IVAS and the future of defense acquisition -- FCW fcw.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from fcw.com Daily Mail and Mail on Sunday newspapers.
By Lauren C. Williams
NOTE: This article was first published on FCW.com.
The Army made national news when it announced a deal to buy more than 120,000 augmented reality headsets from Microsoft for $22 billion in order to enhance soldier training and situational awareness.
The Integrated Visual Augmentation System, which has been in the works for more than three years and has functions like radio communications and high-resolution night and thermal sensors, is undeniably cool. But there’s more to the potentially multibillion deal, which could mark a potential shift in how the Defense Department can and should buy new technology.
Firms/companies > M > Microsoft
Microsoft signs $22 billion deal to supply high-tech headsets to US Army
05 April 2021
Microsoft Corp on Wednesday said it has won a nearly $22 billion deal to supply the US Army augmented reality headsets based on its HoloLens product.
Under the contract, worth $21.88 billion over a 10-year period, Microsoft will supply the US Army tens of thousands of hi-tech goggles or augmented reality headsets, which is backed by Azure cloud computing services.
In a separate email to Janes, the Army confirmed the contract award value and said the deal has a base period of five years and includes an option to extend it by another five years.
Last week, the U.S. Army announced that it had finalized a $21.9 billion deal to have
Microsoft (NASDAQ:MSFT) provide 120,000 augmented-reality (AR) headsets for its troops over the next 10 years. Investors have responded enthusiastically, bidding Microsoft stock up by more than 7% since the announcement.
But what will this deal really mean for Microsoft?
Image source: Getty Images.
The deal
The contract is worth upwards of $21.9 billion and could see Microsoft sell the government more than 120,000 headsets based on its HoloLens 2 hardware. The deal is good for an initial period of five years with the option for the Army to renew it for another five years. This means that some portion of that $21.9 billion in revenue may not be guaranteed, but as long as Microsoft holds up its end of the deal, it s unlikely the government will back out five years in and go through another arduous implementation process with a different vendor.
Microsoft Corp.âs multibillion-dollar deal to build customized versions of its HoloLens goggles for the U.S. Army is moving forward, one year after the Senate considered freezing half the contract.
The deal, initially unveiled three years ago, is now worth as much as $21.9 billion over 10 years, according to Microsoft. The agreement runs for an initial five years, with an option to add another five years. The software maker will manufacture the augmented-reality devices in the U.S. The Army announced the contract Wednesday on its website.
Microsoft shares jumped almost 3% to $238.29 after the news.
The program, known as the Integrated Visual Augmentation System, or IVAS, aims to develop a âheads-up displayâ for U.S. ground forces, similar to those fighter pilots use in the cockpit. The system would let commanders project information onto a visor in front of a soldierâs face, and would include other features such as night vision. In October 2018, the U.S. Army a