Nuance To ‘Double’ Microsoft’s Healthcare Market
One of the major reasons why Microsoft is spending nearly $20 billion to buy Nuance is for the company’s massive footprint in the U.S. healthcare market. Microsoft said the purchase will “double Microsoft’s total addressable market in the healthcare provider space,” bringing the company’s TAM in healthcare to nearly $500 billion.
Nuance has been in the healthcare industry for two decades and has one of the most mature software product sets as a pioneer of conversational AI and cloud-based clinical intelligence. Nuance is leveraged by 77 percent of U.S. hospitals, according to the company, with more than 55 percent of physicians and 75 percent of radiologist in the U.S. currently using Nuance solutions. Additionally, 85 percent of the Fortune 100 companies’ partner with Nuance along with more than 10,000 healthcare organizations.
There’s no doubt that Microsoft’s acquisition of Nuance is heavily targeting the healthcare vertical with hopes to get a leg-up over the competition.