Thanks to the pending acquisition Nuance Communications, Microsoft Will soon provide a set of software tools that doctors can use to automatically record notes for meetings with patients. But Microsoft isn’t interested in automating everything doctors do, says Scott Guthrie, executive vice president of cloud and artificial intelligence at software company.
Is Pending acquisitionIs worth $ 19.7 billion, including debt, but is a rare case of a major tech company using a pile of cash to build relationships with individual industries. Microsoft’s rivals in the growing cloud computing market haven’t gotten that far yet. If this move is successful, Microsoft can turn Nuance’s customers into large users of Microsoft’s Azure cloud and strengthen its position as a market leader. Amazon..
Headquartered in Burlington, Massachusetts, Nuance is widely known in the US healthcare sector, but has room for growth abroad.On the day the deal was announced, Microsoft Said Fifty-five percent of US doctors and 77% of US hospitals use nuances, and 80% of their revenue comes from the United States. Most recent fiscal yearThis means that Microsoft can deploy Nuance in its large international customer base. 49% in the previous year Microsoft revenue from outside the United States
There are certain human medical processes that can be automated that Microsoft is not immediately interested in. For example, in recent years researchers have developed tools such as: Ask the patient Useful for diagnosing illness Detect cancer By analyzing medical images.
“We’re not going to compete with doctors and healthcare providers,” Guthrie said in an interview last week. “We want to make them more successful,” Guthrie said. And Nuance both want to partner with and integrate with other software makers and developers. The nuance is Selner And Epic Systems offers electronic medical coverage software.
Nuance’s AI capabilities could enhance Microsoft’s Teams communications app and its Dynamics 365 enterprise software, Guthrie said in a phone call with analysts in April. Microsoft can also apply nuance technology to other areas, such as conversations between financial advisors and their clients. And finally, the key metric for the success of this transaction is the growing adoption of Azure, said Amy Hood, Microsoft’s chief financial officer.
Microsoft expects the acquisition to expand the total health care target market to $ 500 billion.
Healthcare will be one of the fastest growing industries in the next decade, Guthrie said. (Deloitte Estimated Global healthcare spending is projected to grow at a compound annual growth rate of 5% from 2019 to 2023. Introduced It is a cloud tool for medical use, and soon software will be incorporated to understand conversations between doctors and patients directly or virtually.
Other cloud providers, Including Amazon, Aiming to advance into health care. But while Amazon is emphasizing its infrastructure, Microsoft and Nuance will bring a unique, doctor-centric approach, said Jeffreys analysts, who are evaluating Microsoft stock purchases, last month’s customer note. It is stated in.
“There are things like nuances, things like GitHub, things like teams, things like power platforms, not just virtual machines and containers. These are like any of the other hyperscale cloud vendors. It’s an example of a unique cloud service that you don’t see, “Guthrie said.
Adding Nuance to the lineup could make Microsoft more attractive to developers targeting the healthcare industry, he said.
The acquisition is expected to close later this year. When that’s done, Nuance CEO Mark Benjamin will report to Guthrie.
to see: Wheelhouse Chief Investment Officer Discusses Microsoft’s Acquisition of Nuance