 For the introduction, I'll quickly introduce my company first. We are a research and advisory firm. And we also produce even so the easiest way to introduce is you all have heard of publications like CAIO, PC World, those are published by our parent company called IDG. And we are the research wing of IDG. And we do research across different technology areas and provide advisory services, primarily to technology industry. I know the group here knows about ARVR a lot, so I would not get into the definition of what is the difference between ARVR. But our view is that it is kind of converging in probably near to medium term. To long term, it is kind of going to converge somewhere. And the reason we say that is because if you see a lot of standalone devices have come up with inside outtracking, and in fact a lot of it is getting embedded into even smartphones, we are seeing a lot of depth perception capabilities being embedded into smartphones as well. So which means ARVR is going to converge in medium to long term where it wouldn't be like that AR is only bringing digital objects into a physical world, and VR is completely concealed where you don't have any understanding of your environment. Coming to what really is going on in terms of funding, there's a good joke in Silicon Valley now that even if you speak or pass a joke about ARVR, you can probably land up with funding. It's more difficult than that. We all know that. It's just a joke, but certainly there is a lot of funding that is being driven into ARVR. In fact, very recently, there is a company called Improbable which raised about $500 million from SoftBank. It's a UK-based firm. They are about six years old, very small, but raised $500 million. And they actually develop what you can call as a virtualization software. Most of the gaming engines run on one server kind of architecture, so they are actually splitting that workloads of games into different servers. So you can think of them as Citrix or VMware from the technology industry, and they've done it for the gaming industry. So if you're doing something different, there is, of course, money there. HTC has committed their Facebook closed its own content studio, which may be good news for some of us here. And they are going for a funding model there, so they have committed to $50 million for there. So certainly there is a lot of money, but of course, one need to differentiate there in terms of technology or, of course, there is great content which is being built. Pokemon Go actually earned $1 billion. They raised $1 billion revenues. And this is the fastest ever that any game had reached. And we know there was a big craze around it, so certainly that proves the potential. That there is a lot of potential in ARVR, which Pokemon Go proves. And certainly, Porto Comongo has a very interesting business model as well, that besides gaming, they also provide these gyms that we are all aware of. So they partnered with McDonald's. They started in Japan, and then they went ahead with a number of similar partnerships, which is, again, a business model where they are not just making revenues. It's a freemium model where they are giving games for free, but they are making money in other ways. To next in terms of now, a lot of enterprise software vendors, large vendors, are actually getting interested. So Adobe has actually just about a few weeks back acquired a company called SkyTool, which many of you would be aware of. They actually are basically a VR toolkit, which actually helps you create. So they are integrating it with their even creative cloud, which means a lot of marketing will have, which where Adobe is a preferred platform, will have ARVR capabilities. Similarly, Oracle is doing that. We know Windows 10 is talking big about 3D, so it is natively going to come to a lot of offices which are running on the Windows platform. So certainly, it is going to kind of reaching towards mainstream. We already know that Apple has launched ARKit, which is good news. And they have been shying away from it for a long time, but kind of agreed that, yes, they would launch ARKit, which will spur a lot of development into their existing infrastructure, which is smartphones and tablets. So that is one area, certainly, that a lot of people are looking at. And of course, in China, Baidu is just a similar platform. There's a similar platform. Google Lens is coming to a number of devices, and Google has launched Tango. So certainly, it is kind of going democratic in terms of a number of devices that are available out there. Now coming to the important question, so how big is the market? And we predict, and this is based on our annual prediction. It actually is semi-annual, so we do it twice a year. This was based on February data. We look at various sectors, and it's a bottom-up model. So we look at use cases. We look at industries, and there are about 26 use cases as of now. But there are others which are use cases that we have looked at, and we look at a number of data that we have. So it includes hardware, software, and services. It is going to actually grow from almost kind of double from 2016 in 2017 to about $13 billion. That includes all of hardware spent as well, and we are not counting any cardboards there. So the growth is kind of going to be exponential, as you can see, which are the sectors which are actually adopting it faster than others from an enterprise perspective. Certainly, personal and consumer services is one of the drivers. But retail is one of the areas which will drive highest spending. We already see a lot of retail stores which are including virtual mirrors or even a lot of e-commerce websites which are including avatars or how you can actually try a cloth or spectacles. Those kind of services are already getting embedded into existing platforms. And we will see some of the examples on the next slide. But Asia-Pacific is going to be one of the largest regions as well on a geographic basis. In fact, it will grow much faster than a lot of other regions because of the existing infrastructure that is available in this space. So what will be the spending? What are organizations or people achieving out of this? So there are certainly a lot of areas where AR, VR is being applied. And these are actually the drivers for AR, VR. These are new products and services which are being developed. Korea has a cafe called VR Plus. They don't charge for VR experiences. They charge for coffee. And that's their business model. But it's called a VR cafe. So certainly, their business is VR. Similarly, Lotte in South Korea, again, is a retail store where they're using a lot of VR VR solutions in store. Interactive solutions, certainly, in terms of if you look at workstations. And we know in Singapore, there are a lot of traders. So a trader would generally have like five, six screens. And he's trying to toggle between these screens to put orders. So GMO Click in Japan has created basically a VR application where you can do all the trading in basically a VR headset. So that's the kind of imagination that is going on. And it's not just happening in Japan. Citibank is kind of working on it. There is another Swiss bank called Swiss Code which has already launched this service. And these are commercially available services. So you have a VR headset. So you are actually virtualizing the entire desktop environment. And you are putting all those six, five screens, whatever you have in one screen, which is a VR headset. And this is, again, as I said, commercially available today. You can go to their website and actually download their application. Of course, in terms of training and collaboration, that's another big area. A lot of enterprises are looking at training and collaboration. And that is certainly one area where a lot of opportunity for developers is for content creators is because even enterprises will look for a lot of training content. So gaming is certainly one. There is also gamification, which is important in enterprises, where they are looking at how they can actually gamify and actually look at a lot of training content to be interactive. And these are actually enterprises, for example, from financial services, from oil and gas, and a number of other sectors which are looking at this. So that's another big opportunity area in terms of training and collaboration. So Microsoft, for instance, has partnered with Pearson, which is a large content provider, learning and content provider. But there is certainly content is something, especially from a training perspective, which is very localized. So every country has different nuances in terms of language, in terms of mannerism. So certainly, there is a huge opportunity in terms of training and collaboration, as well, from training perspective. And this is kind of the ecosystem, if you look at. Very quickly, certainly we know on the lowest level there are headsets. That is also, it's not just headsets, but a lot of haptics and other devices, simulators, actually unidimensional, or actually treadmills, where you can actually walk anywhere. So those kind of treadmills are coming up as well as sensors. But what is also interesting is there are a lot of sector applications on top, you can see, which is towards health care, retail, there are a number of other sector-specific applications, even in industrial sectors that are coming up. In fact, there is a company called GSD in Australia. It's an industrial consultancy. It actually acquired a VR content firm so that they can offer, basically, VR-based industrial consultancy services. Deloitte in Australia also acquired a VR company called KidNeon so that they can offer it to their customers. So what are the challenges? I think most of us know what the challenges are. But what we hear from a lot of enterprises and customers that I meet is around, of course, content. It's kind of a challenge that has been spoken about a lot of times. I will not focus more on that. But imperfect experience is another one that has been talked about. There are issues around weight, dizziness, et cetera, et cetera. But there are a lot of opportunities if you see on the right-hand side, because this is kind of, a lot of these are related. As technology kind of advances, a lot of these will get solved. Certainly, there will be more momentum in terms of skill development and growth that we see. And of course, these kind of meetups help there, get more people interested in it. There will be a lot of disintermediation, as we have seen in the case of internet era, where internet emerged as a platform and a lot of businesses emerged out of it. So we are seeing that's kind of a natural progression where ARVR is moving towards, where it is emerging as a platform. Alibaba launched a store. It was a VR store, and it was kind of very popular during the Singles Day sale last year. And in fact, the sales were highest ever. So you could actually, what they launched was that they brought a number of stores from which are very popular, like Macy's in the US, into this virtual reality platform. So you can actually walk into the store in Macy's New York, and you can select bags or whatever you want, goodies there. Entertainment and out-of-door VR is certainly again gaining traction. We see a lot of companies that are in warehouse and other out-of-gaming that are very successful. But I think the biggest impact will be mobile-based ARVR, because there's a huge infrastructure that is already available. People, it's easy to actually consume. And a lot of, if you see examples like Google Tango where it is being embedded, a lot of technologies like depth perception is being embedded will actually improve the experiences on even smartphones, smartphone-based ARVR. So in the near term, that will certainly be a big driver. All right, so certainly there are a lot of opportunities. So what are some of the risks? And this is not to scare anyone, but just to give some example in terms of what really should be one careful of when you are building content. I would not talk about health and safety, because we all know people have done crazy things for Pokemon Go, so that's kind of well understood. In fact, there were two brothers who in US actually crossed over to the Canada while playing the game without realizing all sorts of crazy stuff. But ethics and privacy is one area where one need to be very sure of in terms of what they are building. A lot of lawsuits might emerge there. Similarly, financial compliance, a lot of games utilize coins or virtual currency. So that is one area where one should look at in terms of, because for example, in Japan, the financial services authority there actually is trying to regulate the games or even the, for example, poker coins, right? So virtual currency there will be regulated and one has to actually report and put it into bank accounts. So that is going to take place there. And of course, intellectual property and religious beliefs. So there were lawsuits against Pokemon Go in certain countries because they had put these gems or basically where you could go were also in areas like crematorium and memorials. And they were actual lawsuits. So sometimes even religious places are part of worship and somebody got offended so anyway. But there were actually lawsuits that were filed against Pokemon Go. And here are some examples. The first one I already mentioned, Japan is going to regulate virtual currency that is being used and a lot of games have some sort of virtual currency. There are child protection laws which actually apply there because a person, an underage person may be very keen to buy a lot of this. And we have seen that happening in case of, for example, even areas like Amazon where kids have ordered, for example, toys or other things from Alexa. And those kind of issues have emerged. Similarly, a very good example is for electronic arts where they utilize the football. This is for college football. The characters in the game, very popular football series from electronic arts and they actually paid $40 million to settle the lawsuit because the athletes were lookalikes of the actual players but they were wearing the same jerseys but they were not paid royalties and they were not using the same names. So finally they settled the lawsuit. So that's one area. And of course, I think the third one is more from an enterprise perspective but there would be a lot more, that's from health and safety perspective where enterprises see that there could be a lot of insurance and other kind of risks that will emerge. Also there are talks about psychological risks and others but I think it's still early days in terms of determining are there real risks because even in healthcare, VR is actually helping solve a lot of medical problems. It's being used in therapy today. It is also helping solve a lot of psychological problems. So I think that is kind of overstated but certainly health and safety risks is something that is more for enterprises to look at. If people are using these tools, they are not getting hurt, not really for developers. And finally, I think to summarize, I think it's not just about creativity. I think a lot of enterprises and business leaders that I meet even in marketing, they talk about that one could be very good creatively but if there is no story, there is no soul in it and there isn't something that we can take to customers even from a marketing perspective. So certainly it's more important in gaming and other forms and everything is a service so it is good to productize a lot of solutions that you have because there's a lot of euphoria now. Some of the startups that I have met are saying that we have more demand than we can meet but that is not going to last. So if you are creating a solution platform that is going to help you because that will be recurring revenues for you because everything is available as a service. Probably best way is to productize and offer it as a service over a long period of time where you go for a pay as you go model. And finally, technology is changing very rapidly so certainly keep your options open without over investing in the near term over or signing up for just one technology area or developing something grounds up for one technology area. And certainly keeping that open mind in terms of what is coming up will also help embrace new technologies, not just being locked down but certainly embrace even new technologies. With that, I will end. And if there are any questions, happy to take any questions. All right, thank you. Maybe questions. No questions? Are going to converge at some point of time. I didn't really get like, what do you mean by that statement? Yeah, so if you see today the way AR is defined is, you know, we defined it as, okay, you're bringing digital objects to your physical environment, right? That's about how you define what is augmented reality. You're bringing digital objects to your physical environment. And virtual reality in its simplest sense it was when you are completely concealed. You know, you don't have an understanding of your physical surroundings. That's, you know, you bring a completely virtual environment around you. But if you see a lot of devices now that are coming up or if you look at even from a roadmap perspective they're talking about inside out tracking which means you have, you know, understanding of the physical environment. And that is also kind of desired. A lot of, you know, so one of the challenges there is that, okay, when you are cut out from the physical environment, you are actually exposed to a lot of physical hazards or, you know, safety hazards out there, right? So the point is that, you know, it would not be AR or VR, it will be kind of mixed reality, like say what Microsoft calls it, or, you know, merge reality, what Qualcomm calls it, or, you know, hybrid reality or any other form of reality, but it will not necessarily be just, you know, like the Chinese walls of, okay, AR is bringing physical, you know, digital to physical and, you know, virtual. VR is completely virtual. Exactly. There would not be, you know, completely pure VR. And that's also kind of desired if you see, you know, in a lot of inside out tracking devices, they come with front facing cameras, they come with, you know, more sensors are getting embedded there. Okay, any more questions? Okay, I have one question. I mean, many of our members here are actually working on giving a lot of feedback. Okay. Okay. Yeah, I mean, many of the members here do work on the VR applications or different verticals and industries applications. So, and you did share some of the challenges on the adoption side, but what do you think are the biggest challenges for industry adoption of virtual reality technology? So from an enterprise perspective, I think, you know, people are understanding the value in terms of, you know, for marketing and advertisements, for instance. So there are people have understood that, okay, there is a business case here. We need to do this, right? But if you look at, you know, in other areas, there are not even solutions out there. In fact, a lot of, you know, CIOs are even very of, for example, as I said, you know, investing because they know if I'm going to invest in this technology today, tomorrow the technology, you know, can be, you know, something better is coming. So there is kind of one reluctance there in terms of investing because if you see from a, you know, enterprise technology perspective, they invest, you know, in a three-year kind of timeframe. You know, even for devices, minimum of three-year kind of timeframe. But if you see that, you know, it's something better is going to come next fall or in the next three months. So there's some form of reluctance. And the second most, you know, important factor there is that if you look at a lot of enterprise software vendors, you know, they are only, they have only begun to now look at it seriously. As I said, you know, Adobe added in October last year tools for marketing while I'm sure a lot of people, you know, even in the audience here would have been developing marketing videos for like, you know, two, three years, at least for VR, right? But Adobe did not do it, you know, until now because they were kind of, you know, wait and watch kind of, I think, a tendency that, you know, a lot of enterprise vendors have because they make huge investments and then they go after it. So that is the second one where there are not a lot of solutions which are available for enterprises. And they know that, you know, there are mixed signals that are coming up. Okay, it is successful. It is not successful. So, you know, that is kind of, you know, what is playing out in the mind, right? Right now. So during my work, I actually stumbled upon a lot of CIO of the enterprise world. So because for me, focusing on enterprise VR. So when I talk to them, they always ask the question, actually most of them will ask this question, how long will you think this hardware will last me for? Is it five years? Is it three years? I always counter it by saying that, you know, for HTC Vive, it's actually pretty good because it's, you can add on like lenses, they got the auto stripe, you can just add on it. So actually if they, most study wouldn't be updating the, the newer version of HTC Vive, that's when that means they're gonna replace it. So mostly it's just add on. So this is just one way for me to counter that. Do you have any suggestion on that? Because that will make it easier for people that is working on enterprise VR to get the CIO on board so that the thing can start to use our software. Sure, I think that's a, you know, very good point. But if you see, you know, when I talk from an enterprise perspective, it is, you know, large enterprises have other, you know, issues, right? So for example, they have to write down, you know, every piece of hardware that they buy for five years. So that, that is not something that, you know, actually three years based on regulations in each country that they operate in, that they will have to write it down. But I think, you know, whenever the question is around hardware, unless you are, you know, kind of selling and bundling hardware, the conversation should be kind of away from it. You should draw the conversation away from hardware to what your platform can do. And you have to, you know, build that confidence that you are looking at what is happening on the hardware ecosystem. Your platform is kind of hardware agnostic because, you know, if you're offering it as a platform, you really don't want, you know, to get into that conversation, to guide that which is the best hardware. And, you know, if you stay away from that discussion, you can give, you know, like, suggestion of these three are the best, or, you know, that would work on our platform. But you can always say that we are looking at hardware. So whichever hardware you buy tomorrow, I am telling you that my platform will work on, you know, because my platform is hardware agnostic. My solution is hardware agnostic. Easier said than done. But, yeah, I think, you know, that's what you should, you know, go after. Okay, so I think we'll move on to the... I mean, if you have more questions, after the talk, obviously, I have some time you can actually grab hold of Avinesh. So, okay, we'll thank Avinesh for the great talk.