Microsoft Buys Security and Healthcare Companies

Published: August 2, 2006

by Alex Woodie

Microsoft continued its streak of acquisitions with two purchases over the last week, including Whale Communications, a provider of SSL and VPN security products, and Azyxxi, a developer of software for the healthcare industry. Microsoft also announced an alliance with MedStar Health.

Whale Communications is a Fort Lee, New Jersey, company that develops IT security products, including its flagship Intelligent Application Gateway appliance, which provides firewall, SSL, and VPN capabilities, "attachment wiper" capabilities for "endpoint compliance," and integration with common directories for single sign-on. Microsoft says it plans to integrate Whale's products into its ISA Server software, and the software will likely end up in a supporting role to Forefront, Microsoft's antivirus software. Whale will continue to operate as a subsidiary of Microsoft.

Microsoft also announced plans to purchase Azyxxi, a developer of software that serves as a repository for patients' routine clinical information, such as EKGs, X-rays, CT scans, MRI scans, PET scans, and other scanned documents. The Azyxxi solution was first deployed in 1996 in the emergency department of Washington Hospital Center, which is one of seven hospitals owned by MedStar Health, a non-profit healthcare organizations.

Under the terms of the acquisition of Azyxxi and the new partnership with MedStar, the original Azyxxi developers--Dr. Craig Feied, Dr. Mark Smith, and Fidrik Iskandar--will continue to support the development and expansion of Azyxxi software, along with 40 other employees of the development team at Washington Hospital Center.

The addition of the Azyxxi solution and the development team at Washington Center does much to further Microsoft's efforts in the healthcare field, says Peter Neupert, corporate vice president of Microsoft's new health solutions group. "Healthcare delivery is one of the top global challenges for governments, employers, caregivers, and consumers. Microsoft believes that information technology can positively impact the situation by removing barriers and empowering physicians with instant access to critical patient data."