Microsoft Is Now a Major Player in Health Care

Updated: Aug 5, 2018


AMZNAmazon.com Inc1,824.15-0.56% ) isn't the only tech titan dabbling in the health care industry. Old-guard IT industry leader Microsoft Corp. (MSFTMSFTMicrosoft Corp107.86+0.27% ) has grown its health unit into a multi-billion-dollar business, the company's Chief Medical Officer Simon Kos told CNBC's "Beyond the Valley" podcast in an episode entitled "Your Health Could Soon Depend on Artificial Intelligence." (See also: Microsoft Surpasses Alphabet in Market Value.)


The software giant says it employs 1,100 people in health care and claims 168,000 customers in the industry. 


"So we’ve got about 14,000 of them [partners] in health care around the world, and for us that means health at Microsoft is a multi-billion-dollar organization growing faster than the market," said Kos. 


A Role for AI and Cloud in Modernizing Health Care

In June, Microsoft officially launched its health care unit, intended to draw on the firm's artificial intelligence and cloud capabilities to build products that modernize IT infrastructures, electronic health records (EHRs) and data analytics capabilities and foster value-based care. The move formalized Microsoft's research-focused Healthcare NExT initiative, launched in 2017, and added a new emphasis on "strategic partnerships ... and driving the cross-company strategy for healthcare and life sciences," according to a company blog post. 

Microsoft's involvement in the health care space dates back years. In 2014, when the company experimented in the wearables market, it teamed up Twist BioScience on the capabilities of DNA digital data storage and partnered with University of Pittsburgh Medical Center to build AI-enabled care delivery products. The software provider also collaborated with insurer Cigna Corp.

(CICICigna Corp189.23+0.17% ) for interactive game-based health screenings. 

The health care space is seen as ripe for disruption and has been a target for tech giants such as Apple Inc. (AAPLAAPLApple Inc207.73+0.16% ) and Alphabet Inc.


(GOOGLGOOGLAlphabet Inc1,237.73-0.27% ). Shares of traditional health care providers and pharmacy chains have taken a beating on fears of Amazon's dive into the industry, as it teams up with JPMorgan Chase & Co. (JPMJPMJPMorgan Chase & Co116.95+0.69% ) and Berkshire Hathaway Inc. (BRK.ABRK.ABerkshire Hathaway Inc304,420.00+1.08% ) on a joint health care venture intended to reduce patient costs and improve overall efficiency. (See also: Bezos-Buffett-Dimon Health Care Company Names CEO.)


READ MORE

https://www.investopedia.com/news/microsoft-now-major-player-health-care/

Recent Posts

See All

CVS explores new concepts in healthcare

By Albert DiPiero MD MPH CVS - the drug store chain which is also one of America's largest retailers - is not waiting to see what Amazon is up to. CVS is pushing ahead transforming itself from retail

Amazon health venture hires CTO

By Albert DiPiero MD MPH The joint healthcare venture between Amazon-Berkshire Hathaway-JP Morgan Chase (ABJ) just announced the hiring of Serkan Kutan as its CTO. Mr Kutan was most recently chief tec

Record funding in healthcare, 2019

By Albert DiPiero MD MPH This continues to be the golden age for the healthcare entrepreneur. Healthcare startups raised $2.61 billion in venture capital fundraising in January 2019, up 37% from the $