IBM had high hopes for its Watson Healthcare unit, but other big tech players like Microsoft and Google have seen more success. As a result, IBM will sell the healthcare data and analytics assets housed under its Watson Health unit to private equity firm Francisco Partners.
The healthtech field is booming, as more companies attempt to use technology and AI to assist in health diagnostics and treatment. Coupled with the Zoom revolution, the way we deliver healthcare will change dramatically over the coming decade. In that respect this is an operational failure by IBM. The opportunity is there but they didn’t execute. Perhaps Francisco Partners can find the right formula to make this a successful business.
