Pubdate: Fri, 17 Jun 2016
Source: Boston Globe (MA)
Copyright: 2016 Globe Newspaper Company
Contact: http://services.bostonglobe.com/news/opeds/letter.aspx?id=6340
Website: http://bostonglobe.com/
Details: http://www.mapinc.org/media/52
Author: Nathaniel Popper, New York Times

MICROSOFT STEPS INTO MARIJUANA BUSINESS

As state after state has legalized marijuana in one way or another, 
big names in corporate America have stayed away entirely. Marijuana, 
after all, is still illegal, according to the federal government.

But Microsoft is breaking the corporate taboo on the drug this week 
by announcing a partnership to begin offering software that tracks 
marijuana plants from "seed to sale," as the industry puts it.

The software - a new product in Microsoft's cloud computing business 
- - is meant to help states that have legalized the medical or 
recreational use of marijuana keep tabs on sales, ensuring that they 
remain in the daylight of legality.

But until now, even that boring part of the marijuana world was too 
controversial for mainstream companies. It is apparent now, though, 
that the legalization train is not slowing down: This fall, at least 
five states, including California will vote on whether to legalize 
marijuana for recreational use.

So far, only a handful of smaller banks are willing to offer accounts 
to companies that grow or sell marijuana, and Microsoft will not be 
touching that part of the business. But the company's entry into the 
government compliance side of the business suggests the beginning of 
a legitimate infrastructure for an industry that has been growing 
fast and attracting lots of attention, both good and bad.

"We do think there will be significant growth," said Kimberly Nelson, 
the executive director of state and local government solutions at 
Microsoft. "As the industry is regulated, there will be more 
transactions, and we believe there will be more sophisticated 
requirements and tools down the road."

Microsoft's baby step into the business came through an announcement 
Thursday that it was teaming up with a Los Angeles startup, Kind, 
that built the software the tech giant will begin marketing. Kind, 
one of many small companies trying to take the marijuana business 
mainstream, offers a range of products, including ATM-style kiosks 
that facilitate marijuana sales.

Microsoft will not be getting anywhere near these kiosks or the 
actual plants. Rather, it will be working with Kind's "government 
solutions" division, offering software only to state and local 
governments that are trying to build compliance systems.

But for the young and eager legalized marijuana industry, Microsoft's 
willingness to attach its name to any part of the business is a big 
step forward.

"Nobody has really come out of the closet, if you will," said Matthew 
A. Karnes, founder of Green Wave Advisors, which provides data and 
analysis of the marijuana business. "It's very telling that a company 
of this caliber is taking the risk of coming out and engaging with a 
company that is focused on the cannabis business."
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MAP posted-by: Jay Bergstrom