Microsoft Corp.’s $16 billion deal for Nuance Communications Inc. is the most recent signal that the subsequent battleground for expertise giants will probably be in healthcare, an business whose have to embrace knowledge and software program was underscored by the pandemic.
The acquisition will assist Microsoft faucet into Nuance’s large enterprise promoting its software program to healthcare programs, in accordance with analysts and healthcare executives. Speech-recognition software program like that developed by Nuance is rising as an vital new alternative in medication as medical doctors search to hurry up documentation of affected person work with dictation quite than getting slowed down taking notes, executives mentioned.
“This coming collectively is about empowering healthcare,” Satya Nadella, Microsoft’s chief government, mentioned in an investor name. “It’s now very clear that healthcare organizations that speed up their digital investments can enhance affected person outcomes and cut back value at scale.”
The pandemic helped showcase healthcare’s potential as a progress space for tech corporations, such because the increase in telehealth companies. Microsoft can have a capability to make use of Nuance as a method to promote healthcare prospects its extra profitable services and products, similar to cloud-computing, analysts mentioned.
“The pandemic response by the healthcare business has confirmed the worth of expertise to healthcare supply,” mentioned Gregg Pessin, a senior analysis director at Gartner Inc. “All of the digital giants are paying consideration.”