UPDATED 13:41 EDT / JUNE 14 2018

EMERGING TECH

Report: Microsoft is moving to challenge Amazon’s automated grocery stores

A team of engineers at Microsoft Corp. is reportedly pursuing an initiative to develop technology for a new generation of automated, cashier-free stores.

The effort, which was revealed by Reuters this morning, appears to be a direct counter to Amazon.com Inc.’s Go retail automation project. According to one of the news agency’s sources, Microsoft has even poached a computer vision expert who had worked on the e-commerce giant’s rival initiative.

Few details are available on exactly what the team is building. However, the report did specify that some of Microsoft’s efforts have focused on attaching cameras to shopping carts as a way to track what items each customer picks up. Reuters’ sources also said that the company is looking at making users’ mobile devices a part of the shopping experience.

All this would suggest that Microsoft’s automated stores could end up looking a lot like those Amazon is building. At the e-commerce giant’s inaugural Amazon Go location in Seattle, customers only have to scan their smartphones upon entry and can then simply grab what they need without going through a checkout line. Artificial intelligence models running behind the scenes analyze camera footage to bill each shopper based what items they leave with.

Yet while Microsoft’s project may share technical similarities with Amazon Go, the company is reportedly taking a much different business approach. Rather than operating automated stores directly, Reuters’ sources said, it hopes to sell the technology to established retailers.

Microsoft has reportedly held demonstrations for potential partners from around the world. According to the tipsters, the company has even engaged Wal-Mart Stores Inc. about a potential collaboration.

Walmart’s interest in the project wouldn’t be surprising if the report proves true. The retail giant is one of Amazon’s biggest rivals and has been trying to step up its competitive efforts recently. Last month, for instance, Walmart paid a massive $16 billion for a majority stake in Flipkart Group, the leader of the strategically important Indian e-commerce market.

For Microsoft, developing a store automation platform could potentially allow it to strike lucrative new deals with retailers hoping to push back against Amazon. In fact, this market already seems to be generating revenue for the company. Reuters reported that a half-dozen partners are currently building cashier-free checkout systems and related applications on Microsoft’s Azure cloud platform.

Image: Pixabay

A message from John Furrier, co-founder of SiliconANGLE:

Your vote of support is important to us and it helps us keep the content FREE.

One click below supports our mission to provide free, deep, and relevant content.  

Join our community on YouTube

Join the community that includes more than 15,000 #CubeAlumni experts, including Amazon.com CEO Andy Jassy, Dell Technologies founder and CEO Michael Dell, Intel CEO Pat Gelsinger, and many more luminaries and experts.

“TheCUBE is an important partner to the industry. You guys really are a part of our events and we really appreciate you coming and I know people appreciate the content you create as well” – Andy Jassy

THANK YOU