Microsoft-Merck alliance boosts Amalga

Microsoft takes assets from Rosetta Inphamatics, a Merck unit, genetics and protein data it can use to build the lab section of its Amalga hospital software suite. Specifically the assets come from the Rosetta BioSoftware unit.

(Why Rosetta? Think Rosetta stone, translating between technical data and news doctors can use.)

The deal also creates an alliance with Merck, the drug giant, that should help Amalga compete for hospital lab software contracts against outfits like Cerner, which last year one the Veteran Administration's lab software contract.

It's a win-win-win. Microsoft gets a jump-start into a profitable niche within hospital software. Merck gets out of a business outside its strategic plan. Rosetta customers should get better software and service down the road, from a company serious about the space and scaled to gain share.

Expect more deals like this aimed at muscling McKesson, Cerner and the other specialist outfits in the market for hospital and medical office software.