Week in Review: Microsoft’s Big Cannabis Splash
By Omar Sacirbey and John Schroyer
Microsoft makes a landmark foray into the marijuana business, an Arizona bank pulls the plug on a cannabis company’s crowdfunding effort, and a Denver MJ company scores a legal win.
Here’s a closer look at some notable developments in the marijuana industry over the past week.
Microsoft Isn’t Very Micro in Cannabis
Microsoft’s blockbuster disclosure about partnering with Kind Financial to go after government cannabis inventory tracking contracts shouldn’t alarm software companies already in that particular niche.
In fact, they may find wannabe partners knocking on their own doors.
That’s the opinion of two industry consultants. They reckon companies such as Denver-based MJ Freeway and Fort Lauderdale, Florida-based BioTrackTHC don’t have to fret over Microsoft dominating the space right away.
Why? Microsoft is using its Azure online cloud platform to host Kind Financial’s software – versus developing its own technology.
“If Microsoft said, ‘We developed a custom solution to target (government contracts),’ then that would be a more dominating force that would preclude competition,” said Mike Bologna, CEO of Denver-based Green Lion Partners, a marijuana consultancy. “But because it’s more of an existing tech platform … that leaves the door open for companies like MJ Freeway.”
MJ Freeway isn’t sweating it. “No, we don’t think this partnership will make it more difficult for us to win government contracts,” the company said in a statement, citing the “quality” of its product and other attributes.
Industry consultant John Conlin said Microsoft’s entry could even spur similar partnerships involving companies such as BioTrackTHC and Metrc (designed by a Florida tech firm), both of which have landed state contracts.
If he was in their shoes, Conlin said, “I’d look to partner with a big dog ASAP.” He figures that companies such as MJ Freeway, BioTrackTHC and Metrc are well positioned for partnerships.
Indeed. The New York Times reported Thursday another tech giant, Oracle, has been working quietly with New York state on tracking medical cannabis patients. That could change now that Microsoft has advertised its marijuana connection.
“This is just the beginning,” Bologna said of the Microsoft and Kind Financial partnership.
