High Demand for Cloud Computing in Healthcare

Cloud computing systems, off-site servers that store data, are among the products most in demand from healthcare organizations. These are the latest findings of Kalorama Information (New York, NY, USA), an independent medical market research firm.

Cloud technologies are generally off-site, third-party-managed computing resources that can include computational resources, additional data storage, and advanced software services such as electronic medical records (EMRs) or data analytics. Expenditure on cloud services and products in healthcare information technology (IT) are expected to increase at a rate of 21% over the next five years; this compares to overall spending on all healthcare technology solutions, which will increase at a lower rate of 10.5%. The high growth rate is attributed to incentives to adopt a higher level of IT in healthcare, growing government mandates, limitations in digital storage, staffing shortages, and a lack of internal IT infrastructures in many countries.

Other reasons for the high growth rate, besides storage needs, are staffing issues that are affecting hospitals wishing to modernize. Even if the physical space to host servers was available, suitable employees (i.e., those with technological proficiency) can be hard for not-for-profit organizations to employ and maintain. A further reason is that the demand in healthcare is known to the cloud industry and should increase competition. Cloud services offered include a number of applications, including (but not limited) to EMR services, archiving, storage, patient-provider interactions, financial services and offerings, and more.

“Electronic Medical Records is driving this market,” said Bruce Carlson, publisher of Kalorama Information. “Hospitals are building great systems for gathering electronic records, but they need solutions to store all of that data, and it can’t be a new server wing that might compete with needed space for care.”

Most of the bigger players, such as Cerner (Kansas City, MO, USA), Cisco (San Jose, CA, USA), Dell, or EMC (Hopkinton, MA, USA), have a wide geographical presence and have offices located around the world.

Companies in the market for cloud computing in healthcare IT can offer several types of solutions, or a combination of solutions. The companies enter into contractual relationships and strategic alliances with resellers and distributors through which they broaden their distribution network as well as cater to industries, which are not served by the direct sales force.

Related Links:
Kalorama Information
Cisco
EMC