Microsoft is to acquire artificial intelligence and cloud computing company Nuance for $19.7 billion (roughly Rs. 1,47,900 crores), bolstering its healthcare presence with a leader in voice recognition technology.

Nuance’s technology includes a conversational AI tool versed in specialised medical terms, freeing physicians from note-taking, and allowing better patient-physician interactions in person or in the telemedicine appointments that have taken off during the pandemic, executives said.

Nuance’s programme “has completely redefined clinical documentation by capturing and contextualising every words of the physician/patient encounter and automatically documenting it,” said Microsoft Chief Executive Satya Nadella during a briefing Monday.

Nuance’s technology is used extensively in medical records and is currently employed in more than three-quarters of US hospitals, Microsoft said in a news release. The transaction is all-cash and the sum includes Nuance’s net debt.

Nuance’s technology is currently used by more than 55 percent of physicians and 75 percent of radiologists in the United States. Microsoft said the deal would double its potential healthcare market to nearly $500 billion (roughly Rs. 37,53,880 crores).

This acquisition builds on the existing partnership between the two companies, which have been collaborating since 2019 in telemedicine, a sector whose growth has been spurred exponentially by COVID-19 lockdowns around the world.

Last year, the Redmond, Washington-based giant integrated Nuance Communication’s Dragon Ambient eXperience programme into its Teams communications software, which enables remote transcription of medical conversations.”

Microsoft also sees potential to expand the technology beyond health care. For example, the similar AI transcriptions could be employed by financial advisors, said Scott Guthrie, executive vice president for Microsoft’s cloud and AI group.

“Nearly any professional service could benefit from real-time engagement converted into material intelligence that drives actions,” Guthrie said during an investor presentation.

“Every customer I talk to is looking to make the right decision at the right time for all of their stakeholders.”

‘No brainer’
The deal comes on the heels of Microsoft’s 2016 purchase of LinkedIn for $27 billion (roughly Rs. 2,02,620 crores) and represents “the latest step in Microsoft’s industry-specific cloud strategy,” the company said.

Like other technology heavyweights, Microsoft has been a big beneficiary of the economic dislocations during COVID-19.

The company’s earnings jumped by 33 percent in the latest quarter to $15.5 billion (roughly Rs. 1,16,320 crores) and included a boost from cloud computing and personal computing, including its Xbox video games.

Wedbush analyst Daniel Ives called the Nuance tie-up a “trophy” deal for the company founded by Bill Gates, which is on a “strategic offensive” in search of targets to buy.

“For Nadella & Co, this is the right acquisition at the right time with Microsoft doubling down on its healthcare initiatives over the coming years,” he said in an analysis. “The Nuance deal is a strategic no brainer in our opinion for MSFT and fits like a glove into its healthcare endeavors.”

Based in Burlington, near Boston, Nuance was founded in 1992 and specialises in conversational artificial intelligence solutions, particularly in the healthcare sector.

Nuance Communications, which employed more than 7,100 people as of September 30, reported sales of $1.48 billion (roughly Rs. 11,110 crores) last year.

Ives said Microsoft is on the hunt for more acquisitions and this deal “could be the first step in an increased appetite for deals in 2021 with Discord (video game chat community) another potential trophy for Redmond.”

It comes just a few months after the takeover of ZeniMax, the parent company of video game publisher Bethesda Softworks, for $7.5 billion (roughly Rs. 56,300 crores) in September.

Media reports cite the potential for other big deals, including crafting platform Pinterest in a possible $51 billion (roughly Rs. 3,82,840 crores) transaction, and the popular Discord discussion platform for about $10 billion (roughly Rs. 75,070 crores).

Skills development and training experts Amazon Web Services (AWS) re/Start and IN4.0 Group are collaborating to build an inclusive and diverse global pipeline of new cloud talent by focusing on unemployed and underemployed individuals to help them launch a career in the cloud.

Following the success of the IN4.0 talent academy, a 12-week specialist digital skills training programme, and its three-year partnership with AWS, IN4.0 is working with AWS re/Start on programmes in Lancashire and Greater Manchester.

IN4.0 delivered two successful AWS re/Start cohorts earlier this year with 63 learners graduating from the programme in March 2021. Applications are open for the next cohort, which is due to start on Tuesday 4 May.

The collaboration supports learners in building career skills and helping them through the interview process to pursue entry-level roles that require AWS Cloud practitioner knowledge and skills.

IN4.0, operators of HOST, the Home of Skills & Technology, formerly known as The Landing in Media City UK, is working with several employers in the North West region who are already benefitting from ‘work-ready’ graduates to help undertake industrial projects and drive digital transformation within their businesses.

IN4.0 aims to support learners in gaining job-specific skills, connect learners with potential hiring employers, and support them as they embark on cloud careers.

According to the 2019 Global Knowledge IT Skills and Salary Report, nearly 80 per cent of IT decision-makers see hiring as a challenge. While LinkedIn data shows that cloud computing skills have ranked among the top hard skills that companies need the most for the past three years.

AWS re/Start is a 12-week, skills-based training programme that covers fundamental AWS cloud skills as well as practical career skills, such as interviewing and CV writing, to help prepare individuals for an entry-level cloud position. Through real-world scenario-based exercises, labs, and coursework, students build Linux, Python, networking, security, and relational database skills.

The programme also prepares and covers the cost for participants to take the AWS Certified Cloud Practitioner exam, validating their cloud skills with an industry-recognised credential. Ultimately, AWS re/Start can help prepare individuals for entry-level cloud roles in operations, site reliability and infrastructure support.

Mo Isap, CEO of IN4.0 Group said “After working closely with AWS for nearly three years within our talent academy, we are ecstatic to continue this partnership formally as an AWS re/Start collaborating organisation and AWS select consulting partner.

“Securing this prestigious status further extends IN4.0 Group’s commitment to delivering highly skilled technology career starts for individuals from diverse backgrounds, who previously would not have had this opportunity.”

Tejas Vashi, AWS re/Start Global Team Lead said: “The industry demand for cloud adoption is far outpacing the number of new, cloud-savvy workers, leaving organisations struggling to find and hire the talent needed to implement cloud services. To overcome this systematic supply vs demand situation, cloud talent must be cultivated from non-traditional sources. AWS re/Start brings “net-new” talent into the cloud ecosystem by skilling unemployed and underemployed individuals with little technology background and preparing them to launch a cloud career.”

CloudBlue, which is owned by Ingram Micro, announced its acquisition of Harmony Business Systems in a press release.

Unofficial word of a likely deal has circulated for months. Channele2e reported in November that investor chatter had Ingram Micro and Harmony, a provider of a professional services automation platform, working on a deal.

“[HarmonyPSA’s] comprehensive professional services automation (PSA) and revenue management software is now a complement to CloudBlue’s portfolio of services designed to simplify and accelerate resellers’ transition to an Everything-as-a-Service business,” the release stated.

Nimesh Davé, president of CloudBlue and Ingram Micro Cloud, said in the release that the CloudBlue’s acquisition of Harmony is a response to CloudBlue’s managed service provider (MSP) partners’ need to grow a cloud services business with less risk.

“We are delighted to have the Harmony team join our CloudBlue community as we expand our technology offerings,” he said in the release.

Speaking to CRN Network, Davé said: “We want to continue to give our partner customers a choice to integrate and operate on. As we have grown our ecosystem, we’ve seen that most of our partners around the globe are not using PSA tools. PSA tools are great. We are trying to reach [small- to medium-sized business (SMB)] partners to give them CRM, invoice, billing, and other services. We’re reacting to those partners who tell us they need these kind of tools.”

CloudBlue is based in Irvine, California. Harmony is based in the United Kingdom and sells the HarmonyPSA product. Harmony Business Systems “will independently operate HarmonyPSA,” according to the release.

Harmony was launched more than 10 years ago, has customers in 15 countries and works across multiple languages, the release stated. It “combines CRM, ticketing, storefront, lead generation, assisted sales, and vendor competency and incentive programs into a single solution as a quote to cash and accounting system.”

Harmony Business Systems Co-Founder and Chief Technology Officer Steve Powell said in the release: “By working together, we will dramatically scale our customer base and expand our offering across various marketplaces.”