Remark Holdings Enters into Cloud Services Agreement with Microsoft

Rhea-AI Summary

Remark Holdings, Inc. signs a five-year cloud services agreement with Microsoft, expected to drive $240 million in AI business by 2029. The collaboration aims to expand sales and marketing through the Microsoft Azure Marketplace, introducing Remark's AI Video Analytics (RVA) platform. RVA offers advanced AI capabilities for security and public safety applications, leveraging Microsoft Azure Cloud and GPU Services.

Positive

• Remark Holdings signs a significant five-year cloud services agreement with Microsoft, focusing on AI business growth.
• The collaboration targets sales and marketing expansion through the Microsoft Azure Marketplace.
• Remark introduces its AI Video Analytics (RVA) platform, providing sophisticated AI capabilities for security and public safety applications.
• RVA integrates Microsoft Azure Cloud and GPU Services, enabling real-time analysis of mission-critical events.
• The agreement is projected to drive $240 million in AI business for Remark by 2029, targeting a $360 billion total addressable market in the security camera industry.

Negative

• None.

Market Research Analyst

The strategic partnership between Remark Holdings and Microsoft is poised to leverage the growing Artificial Intelligence (AI) market, which is expected to reach USD 390.9 billion by 2025 according to MarketsandMarkets. Remark's integration into the Azure Marketplace not only amplifies its distribution channels but also enhances its product's visibility to a broader range of potential customers. The projected $240 million revenue from this deal by 2029 suggests a significant growth trajectory for Remark, considering their current market capitalization is under $100 million.

Moreover, the total addressable market (TAM) for AI video analytics is substantial, with an estimated value of $360 billion excluding China. Remark's entry into this space with its SaaS-based Remark Vision Analytics (RVA) platform could capture a notable market share, especially with the backing of Microsoft's sales and infrastructure capabilities. This collaboration could also serve as a catalyst for further enterprise adoption of AI technologies, potentially leading to a ripple effect in terms of innovation and competitive dynamics within the industry.

Financial Analyst

Investors should consider the financial implications of Remark's deal with Microsoft. The anticipated $240 million in business over five years would represent a substantial increase in revenue for Remark. This figure should be scrutinized in relation to Remark's financial health and past performance. Investors should also assess the capital expenditures required for the accelerated deployment of AI services and the potential impact on the company's cash flow and profit margins.

It is essential to evaluate the scalability of Remark's AI solutions and the efficiency of their deployment on Azure's infrastructure. The ability to manage privacy and security requirements effectively will be critical in maintaining the integrity and competitiveness of their offerings. The financial success of this venture will largely depend on the adoption rate of RVA and the subsequent solutions within the six vertically-focused divisions.

Technology Industry Analyst

The AI video analytics field is rapidly advancing and Remark's RVA platform's capabilities such as weapons detection, fire and smoke detection and traffic analysis are at the forefront of this technology. The integration of Azure's Cloud and GPU Services is a strategic move that allows Remark to leverage Microsoft's advanced computing and storage capabilities, which is essential for processing large, multimodal image models in real time.

This partnership with Microsoft could be a significant differentiator for Remark in the competitive landscape, as it aligns with industry trends towards cloud-based AI solutions. The emphasis on privacy and security in deployment options also aligns with increasing regulatory scrutiny in the tech sector. The ability for customers to manage these solutions in private cloud, hybrid, or on-premise environments offers flexibility and could be a key selling point for industries with stringent compliance requirements.

Five-Year Agreement expected to drive $240 million AI Business for Remark by 2029

Remark's AI Video Analytics (RVA) Platform to be sold and marketed in Microsoft Azure Marketplace

Remark will utilize Microsoft's Azure Cloud and GPU Services for the Inference and Training of its Proprietary AI Models culminating in an Accelerated Deployment of AI Services and Empowerment of Industry Transformation

LAS VEGAS, Feb. 29, 2024 /PRNewswire/ -- Remark Holdings, Inc. (OTC: MARK), a leading provider of artificial intelligence solutions, today announced it has signed a cloud services agreement with Microsoft, to deliver cloud services via Microsoft Azure to Remark over the next five years. This collaboration allows Remark to rapidly broaden its sales and marketing through the Microsoft Azure Marketplace, providing institutional credibility for prospective IT departments' approval, as well as rapidly scaling Remark's AI inference and training models. The five-year agreement is expected to drive $240 million of AI business for Remark by 2029.

Five-Year Agreement expected to drive $240 million AI Business for Remark by 2029

Currently, there are approximately 100 million domestic security cameras and 200 million global cameras excluding China, that do not provide intelligence or AI analytics. Assuming a base case of $1,200 annual stream per camera to empower it with AI analytics, this represents a $360 billion total addressable market. 

Concurrent with the establishment of the collaboration with Microsoft, Remark AI, a business unit of Remark Holdings, introduced its first SaaS-based AI video analytics platform, Remark Vision Analytics (RVA), that integrates Microsoft Azure Cloud and GPU Services. RVA provides sophisticated AI capabilities that allow local, state, and federal law enforcement customers and private sector customers to improve public safety. Such capabilities of RVA include weapons detection, fire and smoke detection,  crowd management and safety, license plate recognition, traffic analysis, unattended objects, and abnormal behavior analysis, among other capabilities. RVA is the first in a series of strategic applications from Remark AI that provides transformational computer vision applications across six vertically-focused divisions. As part of its strategy to deliver best-in-class solutions to customers, Remark AI will release additional computer vision offerings that integrate Microsoft Azure Infrastructure Cloud Services, and GPU services. Remark AI computer vision applications support private cloud, hybrid, or on-premise deployments and are managed by the customer, ensuring adherence to privacy and security requirements and regulations. The computer vision applications from Remark AI use Azure GPU services to train Remark AI's large, multimodal image models to analyze mission-critical events or incidents in real time.

Shing Tao, Chief Executive Officer of Remark Holdings, comments, "Remark AI's computer vision technology is now validated and marketed by Microsoft sales teams around the world; this allows us to scale faster globally. With this collaboration, our ability to target larger customers and provide more robust solutions is significantly increased. Microsoft's cloud services are an integral part of Remark's AI  and allow us to widely expand the number of clients including commercial, military, and municipalities. Each of these prospective clients is seeking increased efficiencies and effectiveness by engaging Remark AI computer vision. By adding our platform to the Microsoft Azure Marketplace, we expect our offerings to be widely adopted. 

Currently, 85% of our perception, learning, and cognition are accomplished through vision which makes computer vision the most important essential part of the AI landscape. Our debut of RVA with Microsoft provides an immediate practical solution that helps our customers augment their security operations while reducing the operational cost."

"Through its integration with Azure, Remark's RVA will deliver insights and measurable value to customers worldwide," said Mike Gaal, General Manager, Enterprise Sales, Software and Digital Platforms at Microsoft Corp. "Computer vision can help improve the operating efficiency of all diverse industries from security to construction to retail."  

About Remark Holdings, Inc.

Remark Holdings, Inc. (OTC: MARK),  the industry leader in AI-powered analytics computer vision and smart agent solutions, delivers an integrated suite of AI tools that help organizations understand their customer demographics and behavior while monitoring, understanding, and acting on potential security threats in real-time. Remark consists of an international team of sector-experienced professionals who have created award-winning video analytics. The company's GDPR-compliant and CCPA-compliant solutions focus on sectors including government agencies, hospitality, public safety, retail, and transportation. The company's headquarters are in Las Vegas, Nevada, USA, with operational offices in New York and international offices in London, England. For more information, please visit our corporate home page at  www.remarkholdings.com and our product page at www.remarkvision.com

Forward-Looking Statements

This press release may contain forward-looking statements, including information relating to future events, future financial performance, strategies, expectations, competitive environment, and regulations. Words such as "may," "should," "could," "would," "predicts," "potential," "continue," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," and similar expressions, as well as statements in the future tense, identify forward-looking statements. These statements involve known and unknown risks, uncertainties, and other factors, including those discussed in Part I, Item 1A. Risk Factors in Remark Holdings' Annual Report on Form 10-K and Remark Holdings' other filings with the SEC. Any forward-looking statements reflect Remark Holdings' current views with respect to future events, are based on assumptions, and are subject to risks and uncertainties. Given such uncertainties, you should not place undue reliance on any forward-looking statements, which represent Remark Holdings' estimates and assumptions only as of the date hereof. Except as required by law, Remark Holdings undertakes no obligation to update or revise publicly any forward-looking statements after the date hereof, whether as a result of new information, future events or otherwise.

Company Contact 

Fay Tian
Vice President of Investor Relations
Remark Holdings
F.Tian@remarkholdings.com
(+1) 626-623-2000

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SOURCE Remark Holdings, Inc.

What is the significance of the five-year cloud services agreement between Remark Holdings and Microsoft?

The agreement aims to drive $240 million in AI business for Remark by 2029, expanding sales and marketing through the Microsoft Azure Marketplace.

What is Remark's AI Video Analytics (RVA) platform?

RVA is a sophisticated AI platform that offers capabilities such as weapons detection, fire and smoke detection, crowd management, license plate recognition, and more for security and public safety applications.

How does RVA leverage Microsoft Azure Cloud and GPU Services?

RVA integrates Microsoft Azure Cloud and GPU Services to provide real-time analysis of mission-critical events.

What is the expected impact of the collaboration on Remark's customer base?

The collaboration is expected to allow Remark to target larger customers, including commercial, military, and municipalities, seeking increased efficiencies and effectiveness through AI computer vision applications.

What are the key benefits of Remark's integration with Azure for RVA?

The integration with Azure allows RVA to deliver insights and measurable value to customers worldwide, improving operating efficiency across diverse industries.

What are some of the capabilities of Remark's RVA platform?

RVA offers capabilities such as weapons detection, fire and smoke detection, crowd management, license plate recognition, traffic analysis, unattended objects, and abnormal behavior analysis for security and public safety applications.