Microsoft Acquisition of Nuance 2021
Nuance Customer Perceptions of Acquisition's Impact

“Microsoft is a great IT company overall, but historically, they have been a little disconnected in healthcare. People have to explain everything to them. I am hoping that Nuance’s long-term experience in the healthcare space will help Microsoft. Microsoft is a good company and having Microsoft’s backing will help Nuance.” —Vice president

Handful of Organizations Expect to Increase Their Engagement with Nuance

A handful of respondents—mostly Dragon Medical One customers—expect that they will increase their engagement with Nuance following the acquisition. These customers are looking forward to taking advantage of deeper integration with existing Microsoft products.

“We are more likely to engage with Microsoft because of the acquisition. Microsoft already has deep relationships in the healthcare enterprise, and we are no different. We have deep relationships with Microsoft. We are really intrigued by how we can integrate some of Microsoft’s existing portfolio with the Nuance suite’s capabilities. We are highly interested in that.” —Vice president

However, the majority of respondents (69%) expect their level of engagement with Nuance to remain steady. These customers believe Microsoft will largely allow Nuance to continue operating as they have in the past, and they therefore do not anticipate any change in engagement.

“I don’t foresee changes happening. Nuance is a pretty strong company, and I feel like they are going to continue to run the company as they have.” —Manager

PowerScribe 360 users appear to be least certain about the acquisition’s impact on engagement, with 44% mentioning that they are unsure if or how their engagement will change post-acquisition.

Customers Highlight Opportunity for Increased Innovation, Note Concerns about Potential for Support to Slip

One of the most frequently mentioned benefits that customers see the potential to gain from the acquisition is an increase in resources to help solve existing product issues. They also see the potential for Microsoft infrastructure (e.g., Azure) to accelerate the rate at which Nuance is able to deliver new, innovative technology, particularly around artificial intelligence (AI). One interviewed manager believes Microsoft’s acquisition is the key that will enable Nuance to unlock AI technology: “I am not surprised by the acquisition. In terms of analytics and technology, the acquisition is probably a good move for Nuance, especially since AI is going to be our future. I think Microsoft can help Nuance get there.”

“Microsoft is going to have more talent. They have a stable of software engineers that are unrivaled. If they can use their experience with software engineering to improve on Nuance’s products even further by collaborating, any product that they come out with will improve on the new ones. They will also be more innovative. Microsoft just needs to keep innovating and keep up with the good support of their clients.” —Physician

While customers see a lot of promise due to Microsoft’s existing portfolio and expansive resources, some see the potential for challenges to arise. For example, some worry the level of customer support will decline given Microsoft’s size and some previous interactions with the company. A manager explained, “I am a little worried. I don’t want Nuance’s support to turn into giant Microsoft’s customer support, which tends to be rigid. I feel like Nuance actually listens to us and is trying to understand our specific needs. I have been on calls with Microsoft, and their support isn’t like Nuance’s. My advice to the leadership going forward would be to not ruin the current Nuance support.”

Additionally, because of Microsoft’s size and cross-industry ventures, some customers worry Microsoft will use the Nuance technology to focus on non-healthcare-related initiatives, allowing Nuance’s healthcare-focused technology to stagnate: “Maintaining a focus on healthcare and not getting lost in the bigger conglomeration of Microsoft could be a challenge. Nuance has a lot of balls in the air outside of healthcare with their voice recognition capabilities and work with Siri, so I hope the healthcare part of the product doesn’t get lost” (manager).

Customers would also like Microsoft to maintain competitive price points for the Nuance products and ensure that prices don’t spiral out of control. One vice president’s impassioned plea summed up a common customer sentiment about the potential for cost increases: “The solution has to be affordable and scalable. We have gotten some initial feedback that it is extremely expensive to implement Microsoft’s tools and technologies. If we really want to do what is best for providers and patients, we have to make care more affordable for our communities. The tools are just too expensive, and that is not sustainable. We believe care should be affordable for everyone. If we could provide affordable care, then we could help people be healthier as well. People would have access to the right kind of care. When we look at some of the major technology implementations and innovations, the economics have to work. The technology can’t erode our ability to provide world-class clinical care at an affordable cost.”