healthcare IT

Why Healthcare Organizations Need to Turn to Cloud

It is important for every healthcare organization to develop an effective IT roadmap in order to provide best services to customers and patients. Most healthcare payers and providers are moving to cloud based IT infrastructure in order to utilize the benefits that were once considered unimaginable.

But, before moving ahead, let’s check out some industry statistics and research studies.

Healthcare Organizations and Cloud Computing Statistics

Healthcare Organizations and Cloud Computing Statistics

Source: Dell GTAI

According to Dell’s Global Technology Adoption 2015, adoption of cloud technology increased from 25% in 2014 to 41% in 2015 alone.

Spending on cloud computing or in simpler terms – hosted medical services – in global healthcare was $4.2bn in 2004, but this will grow by 20% every year until 2020, reaching $12.6bn.

North America is the biggest consumer of cloud computing services and by 2020 its spending on cloud based solutions will reach $5.7bn.

What kind of data can be moved to Cloud?

Critical healthcare applications can be hosted on cloud platform in order to increase their accessibility and availability. Apart from them, below mentioned hardware, software and data can also be moved to cloud.

  • Email
  • Electronic Protected Health Information (ePHI)
  • Picture archiving and communication systems
  • Pharmacy information systems
  • Radiology information systems
  • Laboratory information systems.
  • Disaster recovery systems
  • Databases & Back up data

Why Healthcare Organizations should move to Cloud?

1.      Low Cost

Healthcare organizations can reduce IT costs to a significant extent by moving to the cloud. Cloud based software require lesser resources for development and testing. This implies fewer resources for maintenance and more robust solutions at a lesser cost. It is believed that over a period of 10 years, cloud based applications cost 50% lesser than traditional in-house hosted applications.

2.      More Accessibility

It is important that healthcare data is available to doctors as quickly as possible so that they can diagnose and analyze the situation of patient soon and take the right steps to improve the condition. Cloud computing improves web performance for users in remote locations as well without having to build out additional data centers.

3.      Higher Flexibility

Cloud based platform allows organizations to scale up or down based on their needs. With conventional on-premise hosted solutions, it can be tough to align their physical infrastructure quickly to varying demands. Migrating to cloud can help to deploy scalable IT infrastructure that can adjust itself as per the requirements, making sure that the resources are always available when required.

4.      Improved Efficiency

Moving to cloud also helps to avoid money being spent on infrastructure to be under-utilized. With early access to wide range of data, businesses can gather valuable insights about the performance of systems and plan their future strategy accordingly. Pharmaceutical companies, hospitals and doctors can focus on their core objective – giving the best possible treatment and service to patient – while the cloud service providers take care of their IT needs.

5.      More Reliability

Cloud based software remains available 24*7 from anywhere to any authorized personnel having an internet connection. Apart from that, it is easier to recover from loss due to natural disasters because of its distributed architecture.


The cloud’s resiliency and high availability make it a cost-effective alternative to on-site hosted solutions. However, security has been a major barrier to cloud adoption in many verticals. It’s especially critical in healthcare industry which is regulated by HIPAA and HITECH Acts and plays a major role in such organizations’ decisions to move their data into a public cloud app.