Enterprise AR & VR May Offer Nearer-Term Opportunity than Consumer Market

Published by , November 6, 2017 12:54 pm

(Artillry) An emerging consensus is that enterprise applications represent a nearer-term opportunity than consumer markets in the AR and VR markets. That has to do with clear ROI streamlined manufacturing and assembly, and less stylistic barriers for AR glasses. “For us there are clearer benefits in the enterprise,” Presence Capital’s Amitt Mahajan says. “You can really model out what [AR & VR] mean for business, or how much it’s going to affect their bottom line and what that means in terms of a payback period for hardware investments.”
But along with enterprise benefits come challenges. For example, there can be risk for AR or VR tech providers that have non-diversified revenue (a few big clients). And there can be organizational barriers — typical for enterprise technology but heightened by AR/VR’s early stage. “Selling to enterprises takes a long time,” said DigiCapital’s Tim Merel on stage at June’s AWE conference. “When you have an education element, it takes longer. So investors in enterprise AR need to have a long-term approach.”

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