Microsoft Acquires Nuance: Paying Top Dollar To Dominate Health-Tech Sector

Must Read

3 Most Common Mistakes Social Media Marketers Are Committing In 2016

In their quest for greater sales and increased ROI, the self-appointed “digital marketing guru” has lost touch with what...

The Best Selling Smartphones Of 2016: Apple iPhone 6s Tops The Chart

Good news for Apple, as a recent report by IHS Markit found that the Apple iPhone 6S was the...

A Big Blow To Amazon and Flipkart: CCI Investigation To Continue

Flipkart and Amazon continue to find themselves in hot water as their plea against the investigation that is being...

Microsoft is all set to shell out a pretty penny to acquire the company responsible for developing Siri’s A.I.

The Redmond, Washington-based tech giant has agreed to acquire Nuance Communications Inc., a speech-recognition firm, for a whopping $19.7 billion.

This move pushes Microsoft further into the health-tech space and will widen the range of software tools it offers to its present customers.

Advertisements

Under the leadership of CEO Satya Nadella, this is Microsoft’s second-biggest acquisition. Prior to this, the big tech giant shelled out $26 billion to acquire the professional social networking platform LinkedIn back in 2016.

Based in Burlington, Mass, Nuance Communications Inc. is a pioneer in the field of speech recognition and artificial intelligence aka A.I. technology. Their software formed the basis on which the first version of Siri’s voice assistant before an in-house version replaced it.

Note here that this is not the first time Nuance has been part of acquisition talks. In 2014, the company was exploring a possible sale to Samsung Electronics Co and private equity firms. However, those discussions failed to fructify, unlike the one they held with Microsoft recently.

Note here that Microsoft has long been investing in speech systems, however, with very little success. In 2020, the company announced that it wants to shift its voice assistant offering from the consumer space and stop trying to compete with Amazon Echo and Google Assistant’s likes. And, now it seems like Microsoft is finally heading in the right direction.

Noting Nuance’s expertise in the domain of clinical documentation, Satya Nadella, Chief Executive Officer at Microsft, said that the deal reflects the surging demand for A.I.-driven tech applications in the healthcare space.

Advertisements

Nuance has spent several years building its language process engine to understand medical terminology better. Thus, Microsoft will be able to leverage it and spin out products in the health tech space very quickly. What more?

Many of Nuance’s customers in finance, healthcare, and other industries already use Microsoft products, which is definitely a plus. Back in 2019, both companies showed a lot of interest in partnering up over the use of A.I. assistants for doctor visitations. At that time, Nuance and Microsoft said that the product would be built on top of the latter’s Azure cloud service.

When the pandemic hit in 2020 and the demand for remote healthcare grew instantaneously, both the companies deepened their ties via Nuance tech’s integration into Microsoft’s workplace collaboration software suite Teams.

All in all, it is well understood that Microsoft, with its upcoming voice assistant products, wants to make a mark in health tech. This is, however, somewhat of a blue ocean sector when compared to the consumer segment for Microsoft.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Ola IPO: No Earlier Than FY23 To Make The Most of Electric Vehicle Hype

Excited by the historic response to Zomato IPO, many other Indian startup unicorns have started gearing up for IPO....

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded and unparalleled...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter, with a...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one of the...

More Articles Like This