Walgreens Boots Alliance Inc. signage is displayed in the window of a store in downtown Chicago,... [+] Illinois, U.S., on Tuesday, Oct. 18, 2016. Photographer: Christopher Dilts/Bloomberg In a potentially blockbuster partnership, Walgreens Boots Alliance said it has formed a strategic alliance with Microsoft Corp. to "develop new health care delivery models, technology and retail innovations to advance and improve the future of health care." The companies said they will combine the power of Microsoft Azure, Microsoft’s cloud and AI platform, "health care investments, and new retail solutions" with the reach of Walgreens' more than 8,000 U.S. stores and retail locations around the world. Calling it a "strategic partnership" and disclosing no financial terms, Walgreens and Microsoft say they have each made a multiyear research and development investment to "build health care solutions, improve health outcomes and lower the cost of care." As part of the partnership, Walgreens will roll out 12 pilot "digital health corners” this year that are "aimed at the merchandising and sale of select health care-related hardware and devices," the companies said. "This investment will include funding, subject-matter experts, technology and tools," the companies said in a joint statement. "The companies will also explore the potential to establish joint innovation centers in key markets." The move comes after CVS Health last month completed its acquisition of Aetna, the nation's third largest health insurer and online retail giant Amazon last year purchased an online pharmacy. Retailers are looking to rapidly grow their healthcare businesses as a way to offer lower cost services and treatments as U.S. consumers battle rising healthcare costs. Walgreens' CEO says partnering with the digital expertise of Microsoft will help the drugstore giant meet healthcare consumers' needs. “Our strategic partnership with Microsoft demonstrates our strong commitment to creating integrated, next-generation, digitally enabled health care delivery solutions for our customers, transforming our stores into modern neighborhood health destinations and expanding customer offerings,” said Stefano Pessina, executive vice chairman and chief executive officer of WBA. “WBA will work with Microsoft to harness the information that exists between payors and health care providers to leverage, in the interest of patients and with their consent, our extraordinary network of accessible and convenient locations to deliver new innovations, greater value and better health outcomes in health care systems across the world.” Walgreens said it will work with Microsoft to connect the drugstore giants stores and clinics to consumers “wherever they are,” allowing customers to access digital services like virtual care when they need it, the companies said. “Improving health outcomes while lowering the cost of care is a complex challenge that requires broad collaboration and strong partnership between the health care and tech industries,” Microsoft CEO Satya Nadella said “Together with Walgreens Boots Alliance, we aim to deliver on this promise by putting people at the center of their health and wellness, combining the power of the Azure cloud and AI technology and Microsoft 365 with Walgreens Boots Alliance’s deep expertise and commitment to helping communities around the world lead healthier and happier lives.”
Walgreens Boots Alliance has announced a partnership with Microsoft to establish innovative health care delivery models . The collaboration will leverage the combined company 's cloud and AI platform , Microsoft Azure , leveraging its access to big data and applying this to new health care solutions in users ' 8,000 global locations . While no financial detail has been revealed , both firms confirmed multi - year investments , including 12 pilot initiatives to market healthcare - related hardware . The race to offer low - cost health care services and treatments has ramped up in recent months , with CVS Health and Microsoft both making large acquisitions in the sector .