30PM

Microsoft wins US$22 bil Pentagon contract for augmented reality gear
A head-mounted display used by soldiers for battle and training employs sensors for night and thermal vision in addition to providing data for help in engaging targets and making tactical decisions. – AFP pic, April 1, 2021

SAN FRANCISCO – Microsoft has won a Pentagon contract for augmented reality headgear for soldiers worth US$21.88 billion (RM90.7 billion) over the next decade, the company and the United States military announced yesterday.

The headsets, based on commercially available HoloLens, will make soldiers safer and more effective, according to Microsoft technical fellow Alex Kipman.

The Defence Department said the production agreement is for five years with a renewal option –  that could make the contract worth “in excess of US$21.88 billion” over 10 years, a Pentagon official said in a statement.

Microsoft will rapidly start producing the so-called Integrated Augmentation System under the contract.

The award aims “to deliver next-generation night vision and situational awareness capabilities to the Close Combat Force at the speed of relevance”, the Pentagon said.

A head-mounted display used by soldiers for battle and training employs sensors for night and thermal vision in addition to providing data for help in engaging targets and making tactical decisions, officials said.

“The programme delivers enhanced situational awareness, enabling information sharing and decision-making in a variety of scenarios,” Kipman said in a blog post.

The contract shows that Microsoft can make money from its augmented reality offerings with the military and likely heralds expanded uses by private businesses as well as consumers, according to Wedbush analyst Dan Ives.

“The second and potentially most important point is this deal just further drills in the narrative that Microsoft is tightening its grip on deals within the DoD and Pentagon,” Ives said in a note to investors. – AFP, April 1, 2021

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