Microsoft’s $21+ Billion Deal With The U.S. Army: Details

By Amit Chowdhry ● Apr 1, 2021
  • Microsoft Corporation (NASDAQ: MSFT) recently announced that it won a deal to sell augmented reality headsets to the U.S. Army valued at up to $21.88 billion, which are based on the HoloLens. These are the details.

Microsoft Corporation (NASDAQ: MSFT) recently announced that it won a deal to sell augmented reality headsets to the U.S. Army valued at up to $21.88 billion over 10 years, which are based on the HoloLens. And the product will be based on Azure cloud computing.

In a statement, the United State Army said had awarded Microsoft with a fixed price production agreement to manufacture the Integrated Visual Augmentation System (IVAS). And this award transitions IVAS to production and rapid fielding to deliver next-generation night vision and situational awareness capabilities to the Close Combat Force (CCF) at the speed of relevance. The partnership between the Army and Microsoft had accelerated a prototype system development through the Soldier Centered Design approach to deliver an unprecedented system to our CCF.

The IVAS had aggregated multiple technologies into an architecture that allows the Soldier to Fight, Rehearse, and Train using a single platform. And the suite of capabilities leverages existing high-resolution night, thermal, and Soldier-borne sensors integrated into a unified Heads Up Display to provide the improved situational awareness, target engagement, and informed decision-making necessary to achieve overmatch against current and future adversaries. This system also utilizes augmented reality and machine learning to enable a life-like mixed reality training environment so the CCF can rehearse before engaging any adversaries.

The Army’s partnership with Microsoft had redefined the timeline for rapid development and production of a major defense program by taking advantage of the Middle Tier of Acquisition and Other Transaction authorities, and partnering with a non-traditional defense contractor that is an industry leader in developing innovative technology. And this partnership between the Army and Microsoft showcased areas that the Department of Defense and industry can work together towards achieving modernization priorities in the interest of national security.

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