The research report states, "Microsoft has formalized their strategic technology partnership with Viscount to include revenue sharing when new end-user business comes in from the marketing programs and support provided by Microsoft Global Security. The revenue share agreement with Microsoft is a major milestone for Viscount. It significantly strengthens the company position in the market going forward and provides a platform for lead generation for Viscount's IP-based "Freedom" access control security system. Over the past year, Microsoft has been testing and using Viscount's Freedom security system at one of the main buildings associated with its Global Security Operations Center (GSOC) on the Microsoft campus in Redmond, WA. This announcement comes on the heels of Viscount becoming a technology partner to Microsoft Global Security earlier this year."

The Soundview report goes on to comment, "In previous research reports, we have noted there is a major trend underway to migrate access control technology into the cloud as way to increase security, enhance functionality, and keep a lid on costs. In October 2011, Viscount announced that its Freedom access control technology was the first access control solution to run on Microsoft's Azure cloud platform. For Viscount, Microsoft brings a wealth of credibility in both the enterprise and government segments - core markets for Viscount. Potential customers seeking to migrate their security to the cloud will no doubt to take note of Viscount's status as a best-of-breed access control security vendor by Microsoft. With Viscount's Freedom security system, Microsoft offers clients a best-of-breed access control solution that yields enhanced functionality over conventional systems and at significantly reduced cost. That's a value proposition that is difficult to beat in any market."

The report concludes, "Our current intrinsic value (IV) estimate for VSYS is $0.38 per share for 2014, suggesting there is a great deal of value creation potential ahead for Viscount in the year ahead. The revenue share agreement with Microsoft is a key milestone that puts the company in a potential to experience a break out year in 2014. It will take a few months to ramp up and begin to harvest the fruits of the Microsoft partnership, but management is confident in its ability to execute and deliver the goods in the year ahead."