Microsoft Makes a Nuanced Purchase to Expand into Healthcare

In an increasingly rare regulatory win for Big Tech, Microsoft (NASDAQ: MSFT) announced on Friday that its planned purchase of Nuance Communications had finally cleared the last hurdle.

So, with the $20 billion deal now ready to close, what can we expect from Microsoft’s latest venture?

The future of healthcare

Nuance is already a leader in healthcare technology, with more than 77% of U.S. hospitals trusting it to provide tech-based solutions to their specific problems. An example of one of the issues Nuance already helps with is using AI to automate the production of clinical reports. This practice alone has reportedly led to a 70% reduction in physician burnout.

Microsoft aims to combine Nuance’s vast experience in AI and ambient intelligence — specifically in the healthcare field — with its own significant cloud infrastructure. This will provide customers with a combination of domain-specific tech that has the backing of one of the world’s deepest cloud networks. 

This announcement, coincidentally, comes only days after major rival Amazon (NASDAQ: AMZN) announced its own sharper focus on healthcare through a partnership with virtual healthcare provider Teladoc. Big Tech clearly has designs on infiltrating the world of health, but why should investors care?

Well, healthcare has historically been quite a slow industry to pivot towards tech solutions. The COVID pandemic made this glaringly obvious, as people demanded digital services in a way previously unimagined. Legacy players in the industry were forced to seek out technological solutions fast, and who better to turn to than some of the world’s largest companies.

Apple, Google, Amazon, and Microsoft all have skin in the game when it comes to healthcare. With the industry now accounting for 20% of U.S. gross domestic product (GDP), it’s easy to see why these tech titans are battling to become the biggest name in health.