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=== Navigating Challenges === Microsoft faced a complex landscape of challenges in 2021, including supply chain disruptions, cybersecurity threats, and regulatory scrutiny. The company launched the '''Microsoft Supply Chain Platform''' to bolster supply chain security and resilience against cyberattacks<ref>{{cite web |url=https://www.microsoft.com/en-us/security/blog/2023/04/13/improve-supply-chain-security-and-resiliency-with-microsoft/ |quote=Microsoft launched the Microsoft Supply Chain Platform to help companies protect their supply chains against cyberthreats. }}</ref>. It also expanded its cybersecurity efforts across '''23 countries''', addressing the global talent shortage in this critical area<ref>{{cite web |url=https://blogs.microsoft.com/blog/2022/03/23/closing-the-cybersecurity-skills-gap-microsoft-expands-efforts-to-23-countries/ |quote=Microsoft expanded efforts to close the cybersecurity skills gap in 23 countries in 2021. }}</ref>. Competitive pressures were intense, particularly from AWS, Google Cloud, and Apple, in key sectors like cloud computing, enterprise software, and gaming. While Microsoft Azure increased its competitive edge over AWS, the cloud market showed signs of cooling as companies sought to optimise cloud spending<ref>{{cite web |url=https://www.zdnet.com/article/cloud-computing-microsoft-azure-ups-the-pressure-on-aws/ |quote=Microsoft Azure increased competitive pressure on AWS in 2021, especially among enterprises. }}</ref>. On the regulatory front, Microsoft contended with antitrust investigations and evolving data privacy laws, particularly in the U.S. and Europe. The acquisition of Nuance Communications, approved by the European Commission, was a strategic move to strengthen its industry cloud strategy, particularly in healthcare<ref>{{cite web |url=https://techcrunch.com/2021/04/12/microsoft-is-acquiring-nuance-communications-for-19-7b/ |quote=Microsoft announced its intent to buy Nuance Communications for $19.7 billion in 2021. }}</ref><ref>{{cite web |url=https://ec.europa.eu/commission/presscorner/detail/en/ip_21_7067 |quote=The acquisition of Nuance Communications by Microsoft was approved by the European Commission, raising no competition concerns in the EEA. }}</ref><ref>{{cite web |url=https://news.microsoft.com/2021/04/12/microsoft-accelerates-industry-cloud-strategy-for-healthcare-with-the-acquisition-of-nuance/ |quote=The acquisition of Nuance Communications was part of Microsoft's strategy to accelerate its industry cloud strategy, particularly in healthcare. }}</ref>.
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