Microsoft’s purchase of Nuance Communications will strengthen its enterprise strategy, says GlobalData

Following the news that Microsoft has acquired conversational platforms specialist Nuance Communications;

David Bicknell, Principal Analyst, Thematic Research at GlobalData, a leading data and analytics company, offers his view:

“Conversational platforms is one of the most commonly used artificial intelligence (AI) technologies and one of the most significant themes expected to have a massive impact on all industry sectors. GlobalData’s Thematic Scorecard for the application software sector clearly shows that both Microsoft and Nuance are strong in the AI theme.  Adding Nuance’s capabilities will only increase Microsoft’s AI strength. Nuance is also very strong in conversational platforms, particularly for healthcare providers, suggesting its expertise will undoubtedly strengthen Microsoft’s enterprise strategy in the lucrative healthcare industry.

Dr. David Brown, GlobalData Senior Healthcare Analyst, commented:

“Microsoft’s acquisition of Nuance is a major move into the healthcare AI space. Microsoft is surely looking to capitalize on a healthcare market that is hungry for better patient outcomes, reduced costs and higher personnel efficiency. COVID-19 has levied a heavy toll on healthcare providers and patients alike. Nuance’s conversational AI and EHR expertise, coupled with Microsoft’s cloud capabilities, are perfectly positioned to enhance patient care, increase the amount of time physicians spend caring for patients, and ensure seamless coordinated and connected patient care.”

GlobalData’s M&A in Tech, Media, and Telecoms (TMT) – 2020 Themes report, published in January 2021, foresaw Nuance’s acquisition. The company said that voice was the next big computing platform and predicted that Nuance’s independent platform would appeal to any manufacturer or services company that did not want to be beholden to Amazon or Google, Bicknell added.

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