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Microsoft Turning to Hospitals to Drive Teams’ Uptake

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Supporting medical team collaboration

Microsoft (MSFT) wants doctors to use its Microsoft Teams chat app to collaborate and coordinate their operations, according to Bloomberg. Teams provides a virtual workplace environment allowing users to exchange ideas and share files with colleagues remotely. It competes with services such as Slack.

According to Microsoft, its Teams chat app could help healthcare teams better coordinate care delivery for the best outcomes. Bringing doctors to Teams could prove particularly lucrative to Microsoft. According to Grand View Research, the global team collaboration software market was worth $8.2 billion in 2017 and is poised to grow to $16.6 billion by 2025.

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Over $206 billion up for grabs in the cloud market

Creating Teams features that would appeal to doctors is part of Microsoft’s efforts to bring hospitals and other healthcare organizations to its cloud platform. Microsoft is locked in tight competition with Amazon (AMZN), Google (GOOGL), IBM (IBM), and Alibaba (BABA) for cloud dollars. More than $206 billion is up for grabs in the global public cloud market this year, according to Gartner estimates.

Microsoft currently has a smaller global cloud market share than Amazon, but its cloud revenue growth has been outpacing the market leader’s. Microsoft’s core cloud revenue increased 76% YoY (year-over-year) in the December quarter, while Amazon’s cloud revenue increased 49% YoY. Alibaba was the fastest-growing major cloud provider in the quarter, recording 84% YoY cloud revenue growth. IBM’s cloud revenue fell 3.0% YoY in the December quarter. Whereas Google doesn’t report its cloud revenue as a separate item, in its unit that houses the cloud business, revenue increased 30% YoY.

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