Yes, Connected Store requires a gateway to be installed and implemented at your store location. The current gateway is a 1U appliance and can fit in a standard 19” datacenter rack.
We will support a turnkey implementation for our customers. This means that Microsoft can recommend a set of SI's who can install your cameras and set up the gateway for you.
Additional details about the gateway can be found here:
https://docs.microsoft.com/en-us/dynamics365/connected-store/ase-install

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