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Tech Crunch opinion piece on AR startups – will 2019 be a rough year?

2018 was supposed to be a year where the foundational tech for augmented reality was built out a bit and the industry took a couple big leaps. Things started off well-enough, but momentum really doesn’t seem be on the side of some of the industry’s heaviest hitters heading into 2019, suggesting that life for earlier-stage startups may not be much easier.

There are plenty of reasons to be long-term bullish on AR, but the time horizons some have espoused seems to be bogus and pitch decks organized around a near-term spike in phone-based or glasses-based users are going to have a tougher time being taken seriously in 2019.

Some of the points raised in the article include:

  • Whether Magic Leap hindered progress in the AR industry by siphoning investor attention and discouraging other hardware startups from joining the fray in the face of a billions-backed unknown.
  • Are solved tech problems stuck in limbo waiting for a problem that makes them worthwhile?
  • Known platform fundamentals are still being tackled.
  • Issues like segmenting environments by objects and accurately identifying them are still in the earliest stages.
  • Whether the hardware is small enough yet

Many other points and discussions are raised in this comprehensive article.




The 10 Biggest AR Investments of 2018

Information about all the following investments and videos can be found in the full comprehensive write up:

WaveOptics $26 million

CTRL_Labs $28 million

Varjo 30 million

Ubility6 37.5m million

Mojo Vision 50 million

WayRay 80 million

Rokid 100 million

Niantic 200 million

Magic Leap 461 million

Epic Games 1.25 billion




The State of Industrial Augmented Reality: A Spotlight on Industrial Innovation.

The State of Industrial Augmented Reality is an ongoing series of market research and analysis conducted by PTC. These reports explore the robust and increasingly complex opportunities presented by the Industrial Augmented Reality (AR) market. Tapping into PTC’s 30 years of technology expertise, 30,000 global customers, and 1,000 technology and service partners, the State of Industrial Augmented Reality series delivers actionable trends and insights across the entire IIoT ecosystem.

From the Executive Summary:

Over the life of our survey, use case adoption and customer business goals have shown that industrial enterprises are starting augmented reality projects internally, often piloting one or two use cases within their operations or service functions to prove value before expanding AR initiatives. Companies universally recognize the importance and benefits of adopting AR for their internal use. In today’s business climate of razor-thin operating margins and mounting economic pressures, the race for efficiency is starting to receive a nitrous boost from AR.

This mid-year spotlight edition of our State of Industrial Augmented Reality series examines development and adoption trends for companies primarily focused on developing augmented reality experiences for their end customers externally, by enhancing their customer-facing products, services, and solutions through the use of AR technology versus for their own internal use and benefit within their internal value chain.

PTC’s key findings include:

Industrial enterprises are keen to improve customer experiences, open up new revenue streams, and disrupt competition by leveraging the new augmented reality capabilities for product and service differentiation.

Use cases being developed for end customers have a strong focus on service or maintenance instructions, helping to reduce machine downtime and maximize product value.

Operator-focused companion experiences provide new opportunities for value-add offerings and improving customer service

Read the full report by PTC here.




Gartner: Immersive Augmented Reality is Coming to the Enterprise

“In everything we do, we’re going to have augmented information and a richer experience,” said Thomas Bittman, a Distinguished Analyst at Gartner. “We believe this will push into enterprise in a big way.

“Within three years, enterprises will be doing mixed media,” said Bittman. “These immersive technologies are lighting a fire of generational change. There’s a very real consumerization of IT. It’s starting in the home, but we believe these investments will grow into enterprise environments.”

“Virtual reality is a cool technology, but for business it is augmented reality that will get traction,” said Bittman. “All the investments in virtual reality will lay the groundwork for AR. IT and IO (infrastructure and operations) departments need to work with the business units on the art of the possible.”

The Front Lines of a Digital Transformation

The emergence of augmented reality is just one of the ways that the world of business is changing, according to Gartner. The overarching message of last week’s event is that a global digital transformation is well underway, and all of its forms will be disruptive to the way that consumers and business use technology. All of these changes will generate more data, which will need to be stored, moved and analyzed.

“The underlying theme is that the future of infrastructure is everywhere,” said David Cappuccio, a Gartner Distinguished Analyst, in Monday’s keynote. “The future is radically changed.”

Given the modest traction for virtual reality, the accelerated enterprise adoption of augmented reality was one of the more intriguing predictions from Gartner. Bittman says that AR usage will be one element of a broader shift to always-on, interactive experiences that blend the physical, virtual and “sensor-integrated” realms.  He says AR will play a key role in new “overlays” of news, communications, education and training.  An example: If you’re seeking to learn a specific new skill, an internet search will likely surface a how-to video on YouTube, providing a guide to the task. What if this type of demo could be incorporated into wearable goggles or glasses, providing a visual guide as an individual works on a piece of equipment or technology? Going one step further, Bittman noted the potential for displaying information on floating holographic screens, not unlike the futuristic technology from the movie “Minority Report.”

As enterprises adopt increasingly computing-intensive workloads, such as cloudbased applications and artificial intelligence, they are using more IT resources through the cloud. Download the new white paper from Stream Data Centers that explores a better way to reach the cloud, and ways to make connecting easier.

This technique could have many workplace applications in training or repairs, and provides a way for companies to quickly share domain knowledge with a distributed workforce.

“People weren’t born to use keyboards and mice,” said Bittman. “We are on a path to eliminate these artificial barriers. Immersive experiences are creating whole new challenges, and all of them create data.”

What AR Means for Data Centers

Storing virtual reality data isn’t as straightforward as dealing with traditional kinds of video. That’s because VR depends on 360-degree views that require the video content to keep running while people turn their heads and interact with virtual environments. As a result, VR and AR content may need up to 20 times more storage space than an HD video. Speed has to factor into storage, too, especially since many augmented reality applications support real-time environmental changes and viewpoints served up to users almost instantly.

VR can also require substantially more bandwidth than standard kinds of video too, up to 6 gigabytes of bandwidth per second. They observe that the fastest solid state drives available to consumers now only handle about 3.5 gigabytes per second, making them incapable of supporting many VR apps.

An early example of the challenges of delivering augmented reality content was the 2016 debut of Pokemon Go, which provided an unexpected stress test for one of the world’s largest and most sophisticated infrastructures, the Google Cloud Platform. The game’s launch generated half a billion downloads, or about 50 times more traffic than anticipated, leaving many gamers frustrated with login failures and inconsistent uptime.

While some business AR applications will be focused on corporate environments, others will be distributed in edge computing environments. An example: retail stores.

“They want to create a very immersive experience in their physical locations,” said Bittman.

Retail Uses AR for Immersive In-Store Experiences

Retail use of immersive technology was discussed earlier this year at DCD Edge in New York, where Kevin Brown of Schneider Electric discussed cutting-edge strategies for store environments. “Retailers are a fascinating case study because they’re all focused on one thing – trying to survive against Amazon,” said Brown,  Senior VP of Innovation and CTO of the IT division at Schneider Electric.

Stores are seeking to create unique in-store experiences by combining augmented reality with personalization. One example is the use of “magic mirror” AR tech to create virtual fitting rooms that show shoppers how they would look wearing a new dress or suit – without having to actually try the garment on.

“This is not Star Trek stuff,” said Brown. “People are doing this now. If that’s what you’re driving toward, what’s the impact of an outage?”

That’s why Schneider and other edge-focused vendors are supporting retailers with on-site hardware to support the requirements of these applications. Brown says the IT component for these edge installations won’t be a Tier III data center, but handle resiliency through the network. “Do I need generators? Maybe we just need two hours from a lithium-ion battery.”

What About Security?

As with many new technologies, all these new AR and edge applications will need to consider security.  “Historically, retailers keep security at the local level,” said Brown. “The janitor may have the keys to the IT closet.”

AR data screens will need to consider security and privacy as well, if the Internet is a leading indicator. Many web pages feature interactive elements from advertisers (yes, “Minority Report” again), which in turn have become targets for hackers.

That’s why new technologies can mean stress and challenges for IT managers, according to Gartner VP Analyst Bob Gill. “IT folks are yearning for control, and trying to get ahead of the wave,” said Gill. “Business units need governance.”

Bittman says IT teams must commence work now to secure and manage these new immersive technologies.

“Customers are going to expect it,” said Bittman. “This will be important to you. It’s coming quickly, and should be on your three-year horizon.”




Ultrahaptics raises $45m Series C

The new funding is led by Mayfair Equity Partners, the buyout and growth investor in the TMT and Consumer sectors, with further new investors including Hostplus, the major Australian superannuation fund.

Existing shareholders IP Group plc, Woodford Investment, Cornes and Dolby Family Ventures have again participated.

Founded in 2013 and based on technology developed at Bristol University, Ultrahaptics’ core technology uses proprietary algorithms and supporting hardware to project ultrasound-driven tactile sensations in mid-air.

Users can ‘feel’ and interact with virtual objects and controls, using freehand gestures to interface with technology and content.

Ultrahaptics is currently engaged with blue-chip customers across key verticals such as automotive, where the company has developed concept vehicles with Bosch and Harman; digital signage; location-based entertainment; industrial controls; medical interfaces; VR games; and augmented reality / virtual reality (AR / VR) enterprise applications. The company also supports the international academic community through a programme designed to enable additional haptics research and development.

“We’re delighted to welcome major new investor Mayfair, while receiving further endorsement and support from our existing shareholders for the company’s exciting next phase of development,” says CEO Steve Cliffe, “our funding has become ever more global, reflecting the potential of our technology in industry sectors and markets all over the world.”

 




Dos and Don’ts of Enterprise AR with Scope AR

Enterprise AR is a rich area of opportunity, given continually-proven bottom line impact. In fact, it’s the largest XR sub-sector in the outer years of ARtillry Intelligence’s latest revenue forecast. That’s mostly driven by demonstrable ROI in areas like industrial productivity and error reduction.

But despite that ROI story, there’s still lots of enterprise inertia and risk aversion, said Scope ARCEO Scott Montgomerie at AWE Europe (video below). We believe it will take a while to get over that hump, but then adoption will accelerate as we saw with enterprise smartphone adoption.

To accelerate that process, it’s all about case studies and proof points. It’s also about moving enterprises past “pilot purgatory” says Montgomerie. That happens when innovation centers in a given company adopt technology but other constituents, like I.T. dept. and employees, don’t.

But it still starts with the case studies. And those are slowly building throughout the enterprise AR sector. Scope AR has been an exemplar in pulling together ROI proof points, including increased output, better accuracy rate in diagnosing problems, and reducing time for task completion.

For example, Scope AR’s WorkLink software for pre-authored AR instructions reduced Lockheed Martin’s “orient & decide” portion of a satellite assembly by 99 percent. This type of work is where AR shines, as it reduces the cognitive load that’s inherent in translating 2D manuals to 3D space.

“To put into common terms, think about IKEA furniture,” said Montgomerie. “You have to look at those paper instructions, read weird diagrams, and do mental mapping of those diagrams… Multiply the complexity of that by a thousand and that’s the challenge we’re facing.”

Beyond pre-authored AR instructions, remote AR assistance (a.k.a “see what I see”) is proving valuable. Fast-food equipment supplier Prince Castle used Scope AR’s Remote AR to fix on-site equipment. It achieved 100 percent first time diagnosis rate and a 50 percent labor cost reduction.

“There’s about thirty things that can go wrong with these pieces of equipment,” said Montgomerie. “Figuring out which one of those things have gone wrong is really the key, and just with a phone call, their diagnosis rate was terrible — about 90 percent failure in first-time Diagnosis.”

As we’ve examined, Remote AR can also have macro-effects in an organization, such as reducing impact from subject-matter experts retiring. Shifting them from field work to remote AR assistance can delay retirement. It can also optimize diminishing volumes of experts through telepresence.

“In the next five years, they’re going to lose 330 years worth of experience just by having baby boomers retiring,” said Montgomerie. “These guys have spent 35 years learning exactly how to maintain, fix and operate equipment, and that knowledge is literally walking out the door.”

Unilever realized this advantage, as well as the unit economics of lessened downtime. Using Remote AR, it was able to reduce downtime by 50 percent for an ROI of 1,717 percent. The benefit is having things fixed faster when you don’t have to wait for a human to travel to the site.

But again, ROI proof points only get you so far. It’s also about setting the technology up to succeed by appealing to stakeholders throughout an organization — business leaders, I.T. depts. and employees, says Montgomerie. And that’s more about marketing than technology.

Business leaders are the easy part, and are usually sold on the merits of case studies like the above. Then comes I.T., whose job is to be risk-averse. Montgomerie’s advice: Get them involved as soon as possible. That may seem counterintuitive but it pays dividends downstream.

“I think it’s a common mistake — one we’ve certainly made — to do an end run around I.T.,” said Montgomerie. “It’s easy to say ‘yeah, let’s prove the value first and then we’ll worry about I.T. when we get to scale. I.T. will screw you at that point, so you need to get them in the conversation early.”

He also recommends deploying AR through smartphones and tablets when possible. The I.T. and data security pushback is lower with mobile devices, given their tenure and trustworthiness in the enterprise. Headsets like the Hololens conversely haven’t gained that level trust from I.T. yet.

As for employees, it’s likewise hard to win them over. But successful deployment requires their buy in. Resistance includes fear of new technology and job security. Montgomerie recommends educating them on how it benefits them, and enlist change-management pros.

“We’re talking about some pretty impressive ROI numbers here,” he said. “If I’m a worker I’m thinking, ‘oh well, the company can still do exactly the same on their bottom line with 50 percent of the workforce… does that mean I have a 1 in 2 chance of keeping my job next year’.”

In a broader sense, Montgomerie recommends deploying AR where it works best. It doesn’t work in rote and automated functions, where employees are already fine-tuned. It shines in low-volume, high complexity situations (like space shuttles), or high volume, small improvement scenarios.

Put another way, don’t be a hammer searching for nails. Act in a needs-driven way to deploy AR in targeted and optimized ways. Scope AR took this path with aerospace, engineering and heavy equipment, but Montgomerie believes there are many other verticals primed for AR.

“I think there’s an impression out there that AR is great for everything. I can tell you it’s not,” he said. “We’ve chosen key industries to go after… there are other industries where this is a greenfield — things like medical, construction, and logistics. There are some great use cases there.”

 




How XR is powering the fourth industrial revolution

Key points made in the article include:

  • AREA member Vuzix’s M300 Smart Glasses enabling of service maintenance and remote assistance. “See-what-I-see” augmented reality (AR) software, and the ability to capture images and video, the whole servicing process can take less than 25 per cent of the time it would using traditional methods.
  • Smart sensors producing internet of things (IoT) data and advances in robotics are being combined with emerging technologies such as XR, which merge digital, physical and human elements to change industrial processes.
  • When everything in a factory or workplace is connected and producing data, XR can act as the missing piece, which brings real people and their expertise into the equation.
  • Many enterprises have moved in from small-scale pilots to widespread adoption. The combination of XR and IoT is already changing the way people work.
  • Examples are given from the Volkswagen Group use of Vive’s VR hardware for production and logistics staff. They intend to train 10,000 employees in XR by the end of 2018.
  • Benefits include the real machines and operating materials can be operated around the clock. Furthermore, it saves travel and time.
  • In addition, Volkswagen and also BMW are seeing results from increased virtual prototyping and production line training in XR. Bringing intelligent robots into workplaces is a core part of this brave, new industrial revolution and XR is being used to build a bridge between human workers and robots.
  • In aerospace, the example of Airbus is discussed including its “factory of the future status”. IoT data flow feeds the real factory, and enables remote, virtual monitoring and control of large, complex aircraft construction.

 




10 innovative technologies with potential impact for business

To find out what innovations are coming and what’s likely to impact the business sphere, Gerber asked a panel of entrepreneurs from Young Entrepreneur Council the following question:

With many new applications and innovations at play, what technology do you expect will have the most exciting implication for businesses in the coming year and why?  Here were their answers.  Of course we were delighted but not surprised to see Augmented Reality featuring here. Read all about why these innovative technologies were chosen on the full original blog.

  1. 5G networks
  2. Mainstream blockchain apps
  3. More AI enabled platforms for automation
  4. Machine learning for customer service
  5. 3D printing
  6. New security measure
  7. Augmented Reality
  8. More AI solutions for SMEs
  9. Wearable tech
  10. Optimized communication



Challenges of Enterprise Wearables, AR and VR: A Changing Landscape, Budget, Battery, and More

Some of the challenges addressed include keeping people engaged, dealing with opponents and a constantly changing hardware landscape, budget and financing, battery life and back-end system integration. This can be watched on their blog.

About the conference:

The Enterprise Wearable Technology Summit (EWTS) is an annual conference dedicated to the use of wearable technology for business and industrial applications. As the leading event for enterprise wearables, EWTS is where enterprises go to innovate with the latest in wearable tech, including heads-up displays, AR/VR/MR, body- and wrist-worn devices, and even exoskeletons. The 6th annual EWTS will be held September 17-19, 2019 in Dallas, TX. More details, including agenda and early confirmed speakers, to come on the conference website.




Five Ways Augmented Reality Can Improve Corporate IT

He goes on to assert that this is part of the promise of augmented reality for corporate IT, and this vision is quickly coming to IT departments the world over. Augmented reality will be used across roughly 30 percent of large enterprises and by 25 percent of field service technicians by 2020, according to research by Gartner and IDC. Overall, the market for AR is expected to reach $547.2 billion by 2024.

There are five ways Augmented Reality is set to improve corporate IT:

  1. Improving data visualization
  2. Delivering real time data in the field
  3. Providing easy remote access
  4. Boosting employee training
  5. Assisting with physical site planning