The two companies had already beenworking closely before the acquisition.
Nuance had built several of its products on top of Microsofts Azure cloud.
The acquisition is Microsofts biggest since the $26-billion purchase of LinkedIn.
And it tells a lot about Microsofts AI strategy.
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AI is technologys most important priority, and healthcare is its most urgent app.
AI is technologys most important priority, and healthcare is its most urgent program.
Nuances AI technology is helping save time and improve the patient experience.
But being able to address this market is not a simple feat.
Other big tech companies such as Apple and Google already have healthcare initiatives that are much older than Microsofts.
But Microsoft is especially well-positioned to take advantage of this new acquisition because of its business model.
Google and Apple are consumer companies.
Microsoft, on the other hand, gets most of its revenue from enterprise customers.
Thats why it was already in a good spot to penetrate the market.
The acquisition will enable Microsoft to accelerate its growth by leveraging Nuances reach in the healthcare sector.
Now, every Nuance customer will also be a Microsoft customer.
It will be interesting to see how Nuances technology will be integrated into other Microsoft enterprise products.
For instance, Microsoft already has anexclusive license to OpenAIs GPT-3languagemodel.
Nuances transcription technology and GPT-3 might become a powerful combination for the enterprise.
But it is banking on the one constant that is always needed in the field: compute power.
This puts Microsoft in a position to both help those companies grow and to learn from them.
And the investment pays off when the companys technology and business model mature.
I noted at the time that Microsofts success is in maintaining a safe distance from developing sectors.
Instead of making one big acquisition, Microsoft casts a wide net by making smaller investments in several companies.
This gives it a good foothold into many innovative sectors.
As these sectors mature, Microsoft gradually enters partnerships with the more successful startups.
Theenterprise AI sectorhas come a long way toward creating applications that can solve real-world problems.
But we still havent figured out many things.
And as new technologies and companies continue to develop, Microsoft will be watching and picking winners.
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