If you’re curious about the arena of speech recognition, back in 2009 a very interesting licensing agreement took place. According to an article in the SFGate which is the home of the San Francisco Chronicle, a small application called Siri was the key to kicking off Nuance’s strategy. While reading an article titled Siri app Makes Nuance Communications big in voice, some interesting facts were revealed about how critical this unassuming application was at the time. According to the writer, nuance was running a strategy that was counterproductive to enabling mass distribution of its technology. In short, any developer who wanted to use their voice recognition or speech recognition capabilities had to pay essentially a penny each time one of the applications accessed their technology. As a result, large scaling or cost effective implementation of applications for the average user was not practical. In fact, the wild success of the most recent boom in applications is a telltale sign that Nuance picked a much better strategy after learning from how a small little app called Siri which was later bought by Apple turned the tables through what appears to me as a stroke of luck.
The stroke of luck allowed nuance to start charging a flat fee for the developers to access their services. Furthermore, nuance put together a small stage or collection of free applications to help developers utilize this tool kit in the application of their ideas for devices or applications. As a result, nuance has gained massive distribution of the technology across millions of devices. In my experience, this has been one of the major hurdles nuance needed to overcome. Back in 2007 or 2008 when I started using Dragon NaturallySpeaking, very few people had heard about this technology let alone who Nuance Communications was. I’m excited to see a move that takes them out of the health-care and financial sector and into a sector that allows mass distribution upon a very large scale. In fact, it’s fascinating to see the vast wave of new apps that have been enabled simply based on a flat fee-for-service agreement that Nuance the charges these developers. The methodology they have utilized to see their technology into the marketplace is very interesting. Furthermore, the latest introduction has created a new translation application made by manufacturer called Sonico who created a technology that allows the translation of a voice into a different language. The application is called iTranslate Voice. The simple switch in Nuance’s strategy allowed them to have an application which is now in the top 10 in fact in seventh place most recently ahead of where’s my water and angry birds .all in all, it is nice to have a flat rate tthat Nuance is collecting in addition to a cut of each additional application sold. Currently, the number of similar applications is in the neighborhood of 140. At last check there are thousands of additional items in the pipeline. as a result, Nuance Communications as a stock becomes much more attractive to me because they’re projecting the revenue to move from 250,000,000 to 500,000,000 over the next three years simply based on this growth in the contrast of this position is against the global marketplace which is estimated to be 21.3 billion by 2018 nd up from 3.5 billion last year. The research is courtesy of wintergreen research.
At this point in time. I am grateful to be in the leading edge of what could be a very large move in this company long-term.
