The partnership between Meta and Microsoft will promote the mainstream use of the metaverse, says market analyst firm GlobalData.
The tech giants this week announced an alliance to bring a range of Microsoft Office 365 products into Meta’s virtual reality (VR) platform, aiming to entice companies to work in virtual environments.
The announcement was made during the ninth annual Meta Connect Conference.
During the event, Meta CEO Mark Zuckerberg unveiled Meta Quest Pro, the first in a new line of advanced headsets built for collaboration and creativity.
Microsoft chairman and CEO Satya Nadella joined Zuckerberg to announce the new partnership that will bring work and productivity tools to Meta Quest Pro and Meta Quest 2 next year.
This includes apps for Microsoft Windows 365 and Microsoft Teams, and the ability to join a Teams meeting from inside Meta Horizon Workrooms.
Said Jeff Teper, president of Microsoft Collaborative Apps and Platforms, in a blog post: “First, we are bringing Mesh for Microsoft Teams to Meta Quest devices.”
According to Teper, Mesh for Teams builds on years of research and Microsoft Cloud innovation, from Azure Digital Twins, to Dynamics 365 Remote Assist and Teams video meetings.
Work everywhere, anywhere
He explained it is designed to help people gather virtually in the place where work happens on any device, including smartphones, laptops and mixed-reality headsets.
“Mesh for Teams with Meta Quest Pro and Meta Quest 2 devices will enable people to connect and collaborate as though they are together in person.”
In addition, noted Teper, Microsoft 365 apps will be available on Meta Quest devices, enabling people to interact with content from their favourite productivity apps, including Word, Excel, PowerPoint, Outlook and SharePoint within VR.
In the future, Windows 365 will also be available on Meta Quest devices, with the ability to stream a Windows Cloud PC, including personalised apps, content and settings.
According to Teper, Microsoft Intune and Azure Active Directory will support Meta Quest Pro and Meta Quest 2, enabling IT administrators to provision these devices for users with a Quest for Business subscription from Meta, with the security and management options they expect from PCs and mobile devices carrying over to VR.
Finally, Microsoft and Meta are exploring ways to bring Xbox Cloud Gaming to Meta Quest Store, allowing gamers to stream hundreds of Xbox games to phones, tablets, PCs, select smart TVs and the Meta Quest platform.
“This partnership complements our commitment to HoloLens, and we are excited to continue evolving our mixed-reality devices roadmap, leading with our cloud-first approach, and with Windows and Microsoft 365 at the fore,” Teper said.
“All of this advances our efforts to build the foundations of a responsible metaverse, with security, compliance and enterprise-grade experiences as foundational to how we will continue to unlock new possibilities for the future of work.”
The missing link
Commenting on the alliance, GlobalData says Meta and Microsoft’s shared enterprise-metaverse ambitions are driving this tie-up.
It notes Meta is in a strong position with its virtual reality headsets, but lacks appealing software.
On the other hand, it says, Microsoft is a leader in software – ranking first out of 58 companies in the thematic screen of GlobalData’s application software sector scorecard, which scores companies in the themes that matter most to its industry. Meta ranks 22nd.
“Both Meta and Microsoft view the metaverse as the next stage of workplace collaboration. The partnership expands their offerings and should increase adoption,” says Rachel Foster Jones, analyst on the thematic intelligence team at GlobalData.
“Meta can capitalise on Microsoft’s loyal Windows 365 and Teams users, and establish a foothold in the workplace collaboration segment. Microsoft, in turn, benefits from Meta’s VR hardware to boost its own enterprise metaverse and VR gaming ambitions,” she adds.
Says Rupantar Guha, principal analyst in GlobalData’s thematic intelligence team: “VR is an important technology in the future of work, and developing enterprise-grade metaverse platforms will further enhance its appeal.
“Some of these developments include the creation of domain-specific tools for functions such as employee training, collaboration, data visualisation and customer experience.”
Guha believes enterprises will become the key market for VR over the next three years, outpacing the consumer segment, with the global market reaching $51 billion by 2030.
He points out the consumer VR segment is currently larger in terms of revenue, but the enterprise segment will begin to dominate, accounting for 62% of total revenue by 2030.
“Since its inception, VR has been heavily gaming-oriented. Meta has acquired several VR gaming studios, while Microsoft has gained from adding Bethesda’s VR games to its portfolio,” says Guha.
“Despite the optimism of VR headset makers around immersive games, VR gaming remains a small part of the video games market in both unit sales and revenue. VR games cater to a niche audience, primarily early adopters. The Meta-Microsoft partnership will attempt to develop hardcore VR gaming, which is yet to emerge.”
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