Microsoft Corporation (MSFT): Is Google Inc (GOOG) Health 2.0 Inevitable?

Page 1 of 2

These days, a wide range of companies, including General Electric, Cisco, 3M and Microsoft Corporation (NASDAQ:MSFT), are all clamoring for a piece of the booming industry of health care IT. New coding systems like ICD-10 and financial-incentive programs for meaningful use are sending medical practices scrambling to update their systems to meet government-mandated standards.

However, one major company that is notably absent from the health care IT gold rush is search giant Google Inc (NASDAQ:GOOG), which isn’t shy about disrupting other industries.

Google Inc (NASDAQ:GOOG)

The failure of Google Health
In 2008, Google Inc (NASDAQ:GOOG) introduced a personal health-record service known as Google Health. Patients were asked to disclose their health records, either voluntarily or through a partnered EHR service, to create a centralized Google Health profile.

It was a revolutionary idea that had plenty of heavyweight backers, including Allscripts, Walgreen, CVS Caremark, and Drugs.com. It featured cutting-edge features, such as a Wi-Fi scale from Withings that could synchronize patients’ weight data with a cloud-based profile, and a seamless integration with telehealth features from MDLiveCare and Hello Health.

For a while, it looked as if Google Health would unite the fragmented world of EHR services just as its search engine did for the Internet.

Yet in 2011, the service was abruptly discontinued. Google Inc (NASDAQ:GOOG) claimed, via its blog, that the service was not “having the broad impact” that the company had hoped for, although it had proven popular among “tech-savvy patients and their caregivers” and “fitness and wellness enthusiasts.” Widespread adoption, however, eluded the company.

Could Google Health make a comeback?
Two years later, some investors are wondering if Google Inc (NASDAQ:GOOG) will resurrect Google Health to capitalize on the growing need for unified EHR systems. In the two years since Google Health’s demise, Android has surged in popularity, and now accounts for 80% of smartphone shipments and 63% of tablet shipments worldwide. With its eagerly anticipated Google Glass also on the way in late 2013 or early 2014, could this be the right time to release Google Health 2.0?

A major roadblock barring Google Health’s return is the complex enterprise nature of EHRs. Google Inc (NASDAQ:GOOG)’s main source of revenue comes from advertising. It generates this revenue by nurturing user dependence on its services — such as desktop search, cloud-based apps (maps, docs, YouTube, Gmail), and Android. Everything that Google Inc (NASDAQ:GOOG) makes, including Google Glass, is created with that goal in mind.

Enterprise is not the answer
Enterprise software, on the other hand, is how companies like Microsoft Corporation (NASDAQ:MSFT) and Hewlett-Packard generate sales. This is the industry of servers, software, and IT services — a highly fragmented and competitive business that Google has mostly avoided.

That’s why Microsoft Corporation (NASDAQ:MSFT) is still holding onto its EHR service, HealthVault, and has been promoting Windows 8 tablets as viable replacements for Apple Inc. (NASDAQ:AAPL) iPads to access mobile EHR apps. Microsoft has also been testing the idea of using the Kinect in coordination with HealthVault to revolutionize remote treatments.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Top Reasons For Getting Fired

The 3 Best States to Start an LLC

10 Jobs That Allow You to Travel

7 High-Paying Jobs You Can Do From Home

12 Best Cities to Shop in USA

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!