Microsoft and marijuana, not two words we might usually associate, although Microsoft founder Bill Gates is said to have smoked weed in college and been open about his support for the legalization of the plant in his own state.

Microsoft’s relationship with cannabis just got much more real after a partnership was formed between the company and Kind Financial, a start-up based in California that makes software for the tracking of marijuana production and helps keep weed producers from veering outside of the many regulations that differ from state to state.

“This is an entirely new field for us,” Kimberly Nelson, Microsoft’s executive director of state and local government solutions, told the New York Times, adding, “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 will provide software as part of its cloud-based Azure Government, which will allow governments from state to state to track marijuana to meet legal standards and for tax purposes.

In a press release Kind stated, “In my opinion, their technology offers the most advanced software solution available and it provides government with critical tools to ensure transparency and accountability, which is imperative for government agencies managing a successful cannabis program.”

Marijuana has now been legalized in 25 U.S. states, while in this coming fall another five states, including California, could add to that list depending on how the vote goes. The legal weed business is growing, with reports stating that it might increase from $6.5 billion this year to as much as $25 billion come 2020.

At a federal level marijuana is still illegal, making the relationship between banks and anyone involved in the business of growing or distributing weed a difficult one. Only last month MassRoots, a technology platform for the cannabis industry, was denied a request to trade shares on Nasdaq. The exchange said that listing such a company would be, “Aiding and abetting the distribution of an illegal substance.”

Perhaps with this recent move by Microsoft the business of legal marijuana might have a little more legitimacy.

Photo credit: Michelle Grewe via Flickr