Tag Archives: Healthspace

Healthvault strategy revisited

A post on a Microsoft Developer network blog points out that “In reality, there is no change in strategy – HealthVault is part of Microsoft overall business, but was never intended to ‘make a profit’ on it as a standalone product in the United States”. Rather, the post goes on to say:

HealthVault is an important  part, together with Amalga of Microsoft  end-to-end strategy for connecting care across the healthcare ecosystem. Together with other Microsoft solutions and partner solutions, it enables  integration of multiple sources of information and knowledge across the continuum of care … HealthVault in the US is Microsoft  “model home” for innovation in the ecosystem.

This view is consistent with Healthvault presentations that I have attended over the past few years.  Microsoft representatives were very clear that they did not see making a profit on Healthvault in the US.   I still find it interesting that they believe that they can generate a profit offering Healtvault in publicly funded healthcare systems but not in the home of “user pay” healthcare.  Or, perhaps I am just being cynical 🙂

Mike

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Microsoft Healthvault Not Profitable in the US

An article earlier this week in the Financial Times states that “Microsoft has abandoned efforts to make profits in the US out of its Healthvault cloud computing system“.  Citing “complexity in the country’s health system“, Peter Neupert, corporate vice-president for health, says that the primary benefit to continued operation of Healthvault in the US is to “increase the brand relationship“.   Not only will Microsoft not charge US users  to use Healthvault, the company also committed to not attempt to generate revenue from advertising or other sources.

Microsoft is apparently still pursuing revenue generation opportunities in other countries in which Healthvault operates including Canada. Given Canada’s federated health system, with each province pursuing different priorities and approaches, will Microsoft and its Canadian partner, Telus, experience similar difficulties in achieving profitability?

Mike