Editing Nuance Communications, Inc.

{{Infobox company
| name = Nuance Communications, Inc.
| former_name = ScanSoft, Inc.
| type = [[Subsidiary]]
| foundation = {{start date and age|df=0|1992}}<br />as [[Visioneer]]
| location = {{nowrap|[[Burlington, Massachusetts]], U.S.}}
| key_people = [[Chairman]] and [[CEO]] Mark Benjamin
| industry = [[Software]]
| parent = [[Microsoft]]
| num_employees = 6,500+ (2021)
| products = [[Interactive Voice Response|IVR]],Natural Language Understanding,[[Optical character recognition|OCR]], [[speech synthesis]], [[speech recognition]], [[PDF]], consulting, government contracts
| website = {{URL|www.nuance.com}}
}}

Nuance Communications, Inc is a multinational software technology company that specialises in AI-powered speech recognition and Natural Language Processing(NLP) solutions that have various applications in the healthcare industry. It is a pioneer in cognitive and conversational artificial intelligence (AI) innovations. These innovations infuse intelligence into daily work and life, amplifying human intelligence to boost productivity and enhance security. Over the last 20 years, Nuance has delivered over US$1bn in appropriate reimbursement annually for healthcare organisations, more than US$USbn in annual savings for enterprises and an estimated $US2bn in annual fraud prevention savings.

== Operations ==

=== '''History of the company:''' ===
Originally incorporated as Visioneer in 1992, the company merged with ScanSoft, Inc. its largest competitor at the time in 1999. In 2005, ScanSoft acquired and merged with Nuance Communications, Inc and changed its name to the same. Under this name, the company had  was a key player in the development of voice recognition software and speech-to-text technology. As of March 4th 2022, Nuance Communications Inc. is a subsidiary of Microsoft Corp. It is based in Burlington, Massachusetts, but it has established a significant presence in the Seattle area through various acquisitions such as Saykara<ref>https://www.crunchbase.com/organization/nuance/company_financials</ref>, VoiceBox, Swype, and several others.
=== Mission of the company: ===
At its core, Nuance aims to use advanced conversational AI to help improve productivity, enhance customer experiences, and enable seamless human-machine interactions across various industries, including healthcare, automotive, financial services, and more. Its website states its mission statement as, "amplifying your ability to help others"<ref>https://www.nuance.com/en-gb/company-overview/what-we-do.html</ref>. According to Nuance CEO Mark Benjamin, ''“We are committed to innovating new and cutting-edge AI solutions that help make healthcare more personal, affordable, effective and accessible, while also continuing to improve the patient and clinician experience."<ref>https://www.geekwire.com/2022/microsofts-19-7b-nuance-deal-is-finally-final-nearly-a-year-after-it-was-announced/</ref>''

=== Main offerings of the company: ===
The company offers an array of solutions under three primary segments: Healthcare, Enterprise, and Other. 

The Healthcare segment focuses on improving and simplifying clinical documentation through solutions that comprehend and analyse clinical speech and language. It provides products like Dragon Medical One, a cloud-based speech recognition solution, and Nuance Dragon Ambient eXperience (Nuance DAX), an AI powered clinical documentation solution. These tools enhance clinical documentation efficiency, accuracy and accessibility. 

The Enterprise segment employs speech, natural language understanding, and AI to automate customer solutions across various channels, including voice, mobile, web, and messaging. This segment delivers intelligent engagement solutions and utilises Conversational AI, Engagement AI, and Security AI to better interact with customers. Examples include virtual assistant and chatbots for enhanced customer service to achieve the best possible business outcomes.

The Other segment delivers mainly language and translation services that aren't healthcare or enterprise focused.

Serving a diverse range of industries, from healthcare and financial services to telecommunications, government, and retail, Nuance markets and sells its innovative solutions directly and through an extensive network of resellers. These resellers encompass system integrators, independent software vendors, value-added resellers, distributors, hardware vendors, telecommunications carriers, and e-commerce websites globally.

== Acquisition by Microsoft ==
On March 4<sup>th</sup> 2022, Microsoft Corp completed the acquisition of Nuance Communications Inc. in all cash transaction valued at $19.7 billion, inclusive of Nuance’s net debt. This is the third largest acquisition in Microsoft history after Activision-Blizzard and LinkedIn.
[[File:MS NUANCE.jpg|thumb|323x323px]]

=== Acquisition Rationale: ===
Microsoft's acquisition of Nuance builds upon their previous successful partnership, initially announced in 2019. By integrating Nuance's solutions into the Microsoft Cloud for Healthcare and leveraging Nuance's expertise and relationships with EHR systems providers, Microsoft aims to enhance healthcare providers' capabilities through ambient clinical intelligence and other cloud services. Nuance's expertise in AI and customer engagement also extends beyond healthcare, which will benefit Microsoft in providing advanced solutions to other industries as well. The acquisition of Nuance by Microsoft is expected to expand Microsoft's total addressable market (TAM) in the healthcare provider domain, effectively increasing it to almost $500 billion.<ref>https://news.microsoft.com/2021/04/12/microsoft-accelerates-industry-cloud-strategy-for-healthcare-with-the-acquisition-of-nuance/</ref>The acquisition aligns with Microsoft's strategy to focus on specialised cloud services for different sectors.

According to Microsoft CEO, Satya Nadella, ''"Nuance provides the AI layer at the healthcare point of delivery and is a pioneer in the real-world application of enterprise AI.” “AI is technology’s most important priority, and healthcare is its most urgent application. Together, with our partner ecosystem, we will put advanced AI solutions into the hands of professionals everywhere to drive better decision-making and create more meaningful connections, as we accelerate growth of Microsoft Cloud for Healthcare and Nuance."''<ref name=":0">https://news.microsoft.com/2021/04/12/microsoft-accelerates-industry-cloud-strategy-for-healthcare-with-the-acquisition-of-nuance/</ref> 

=== How is this acquisition beneficial for both Microsoft and Nuance? ===
On the whole, acquiring Nuance is extremely beneficial for both parties. In the long term, Microsoft will acquire Nuance's technology, staff and skills, clients and IP(intellectual property). Stu Patterson, ex-CEO, SpeechWorks, told the Boston Globe that Nuance: ''“… has more intellectual property around speech than anybody on earth.”  ''<ref>https://vux.world/why-is-microsoft-acquiring-nuance-really-the-bigger-picture/</ref> The biggest benefits for Microsoft are however expansion in the healthcare market and strengthening Industry-Specific Cloud Strategy. 

For Nuance, on the other hand, this acquisition gives it access to a much larger market due to Microsoft's vast customer base and global reach as well as more financial strength and stability. This can fuel further innovation, research, and development of cutting-edge products and services.

Also, by integrating Nuance's conversational AI and healthcare solutions into Microsoft's product portfolio, there are opportunities to create synergies and cross-selling between Nuance's offerings and Microsoft's existing suite of products. These synergies could include complementary product offerings, streamlined operations and cross-selling opportunities among others.

== Market ==

=== Total Addressable Market (TAM) ===
TAM represents the entire potential market demand for a product or service without any limitations. Here, the TAM is defined as the global healthcare market. It is estimated that the revenue in the healthcare market is projected to reach $57.86 billion in 2023 (based on a number of assumptions).<ref>[https://www.statista.com/outlook/dmo/ecommerce/beauty-health-personal-household-care/health-care/worldwide#:~:text=Revenue%20in%20the%20Health%20Care,US%2457.86bn%20in%202023. https://www.statista.com/outlook/dmo/ecommerce/beauty-health-personal-household-care/health-care/worldwide#:~:text=Revenue%20in%20the%20Health%20Care,US%2457.86bn%20in%202023.]</ref>

=== Serviceable Available Market (SAM)<ref>https://finance.yahoo.com/news/ai-healthcare-market-reach-us-114100721.html</ref> ===
SAM represents the portion of the TAM that a company can realistically target and serve based on its resources, capabilities, and market strategy. Here, the SAM is defined as the healthcare AI market. As of 2022, the AI in healthcare market was valued at over $9 billion (based on a number of assumptions). As of 2023, the market for AI in healthcare is expected to close at $12.63 billion. However, from 2023 to 2031, the market is expected to grow by nearly 15x. 

=== Serviceable Obtainable Market (SOM) ===
SOM represents the portion of the SAM that a company can practically and effectively capture under existing market conditions and constraints. Here, the SOM is defined as the healthcare AI market in North America. In 2022, the AI in healthcare market was predominantly led by North America, with the region holding the largest revenue share of 58.0%, which is around $5.22 billion (based on a number of assumptions). <ref>[https://www.grandviewresearch.com/industry-analysis/artificial-intelligence-ai-healthcare-market#:~:text=North%20America%20dominated%20artificial%20intelligence,share%20of%2058.0%25%20in%202022. https://www.grandviewresearch.com/industry-analysis/artificial-intelligence-ai-healthcare-market#:~:text=North%20America%20dominated%20artificial%20intelligence,share%20of%2058.0%25%20in%202022.]</ref>

== Competition ==

=== Healthcare Artificial Intelligence ===

=== Automotive Voice Recognition ===

== Leadership ==

=== Executive Team:<ref>https://www.nuance.com/en-gb/company-overview/leadership.html</ref> ===
[[File:Mark benjamin.png|thumb|164x164px]]

==== Chief Executive Officer - Mark Benjamin ====
Mark Benjamin joined Nuance in April 2018 as the CEO and a director. He has extensive experience in the technology industry, with a successful track record in driving growth initiatives related to cloud, SaaS, mobile, big data, and IoT solutions. Before joining Nuance, Mark held the position of president and chief operating officer at NCR Corporation. There, he was responsible for overseeing sales, solutions management, business and product development, services, and supply chain operations. Mark holds a bachelor's degree in international finance and marketing from the University of Miami.

[[File:Joe Petro.png|thumb|168x168px]]
==== Chief Technology Officer - Joe Petro ====
In September 2018, Joe Petro assumed the position of Executive Vice President and Chief Technology Officer. In this capacity, he is responsible for supervising research, platform development, application development, dev ops, and cloud readiness for the company. Joe joined Nuance in 2008 as the Senior Vice President of Healthcare Research and Development. He holds a Bachelor of Science degree in mechanical engineering from the University of New Hampshire and a Master of Science degree in mechanical engineering from Kettering University.



[[File:Dan Tempesta.png|thumb|177x177px]]

==== Chief Financial Officer - Dan Tempesta ====
Dan Tempesta has been serving as the Executive Vice President and Chief Financial Officer of Nuance since July 2015. In this role, he is responsible for overseeing all financial and accounting operations, as well as tax, treasury, investor relations, order management, and procurement. He joined Nuance in 2008 and has held various senior finance positions, including Chief Accounting Officer and Senior Vice President of Finance. Dan holds a degree in Business Administration and Accounting from the Isenberg School of Management at the University of Massachusetts Amherst.


[[File:Peter Durlach.png|thumb|180x180px]]
==== Chief Strategy Officer - Peter Durlach ====
As the head of corporate strategy, Peter's primary responsibility is to advance Nuance's overall strategic direction and portfolio, aligning with emerging trends in key vertical markets such as healthcare, financial services, telecommunications, retail, and government. Additionally, he oversees the development of disruptive AI-powered solutions through new strategic innovations. He holds a BS in business administration from the University of Vermont.



=== Other people of importance: ===
[[File:Satya Nadella.webp|thumb|158x158px]]

==== Chief Executive Officer of Microsoft- Satya Nadella ====
Satya Nadella is the Chairman and CEO of Microsoft. He assumed the role of CEO in February 2014. He joined Microsoft in 1992 and prior to becoming CEO, Nadella served as the Executive Vice President of Microsoft's Cloud and Enterprise group. During this tenure, he successfully led the company's transition to cloud-based infrastructure and services. He completed his undergraduate studies in electrical engineering at Mangalore University, followed by a master's degree in computer science from the University of Wisconsin - Milwaukee and an MBA from the University of Chicago.



[[File:Scott Guthrie.jpg|thumb|191x191px]]

==== Microsoft Cloud + AI Executive Vice President - Scott Guthrie ====
As the Executive Vice President of the Microsoft Cloud + AI Group, Scott Guthrie oversees Microsoft's cloud computing infrastructure, artificial intelligence platform, and the development of industry-specific cloud solutions. This includes managing products and services like Microsoft Azure (the global cloud computing platform) and Microsoft Business Applications . Additionally, he is responsible for a range of developer tools such as Visual Studio, Visual Studio Code, and GitHub, along with core commerce capabilities, infrastructure, and compliance solutions across the Microsoft Cloud. The recent acquisition of Nuance Communications adds expertise to the company's expanding portfolio.

=== How does leadership change after the acquisition? ===
As part of Microsoft, Mark Benjamin will still remain CEO of Nuance and will report to Guthrie. This arrangement follows a similar model employed by Microsoft with LinkedIn, where acquired companies maintain a level of autonomy and independence within the Microsoft structure.

=== Board of Directors:<ref>https://www.capitaliq.com/CIQDotNet/Company/BoardMembers.aspx?CompanyId=346200&limitFunctions=3</ref> ===

==== Keith Ranger Dolliver ====
Mr. Keith Ranger Dolliver currently holds the positions of President, Treasurer & Director at Nuance Communications, Inc., starting from March 04, 2022. Prior to this role, he served as Vice President, Deputy General Counsel of Corporate, External & Legal Affairs, and Assistant Secretary at Microsoft Corporation. He is also the Chief Executive Officer of GroupMe Inc. and Vice President of LinkedIn Corporation. Mr. Dolliver obtained his J.D. from the University of Chicago Law School and holds a B.A. from Swarthmore College.

==== Benjamin Owen Orndorff ====
Mr. Benjamin Owen Orndorff has been serving as a Director at Nuance Communications, Inc. since March 04, 2022. Additionally, he holds the position of Managing Director at 6 Wunderkinder GmbH.  Furthermore, he has been a Director at LinkedIn Australia Pty Ltd since January 26, 2017.

== Risks ==

== Financials ==

== Valuation ==

== References ==