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5 Reasons Why Pharmaceutical Company Needs to Migrate to the Cloud

Pharmaceutical companies are one of the major beneficiaries of emerging IT trends and technologies like cloud computing. From innovative ideas for developing new drugs to customer engagement, Pharma companies are increasingly resorting to digital platforms to aid their tasks.

While companies understand the importance of adopting digital practices, the path to transformation poses many hurdles like regulation, financial factors as well as conventional processes. This is where cloud computing can come to their rescue. Cloud computing can help pharmaceutical companies increase revenue, improve quality and save time.

Over past few months, we have seen trends of bigger Pharma companies acquiring smaller ones, for example Sun Pharma’s acquisition of Ranbaxy. The demand for better data management and analytics is only expected to grow. With all the new challenges that these trends create, cloud computing is a technology that pharma companies cannot afford to miss.


Courtesy: Wikipedia

Below are the top 5 reasons why Pharmaceutical companies should migrate to cloud

1. Cost Reduction

A large number of cloud users have noticed that using cloud-based software and infrastructure reduces their cost significantly. It requires less development and testing resources. This implies that lesser expenditure for support and maintenance of applications too. Studies show that cloud based software can cost 50% lesser than traditional software application over 10 years. Also, typical cloud based software would take around 4 to 6 months to be ready, whereas in house hosted apps will take around 1 to 3 years to be developed and well tested before deployment.

2. Improved Efficiency

Cloud applications have ability to automate many typical business processes. If manual activities and duplicate data are removed, it can help your product hit the market sooner. Migrating to cloud can also improve collaboration between various departments, suppliers and distributors. With early access to wide range of data, businesses can gather valuable insights about the performance systems and plan their future strategy accordingly. It can also provide you information about capacity, availability and relationship between employees, equipment and materials. Being able to understand the scenario in real time gives you power to operate more efficiently and make better decisions.

3. Decentralization

When a company strives to go global, clinical trials and workforces need to become decentralized which requires IT infrastructure to be decentralized. Building out exclusive data centers can prove to be expensive and distract from a Pharma company’s core business objectives. Cloud computing improves web performance for users in remote locations without having to build out additional data centers.

4. Flexibility

One of the major challenges that Pharma companies face is the need to rapidly structure their physical infrastructure and scale up or down certain requirements to better service their operations. Applications hosted on site aren’t as quick to quickly structure, expand and scale up processes. If these requirements are not met on time, it can put a company in danger of making serious loss as compared to its competitors. Migrating to cloud can help to deploy scalable IT infrastructure that can quickly adjust itself as peer the company requirements, making sure that the resources are always available when required. Thus, it not only improves the speed with which companies can adjust to new market requirements but also checks money being spent on resources that remain under-utilized.

5. Security

There were long-held security concerns about cloud computing, not only in Pharma companies but also in whole manufacturing sector. But now, this fear is being overcome by the realization that cloud hosted data is far more secure than data hosted on site and quite accessible. Cloud computing allows applications to run independently of hardware through a virtual environment running out of secure data centers. Hence, employees can access same apps and documents anywhere, thus breaking down barriers of geography and converting any place into a virtual “office”.


Above list is a short compilation of the benefits that cloud computing offers to pharmaceutical companies. There is lots more that cloud based technology can provide to improve their long term ROI. Cloud computing can help pharma companies develop innovative products like personalized medicine by improved customer engagement techniques to gather data for effective marketing.

If you have got additional ideas on how pharmaceutical company can benefit from migrating to cloud computing, feel free to leave your comments.