Enterprise AR redux: Will Apple succeed where Microsoft floundered?

When Scandit announced its integration with Apple’s Vision Pro mixed reality headset, I experienced a strong sense of déjà vu. This enterprise software provider, known for its smart data capture solutions that turn everyday smart devices into powerful barcode scanners and more, had just aligned itself with a device receiving a lot of attention, particularly in the consumer tech world.

My mind immediately jumped back to 2017. The Microsoft HoloLens headset was the centre of attention in the Augmented Reality (AR) space at that time, promising to revolutionise everything from how we view the planet Mars to how we conduct industrial maintenance. I remember being quite impressed after a HoloLens demo, which prompted me to write an article entitled “Is HoloLens a serious business tool?”, speculating on a future in which field technicians could pull up holographic manuals or remote experts could guide on-site staff through complex procedures.

History rhymes

Fast forward to 2024, and here we are again. Earlier this year, the Apple Vision Pro “spatial computer” finally made it to market after its initial announcement in mid-2023. But despite its impressive tech specs, it’s facing hurdles that feel all too familiar. An eyebrow-raising price tag of $3,500, no obvious ‘killer app’ or use case, and questions about its practicality for extended everyday use have led to lower-than-expected demand.

It’s tempting to view this as history repeating itself. But perhaps there’s a more nuanced take here. While both HoloLens and Vision Pro have struggled with mainstream consumer adoption, they’ve inadvertently raised an interesting question about which device characteristics matter, and how this differs by type of user and usage scenario.

Enterprise needs vs consumer wants

This is where Scandit’s move becomes particularly interesting. Its smart data capture technology helps businesses streamline operations by turning smartphones into powerful tools for tasks like inventory management, order picking, and even ID verification. These applications don’t necessarily need the bells and whistles of a high-end consumer device.

For many industrial and retail applications, what matters most is a device that can be worn comfortably for extended periods, with specs that are ‘good enough’ to deal with the job at hand, and a battery that lasts a full shift. Weight, comfort, and practicality often trump cutting-edge features in these settings.

In fact, Apple’s rumoured plans for a cheaper, tethered version of the Vision Pro might accidentally hit closer to the mark for these kinds of enterprise applications. By offloading some processing to an iPhone clipped to the user’s belt, for example, such a device could potentially be lighter and more comfortable for extended wear – crucial factors for widespread adoption in business settings.

That being said, I think it’s important not to assume that AR must come in the form of an immersive, goggle-style headset. For many business use cases, a less obtrusive form factor – something closer to smart glasses – might be more practical and acceptable. Ultimately it will depend on user need and the conditions in which the device is being used, and it will be interesting to see what reaches the stage of ‘enterprise readiness’ over the next 2-3 years.

Looking ahead

In the meantime Scandit’s integration with Vision Pro is a smart move, and an important one. Given the nature of its core business, the company really does need to position itself effectively in the enterprise AR arena. In this respect, it does have a clear advantage in that its solutions are inherently software based. The company has a strong track record of device and operating system portability, so what it learns from working with early AR wearables can, hopefully, be carried forward to other emerging devices and form factors as the market evolves.

Zooming out, my feeling is that enterprise AR isn’t mainstream ready yet, but the current technology is promising, and certainly good enough for proof of concept work. Use cases are becoming clearer, and with vendors like Scandit and others laying the groundwork from an application perspective, it’s certainly not something to put off indefinitely, despite the media scepticism we’re hearing at the moment. When the tech is ready, based on my experience in the front line worker space, I anticipate the ROI on AR investments in a business context will be greater than many seem to be anticipating at the moment.

Dale Vile

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Dale is a co-founder of Freeform Dynamics, and today runs the company. As part of this, he oversees the organisation’s industry coverage and research agenda, which tracks technology trends and developments, along with IT-related buying behaviour among mainstream enterprises, SMBs and public sector organisations.