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Microsoft is pivoting its voice assistant strategy by abandoning plans to position Cortana as a stand-alone voice assistant competing with incumbents Alexa and Google Assistant, according to comments by Microsoft CEO Satya Nadella, per Business Insider andThe Verge.
Rather, Microsoft plans to evolve Cortana into an app or service that will work to complement other voice platforms. The news doesn’t come as much of a surprise, given that Microsoft’s been pursuing an open, cross-platform voice ecosystem for Cortana over the last few years.
In August 2017, Microsoft joined forces with Amazon to allow Cortana and Alexa to communicate across a range of tasks. And in February 2018, Microsoft and Xiaomi signed a strategic memorandum of understanding to collaborate and potentially integrate Cortana into Xiaomi’s devices.
Microsoft’s scaling back of Cortana is a smart move, as the company’s been waging a lost battle against Amazon, Google, and Apple in the consumer-focused voice assistant market. Microsoft’s competitors have been infusing their respective voice assistants into as many facets of consumers' daily lives as possible, from the smartphone, to smart speakers and TVs, to wearables and hearables, to smart home appliances.
Cortana, on the other hand, only boasts a few integrations, like the Harmon Kardon Invoke smart speaker and the Surface Headphones. This is likely why Cortana lags in usage: Just over 2% of global consumers use Cortana the most, according to Business Insider Intelligence’s New Tech Survey.
But, by transforming Cortana to aid popular voice assistants, Microsoft is ensuring its voice assistant won't completely fade out. For instance, Cortana's deep integration with the Office Suite will allow Alexa users to leverage Cortana to schedule meetings, access calendars, and set reminders, enabling the voice assistant to satisfy a particular niche that can enhance Alexa's experience.
However, enterprises in North America and Europe will likely feel the burn of Cortana's loss. Cortana is the most popular voice assistant among enterprises in North America and Europe — nearly half (49%) of companies in these regions that use a voice assistant use Cortana, followed by Siri (47%), Google Assistant (23%), and Alexa (13%), according to Spiceworks.
Moreover, another 13% of enterprises in North America and Europe plan to implement Cortana in 2019. With Cortana no longer being a stand-alone voice assistant, there's a significant opportunity for its competitors to pull ahead and win over the enterprise voice assistant market.
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