How is AR/VR for enterprise generating ROI for companies around the world?
Microsoft Hololens has the largest user base for smartglasses today at 50000 users. With the launch of the Hololens 2 contract with the US army, that figure could double to more than 100,000 users.
Ford is experienced in the enterprise VR space, and developed an immersive vehicle environment in 2012. Currently over 10,000 staff use the system, with over 1000 reviews in 7 countries.
High frequency users
AR/VR for enterpise needs to be an everyday solution for companies to be successful. Upskill CEO Brian Ballard noted that Assisted reality smartglasses are being used in manufacturing and logistics for enterprise. But the largest number of VR usage is in corporate training, especially for staff training in highly specialised skilled jobs.
There has been some ROI on VR training: Walmart to improve training test scores for 70% of associates, United Rentals to cut training times by 40%, Fidelity to grow customer satisfaction by 10%, and a Fortune 100 insurance client to reduce training times from 3 hours to 25 minutes
Cloud services provide the backbone necessary for enterprise AR products. Microsoft Azure Spatial Anchors is one of the major enterpeise AR Cloud services, while there are other startups like 6D.ai and Ubiquity6.
Enterpeise AR/VR platforms required millions of installed bases to scale up. Microsoft Hololens has the potential to establish hundreds of thousands of installed bases with corporate and military contracts. VR for entrpise still has a long way to go to scale up, but there are signs with the use of VR for staff training at Walmart.
Mobile AR has hundreds of millions of installed bases due to compatibility of mobile devices.
The Hololens 2 has the potential to become the first critical hardware for smartglasses.
In VR, new headsets like the Oculus Quest and HTC Vive Focus have the potential to become critical hardware for more common users.
In AR invesments, Magic Leap has raised more than $2.6 billion to date. Also, Microsoft’s $480 million contract with the US army is the largest AR contract for enterprise to date.
In VR investments, the number of investments has dropped recently, while Facebook and HTC continue to spend internally to grow their enterprise VR businesses.
For enterprise smartglasses, the HoloLens 2 and ecosystem look like the ones to beat in the Enterprise Reality Ecosystem. Google and Apple are potential contendors in the future, while it will be interesting to see what Magic Leap delivers.
For enterprise VR, HTC, Oculus and Microsoft are the contenders for full stack enterprise solutions leadership.
Too Early to Tell
It is still early days for the enteprrise reality ecosystem.
Wihle enterprise smartglasses, VR and mobile AR are starting to be used, there are still important ingredients necessary to establish the ecosystem. Nevertheless, it wil be exciting to see how the ecosystem develops.