Microsoft to Build 120,000 HoloLens Headsets for the U.S. Army

Posted on March 31, 2021 by Paul Thurrott in Hardware, Internet of Things (IoT), Mobile, Wearables, Windows 10 with 21 Comments

Microsoft announced today that it has received a contract worth up to $21.88 billion over ten years to build 120,000 custom HoloLens headsets for the U.S. Army.

“The United States Army will work with Microsoft on the production phase of the Integrated Visual Augmentation System (IVAS) program as it moves from rapid prototyping to production and rapid fielding,” Microsoft’s Alex Kipman announced. “The IVAS headset, based on HoloLens and augmented by Microsoft Azure cloud services, delivers a platform that will keep soldiers safer and make them more effective. The program delivers enhanced situational awareness, enabling information sharing and decision-making in a variety of scenarios.”

Microsoft has been working on this project with the U.S. Army for about three years and the contract is subject to a second approval after 5 years. If it’s approved a second time, it could be worth over $21 billion.

“The Army’s partnership with Microsoft 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,” the U.S. Army announcement notes.

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