Microsoft’s Military Empire, Explained - Summary

Summary

The video discusses the role of Microsoft in the US military's technology strategy, focusing on its involvement in the development of the Integrated Visual Augmentation System (IVAS), a project that aims to equip soldiers with augmented reality headsets based on the Hololens technology. The video traces Microsoft's history, starting from its founding by Bill Gates and Paul Allen, and their early focus on distributing Windows to enterprise customers. It highlights Microsoft's shift towards enterprise cloud computing, noting that the Department of Defense (DoD) was one of their largest customers. The video also discusses the controversial Joint Enterprise Defense Infrastructure (JEDI) contract, which was initially awarded to Microsoft but was later canceled and replaced with the Joint Warfighter Cloud Capability (JWCC) contract. The video concludes by emphasizing that, despite setbacks, Microsoft has become one of the US military's most trusted vendors due to its focus on reliability and effectiveness.

Facts

1. The narrator was researching Google's work with military drones and noticed something unusual: an Air Force officer flying a $60 million drone using an Xbox controller.
2. This led the narrator to reflect on how the US has traditionally relied on access to the best technologies, and how American tech companies like Google and Microsoft have turned their backs on the US military.
3. Microsoft, however, has taken a different approach, using its strengths to build a military empire.
4. Microsoft is trying to completely change the nature of warfare, but not everything has gone as planned.
5. Bill Gates, co-founder of Microsoft, was instrumental in this transformation, running the company like a general in wartime.
6. In the mid-90s, the US Navy sought Bill Gates's help to develop an operating system for their warships.
7. Microsoft proposed a bespoke version of Windows NT 4.0, which was adopted by the Navy.
8. However, in 1998, a system failure on the USS Yorktown aircraft carrier led to criticism of the Windows for warships program.
9. Despite these setbacks, Microsoft continued to grow, becoming the world's biggest company by 1999.
10. By 2001, Microsoft had lost 60 percent of its value and was struggling to deliver high-quality products to the military.
11. Microsoft's core identity was lost as it diversified into various areas, including consumer Internet and mobile devices.
12. In the early 2010s, Microsoft introduced the Xbox Connect and the first HoloLens in 2016.
13. Microsoft won a massive $22 billion dollar contract for a project called the Integrated Visual Augmentation System (IVAS), which aims to equip US soldiers with augmented reality headsets.
14. Despite facing numerous challenges and setbacks, Microsoft and the US Army are determined to make IVAS work.
15. Microsoft's history with cloud computing dates back to 2006, and by 2010, they had released the Azure cloud computing platform.
16. The US Department of Defense launched the Joint Enterprise Defense Infrastructure (JEDI) project, a $10 billion commitment for cloud services, which was won by Microsoft over Amazon.
17. Microsoft's win in the JEDI contract was controversial, with Amazon filing a lawsuit against the government over the decision.