The US military has announced that Microsoft has won a contract to manufacture a new specialized model of augmented reality glasses HoloLens, and this contract, which will include more than 120,000 glasses, could be worth about 21.88 billion dollars over 10 years.
After the previous statements, Microsoft shares rose 1.7% to reach $235.77 per share at the end of trading on Wednesday, and the deal indicates that the company can generate huge revenues from future technology products after years of research in areas beyond its main business such as operating systems and software.
Its deal will include provision of several versions of the product, and this contract follows an earlier $480 million contract Microsoft received in 2018 to produce IVAS prototypes for the military.
The basic version of the HoloLens, which costs $3,500, can see accumulated stereoscopic images of the actual surroundings and interact with them through hand gestures and voice, and the glasses system may also show the target of the weapon, as the glasses provide soldiers with the ability to fight and train in one system.
The current contract presented on Friday is essentially for a 5-year period with the possibility of extending it for another 5 years, and this deal makes the giant Microsoft a more prominent company in supplying technology to the US military,
Note that in 2019, Microsoft signed a contract with the Department of Defense aimed at securing cloud services, outperforming Amazon, which is considered the leader in the cloud services market. Amazon was among the competitors to sign the contract in the federal court, which could be worth up to 10 billion dollar.