The world's largest software maker
) Office 365 is gaining traction in the healthcare sector with
organizations such as FHI 360, Gwinnett Hospital System, Kindred
Healthcare Inc. and Mihills Webb Medical all opting for
The suite won on different counts at these players. While FHI
360 chose the solution to smoothen its transition to the cloud,
Gwinnet wanted better collaboration between its cloud-based and
on-premise operations and Kindred wanted a standardized platform
that could increase the efficiency of its operations.
Therefore, the Office software is equipping these healthcare
organizations with advanced technologies such as cloud computing,
with the intention of increasing the efficiency of their
operations and improving resource allocation. It is also
facilitating communication and collaboration among the healthcare
services and at the same time reducing IT expenses of healthcare
organizations and partners across the world.
The fact that Microsoft's Office 365 takes care of the
regulatory and privacy requirements of the U.S. Health Insurance
Portability and Accountability Act of 1996 (HIPAA) is no doubt
playing a part in the large number of customer wins.
Since Office 365 is sold as a service, it's a way for
Microsoft to earn ongoing revenues instead of a one-time
licensing fee. Launched in 2011, the new Office comes with the
traditional word processing, spreadsheets and email programs.
Microsoft also recently launched an online version of Office
365 that is focused on touch devices. Further, it is being
deployed at several retailers such as
J. C. Penney Company Inc.
) and U.K.-based Tesco, as well as government departments such as
the Texas Department of Information Resources, which chose the
software for inter-departmental activities. The latest to join
the bandwagon is the International Federation of Red Cross and
Red Crescent Societies (IFRC), which also signed an MoU with
As per a report by GIA, global healthcare services may become
a trillion dollar industry, which may reach $3.0 trillion by
2015. The growth may be driven by rising investment in areas such
as healthcare IT and others. Thus, booming healthcare services
may become the catalyst for Microsoft's Office 365 going
Currently, just like other PC makers, Microsoft is also
battling the slump in the PC market caused by the sluggish
economy. In addition, the popularity of smartphones and tablets
) has been cannibalizing on its core PC market. Whether it can
come out of the slump on the back of its new software and OS
remains in question. Recent data from independent market research
firms seems to indicate that pickup will be slow.
Microsoft reported revenues, excluding deferrals, of $21.46
billion in the second quarter of fiscal 2013, up 34.0%
sequentially and 2.7% from last year, in line with our estimates.
All except the Entertainment & Devices segment grew both
sequentially and from the year-ago quarter.
Microsoft has a Zacks Rank #3 (Hold).
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