Microsoft, the famously conservative tech company, is hip and happening these days.
The company, led by CEO Satya Nadella, famously announced a one-of-a-kind tryst with Kind Financial, a Los Angeles-based firm that sells computer systems to governments that track legalized marijuana sales in US. Under the Microsoft – Kind Financial deal, the major tech company will be licensing its cloud services to authorities to monitor marijuana sales in the US.
The tryst announcement comes three days after Microsoft announced on Monday that it was buying LinkedIn Corp., for a record-setting $26 billion.
READ MORE: How Big Is The Market For Legal Pot!
Kind Financial, founded in 2013, sells marijuana tracking software to sellers, growers, and governments. In spite of being directly involved in the trade, CEO David Dinenberg has stressed repeatedly saying, “We absolutely do not touch the plant.” It offers a range of products, including ATM-style kiosks to expedite pot sales, working through state-chartered banks.
ENTERING CANNABIS INDUSTRY AS SALES IN US GROW
Cannabis industry, which remains illegal under Federal Law, is seen as a fast progression market. It is legal in 25 states, where the sale of recreational or medicinal pot is the quotidian. Presently, four more states plan to join the brigade following Colorado, Oregon and Washington in permitting recreational pot use. Definitely, Microsoft’s bold initiative to break the taboo on cannabis industry by attaching its name to the business is a big step forward in Corporate America.
Kind Financial will pursue marijuana compliance contracts by pitching Microsoft’s Azure cloud services at marijuana industry events and conferences. Kind and Microsoft already have bid on a contract in Puerto Rico, which began allowing medical use of pot this year, Dinenberg said. “We go after the contract and we are able to use the Microsoft sales team,” Dinenberg said. “They use their political connections. We use ours.”
The software is a new addition to Microsoft’s cloud computing business. In effect, it aims to help states that have legalized cannabis to keep tabs on sales, ensuring they confine within the legality.
Just last month, NASDAQ rejected MassRoots’ listing. It cited that the marijuana technology company might be seen as “aiding and abetting the distribution of an illegal substance.”
Analysts expect legal marijuana sales to tip $7 billion this year. Furthermore, the number could jump to $25 billion by 2020 if California voters approve of recreational marijuana sales this year.