Microsoft continues $22 billion HoloLens IVAS deal – XR Today

This month, Microsoft successfully completed the MR hardware testing phase with the US Army, allowing the company to continue innovating its Hololens product while taking advantage of a huge military contract that is currently an investment. Investing 22 billion USD for the US Army. Microsoft is undergoing research and development (R&D) with the US Army to refine version 1.2 of the HoloLens Integrated Visual Augmentation System (IVAS), an MR device for soldiers in the field .

Based on its budget request earlier this year, Microsoft is aiming to secure an additional $165 million by 2024 while also dedicating $76 million to IVAS v1.2 development.

The US Army’s Assistant Secretary of the Army for Acquisition, Logistics and Technology has approved Microsoft’s request for phase two development of the IVAS device – following the government’s blockade in early this year.

Lt. Col. Denny Dresch, IVAS product manager for the Program Executive Office Soldier, more:

We want to emphasize large-scale testing. If given the opportunity, we would like to be able to test at the battalion level for combat trials.

Despite a series of unstable months, Microsoft’s development of a specialized HoloLens IVAS device for active duty military personnel has received continued support from the US Army.

After the testing phase led by the 1st Battalion, Infantry Regiment, 1st Infantry Brigade Combat Team and 10th Mountain Division soldiers, IVAS v1.2 will continue the R&D process towards the following stages. development stage.

Program Executive Office-Soldier Command, Brig. General Christopher Schneider also commented:

Now, we must make this system manufacturable and affordable.

The U.S. Army will continue to invest time and capital in the long-term contract, with soldiers providing feedback on the device to optimize the HoloLens IVAS for field use by 2025.

IVAS Version 1.2: What’s new?

HoloLens IVAS version 1.2 significantly improves military-ready MR equipment, using feedback provided by US soldiers earlier this year.

Following an earlier phase of critical testing, the most recent version of IVAS leverages MR imaging to support soldiers on the battlefield by displaying a tactical head-up display (HUD), thermal vision, and field of vision. night and passive targeting.

Furthermore, the recent version features minor improvements such as the device’s visibility at night, weight, and design to enhance its usability for soldiers in hazardous environments.

IVAS v1.2 will also come with an integrated digital store that allows soldiers to access MR-ready applications for specific military use cases, such as targeting support for Grenadiers, Topographic maps for construction personnel and virtual shooting training tools.

Schneider explains that through more solid feedback and input, “it’s easy to build an app to give soldiers what they want to do.”

In future versions of IVAS, Microsoft will integrate cloud computing frameworks to support the delivery of high-quality MR RT3D content.

History of the $22 billion contract

Despite Microsoft’s recent success testing IVAS v1.2, its long-standing military contract faced immense pressure from the US Congress earlier this year – leaving the future of HoloLens in doubt. question.

U.S. government officials were skeptical about the IVAS contract, primarily due to the significant capital investment and the numerous complaints soldiers made about the device during testing.

In January, the US Congress blocked a contract between Microsoft and the US Army that would have facilitated the distribution of approximately 121,000 IVAS devices – a potentially multi-year deal price 22 billion USD.

The US Congress blocked the move due to negative feedback during the IVAS test programs, forcing Microsoft to complete a massively reduced contract to distribute only 20 IVAS headsets.

The U.S. Senate Defense Appropriations Subcommittee cut approximately $350 million from the Army’s $400 million August 2022 procurement request, resulting in a reduced IVAS v1.2 testing period. down.

However, despite the mid-year downsizing, Microsoft successfully demonstrated usability improvements, securing further scalability support and funding from the United States Army Ky.

But does Microsoft see IVAS’s success in the future? The company has an up and down history of working alongside the US Army.

The partnership between the US Army and Microsoft saw soldiers first receive the IVAS 1.0 headset in October 2021. However, after the launch of IVAS, the pilot program and the HoloLens team more broadly has faced significant hurdles, with the US Army describing IVAS headsets as “not combat ready” last year.

IVAS has come a long way since its launch. But a history of blockades and mixed user feedback means it may not be smooth sailing for Microsoft yet.

The IVAS project still has a long development process if Microsoft wants to see its HoloLens device incorporated into active duty military personnel – beyond the testing process.

Furthermore, Microsoft appears to be aiming for a 2025 distribution opportunity, in line with the company’s refocused Industrial Metaverse vision.

The bigger picture: HoloLens 3, MRTK 3 and the Industrial Metaverse

But what does an IVAS device have to do with the rest of Microsoft’s XR roadmap? Well, it could hold a very large stake for the company.

This capital investment supports Microsoft in pursuing its strong interests, and ongoing feedback and R&D can help Microsoft refine its Hololens offering to ensure a strong third product iteration.

Previously, Microsoft representatives have noted that a new HoloLens product will only appear when the company makes significant technological improvements.

With IVAS testing, the company was able to find new design features that could demonstrate this necessary step forward in technological complexity.

In June, Microsoft Vice President of MR, Scott Evansnote:

No one wants to be obsolete because of the possibility of being 10% better. They don’t need a successor yet, but they want to know that person will be there at the right time.

For example, earlier this year, Microsoft filed a patent request for an MR device with similar design features to the IVAS v1.2 device.

According to Microsoft’s patent claims, this concept device will have a lighter design, modular frame, rigid frame, front cover lens, back cover lens, integrated sensors, ducted optics waves and display/projection devices. Furthermore, the patent highlights the same design features as the latest IVAS device, such as a brightness-adjustable display.

Additionally, Microsoft is partnering with Magic Leap and Qualcomm this year to advance Microsoft’s Mixed Reality Toolkit 3 (MRTK3) for developers and enterprise partners – the SDK behind many HoloLens apps. .

The partnership sees the companies have an equal stake in expanding the MRTK 3 framework, moving the product to its own independent organization within Microsoft-owned GitHub.

The move opens up MRTK3 to further investment by more users and hardware developers, with the company launching MRTK3, available to developers later this week.

Magic Leap also noted that the MRTK3 partnership allows the companies to provide an open ecosystem that expands developer opportunities and helps enterprise end users gain “complete control.” immersive solutions in their workplace, while the company also added that “walled gardens” hinder XR’s potential.

Robin Seiler, Corporate Vice President and CEO of Windows + Devices organization, Microsoftmore:

Given their expertise and contributions, we are grateful to strengthen their support and investment in the MRTK3 program and look forward to continued collaboration.

News of Microsoft’s HoloLens, IVAS, and MRTK 3 updates comes as the company prepares the Industrial Metaverse for 2024.

Earlier this year, Microsoft quietly teased information related to the Industrial Metaverse initiative at its Inspire 2023 launch event mentioning its latest innovation.

Microsoft’s Industrial Metaverse roadmap will also provide a “curated learning path” that provides end users with resources to introduce XR technology in the workplace, while also considering integrated technologies. first-party integrations, such as Microsoft Co-Pilot, Azure OpenAI, AI, ML, Azure Databricks, Synapse Analytics (2024), Microsoft Fabric (2024), Microsoft Purview, Power Platform, D365 Field Service, D365 Guides, D365 Remote Assist, HoloLens 2, Azure Maps, Azure HPC products, and Azure Digital Twins.

Microsoft has launched its Industrial Metaverse roadmap as part of the AI ​​Cloud Partner Program, which brings together key partners to accelerate growth and innovation towards enterprise-grade AI to advance Enterprise use cases for AI, Cloud and Metaverse solutions to improve productivity, resilience and sustainable outcomes.

Microsoft leverages AI to achieve profound success

Microsoft is rolling out its Industrial Metaverse roadmap to leverage the company’s recent AI innovations.

The company believes that AI and XR will exist side by side to improve outcomes for various enterprise use cases. Remarkable, Lili Cheng, Vice President of Business Applications and Platforms at Microsoft, explained how its investments in the emerging AI-powered CoPilot service will also improve the MR dynamics guidance service for XR headsets.

Investments in AI contribute to optimizing Microsoft’s XR solutions for frontline operations. Microsoft services like Dynamics 365 Guidance provide a spatial environment that allows frontline workers to access Microsoft-branded collaboration tools, such as Teams.

Integrated AI features enable XR-ready frontline workers to complete repair processes – which can become a significant blocker – with increased efficiency, Cheng commented. connecting employees “beyond their physical limits”.

Cheng also noted the importance and role of integrated technologies such as digital twins, explaining that RT3D data and images enable frontline staff to “better understand the machines and processes at hand.” ”. The vice president said AI enhances integrated XR technologies.

Cheng added:

Mixed reality is the eyes and ears of AI. It’s easier to drill down into operational nuances to personalize in-depth learning. When integrated, mixed reality and AI will accelerate employee training, shorten steps, and give users the working knowledge they need for the task at hand.

When Microsoft’s Industrial Metaverse roadmap is rolled out, it will come with various related and integrated technologies. Meanwhile, looking ahead to 2024, current success stories such as the approval of IVAS v1.2 could assist Microsoft in securing its position in the 2024 immersive technology market as the space faces disruption. Significant competition from Meta, Apple and others.