Microsoft (MSFT)-Sony AI-Camera Deal to Boost Business Yield

Microsoft MSFT recently inked a deal with Sony Semiconductor Solutions (Sony) aimed at delivering solutions to aid enterprises avail the benefits of AI-driven smart cameras with robust video analytics capabilities.

Microsoft Azure AI, Azure IoT and Cognitive Services capabilities will be integrated with Sony’s intelligent vision sensor IMX500 in a bid to obtain meaningful inference from data generated by images in smart cameras.

Microsoft and Sony are striving to enable enterprises create new business opportunities via democratization of high-speed edge AI processing and access to computer vision offerings.

The latest deal is a big win for Microsoft as Sony’s image sensors boast of notable customer base, which includes Apple AAPL and Samsung. Thereby, the new development provides the tech giant with a significant exposure in the smart camera market.


Robust utilization of Microsoft’s offerings is instilling investor confidence in the stock. Notably, shares of the company have returned 17.2% year to date, outperforming the industry’s rally of 8.8%.

Combining AI and Imaging Holds Promise

Sony’s smart camera managed app complements its IMX500 sensor and utilizes Azure IoT and AI capabilities to process key workflows, while maintaining data privacy and security. The app is also designed to aid enterprise customers to seamlessly train and deploy AI models, and obtain data-driven inference via video analytics capabilities.

This integration will aid businesses automate workflows, and save time and costs, while ensuring data security, hence driving operational efficiencies with optimal mix of resources.

The latest solution is well poised to witness traction across industries including automotive, retail and logistics services, which are increasingly adopting advanced technology solutions to stay competitive. These companies utilize AI-driven solutions to automate their complex business workloads, and boost efficiency and productivity.

Moreover, customers can utilize the smart camera to optimize inventory and boost factory automation and streamline asset management. The solution can also find application across public surveillance amid COVID-19 crisis, smart cars vertical, and other augmented reality applications.

Growth Prospects Bode Well

Rise in demand for quality inspection, vision-driven automation and robotic systems have fueled adoption
of advanced AI cameras and computer vision systems.

Per a Market Research Future report, as stated in a MarketWatch article, AI Camera market is expected to hit $21.58 billion by 2025, at a CAGR of 23.8% from 2018 to 2025. Moreover, the computer vision market is expected to reach $17.4 billion by 2024 from $10.9 billion in 2019, at a CAGR of 7.8%, per MarketsandMarkets data.

The aforementioned reports strengthen the prospects of investment opportunities in the new solution backed by advanced image and video analytics capabilities, and augur well for both Microsoft and Sony over the longer haul.

Zacks Rank & Stocks to Consider

Microsoft currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector include Bandwidth BAND and Nutanix NTNX. Both stocks sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The long-term earnings growth rate for Bandwidth and Nutanix is currently pegged at 13.55% and 8.93%, respectively.

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