{"id":23837,"date":"2021-04-13T05:11:23","date_gmt":"2021-04-13T05:11:23","guid":{"rendered":"https:\/\/rbsitsoftwaresolution.com\/blog\/microsoft-goes-all-in-on-healthcare-with-19-7b-nuance-acquisition.html"},"modified":"2021-04-13T05:11:23","modified_gmt":"2021-04-13T05:11:23","slug":"microsoft-goes-all-in-on-healthcare-with-19-7b-nuance-acquisition","status":"publish","type":"post","link":"https:\/\/www.rbsitsoftwaresolution.in\/blog\/microsoft-goes-all-in-on-healthcare-with-19-7b-nuance-acquisition.html","title":{"rendered":"Microsoft goes all in on healthcare with $19.7B Nuance acquisition"},"content":{"rendered":"

When Microsoft announced it was acquiring Nuance Communications<\/a> this morning for $19.7 billion, you could be excused for doing a Monday morning double take at the hefty price tag.<\/p>\n

That\u2019s surely a lot of money for a company on a $1.4 billion run rate, but Microsoft, which has already partnered with the speech-to-text market leader on several products over the last couple of years, saw a company firmly embedded in healthcare and decided to go all in.<\/p>\n

And $20 billion is certainly all in, even for a company the size of Microsoft. But 2020 forced us to change the way we do business, from restaurants to retailers to doctors. In fact, the pandemic in particular changed the way we interact with our medical providers. We learned very quickly that you don\u2019t have to drive to an office, wait in waiting room, then in an exam room, all to see the doctor for a few minutes.<\/p>\n

Instead, we can get on the line, have a quick chat and be on our way. It won\u2019t work for every condition, of course \u2014 there will always be times the physician needs to see you \u2014 but for many meetings such as reviewing test results or for talk therapy, telehealth could suffice.<\/p>\n

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Where top VCs are investing in healthcare B2B and infrastructure<\/a><\/p>\n<\/blockquote>\n

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Microsoft CEO Satya Nadella says that Nuance is at the center of this shift, especially with its use of cloud and artificial intelligence, and that\u2019s why the company was willing to pay the amount it did to get it.<\/p>\n

\u201cAI is technology\u2019s most important priority, and healthcare is its most urgent application. Together, with our partner ecosystem, we will put advanced AI solutions into the hands of professionals everywhere to drive better decision-making and create more meaningful connections, as we accelerate growth of Microsoft Cloud in Healthcare and Nuance,\u201d Nadella said in a post announcing the deal<\/a>.<\/p>\n

Holger Mueller, an analyst at Constellation Research, says that may be so, but he believes that Microsoft missed the boat with Cortana and this is about helping the company catch up on a crucial technology. \u201cNuance will be not only give Microsoft technology help in regards to neural network-based speech recognition, but also a massive improvement from vertical capabilities, call center functionality and the MSFT IP position in speech,\u201d he said.<\/p>\n

Microsoft sees this deal doubling what was already a considerable total addressable market to nearly $500 billion. While TAMs always tend to run high, that is still a substantial number.<\/p>\n

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Kofax to buy Nuance\u2019s imaging division for $400M in cash<\/a><\/p>\n<\/blockquote>\n

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It also fits with Gartner data, which found that by 2022, 75% of healthcare organizations will have a formal cloud strategy in place. The AI component only adds to that number and Nuance brings 10,000 existing customers to Microsoft, including some of the biggest healthcare organizations in the world.<\/p>\n

Brent Leary, founder and principal analyst at CRM Essentials, says the deal could provide Microsoft with a ton of health data to help feed the underlying machine learning models and make them more accurate over time.<\/p>\n

\u201cThere is going be a ton of health data being captured by the interactions coming through telemedicine interactions, and this could create a whole new level of health intelligence,\u201d Leary told me.<\/p>\n

That of course could drive a lot of privacy concerns where health data is involved, and it will be up to Microsoft, which just experienced a major breach on its Exchange<\/a> email server products last month, to assure the public that their sensitive health data is being protected.<\/p>\n

Leary says that ensuring data privacy is going to be absolutely key to the success of the deal. \u201cThe potential this move has is pretty powerful, but it will only be realized if the data and insights that could come from it are protected and secure \u2014 not only protected from hackers but also from unethical use. Either could derail what could be a game-changing move,\u201d he said.<\/p>\n

Microsoft also seemed to recognize that when it wrote, \u201cNuance and Microsoft will deepen their existing commitments to the extended partner ecosystem, as well as the highest standards of data privacy, security and compliance.\u201d<\/p>\n

Kate Leggett, an analyst at Forrester Research, thinks healthcare could be just the first step and once Nuance is in the fold, it could go much deeper than that.<\/p>\n

\u201cHowever, the benefit of this acquisition does not stop [with healthcare]. Nuance also offers market-leading customer engagement technologies, with deep expertise and focus in verticals such as financial services. As MSFT evolves their industry editions into other verticals, this acquisition will pay off for other industries. MSFT may also choose to fill in the gaps within their Dynamics solution with Nuance\u2019s customer engagement technologies,\u201d Leggett said.<\/p>\n

We are clearly on the edge of a sea change when it comes to how we interact with our medical providers in the future. COVID pushed medicine deeper into the digital realm in 2020 out of simple necessity. It wasn\u2019t safe to go into the office unless absolutely necessary.<\/p>\n

The Nuance acquisition, which is expected to close some time later this year, could help Microsoft shift deeper into the market. It could even bring Teams into it as a meeting tool, but it\u2019s all going to depend on the trust level people have with this approach, and it will be up to the company to make sure that both healthcare providers and the people they serve have that.<\/p>\n

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Microsoft is acquiring Nuance Communications for $19.7B<\/a><\/p>\n<\/blockquote>\n

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Article source: http:\/\/feedproxy.google.com\/~r\/techcrunchIt\/~3\/XJcn-Z7oWR0\/<\/p>","protected":false},"excerpt":{"rendered":"

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