Cloud computing is a ‘platform that delivers services or shares resources, software, and information via the internet. The information is stored on a physical server maintained and controlled by a cloud computing provider or vendor. The users can easily access stored information from any location on the cloud via the internet.
Life before Cloud Computing
Traditionally, the applications used by businesses are complex and expensive. The amount and variety of hardware and software required to operate them are quite difficult. Thus, the need for greater flexibility and lower capital costs is continuing to increase the demand for cloud-based services. Cloud computing saves infrastructure and personnel costs.
A Cisco research indicates that both consumer and business applications are contributing to the growing dominance of cloud services. Streaming videos, social networking, and search are among the most popular cloud applications for consumers. Enterprise Resource Planning (ERP), collaboration, and analytics are the top growth areas for business users.
The global healthcare cloud computing market has a large chunk of healthcare application users. However, most healthcare organizations are largely concerned about the privacy and security of patient-related information. They are seeking a platform wherein they can easily access health information. The cloud computing technology in the healthcare industry is typically used for memory, computation, networking, and storage. Therefore, healthcare companies are accepting cloud computing as an effective tool for data storage because of the large amount of data churned out.
The global healthcare cloud computing market is expected to register a CAGR of 18% during the forecast period of 2018-2023, reaching approximately USD 11.01 Billion by the end of 2023. This growth may be attributed to the increased adoption of healthcare informatics and implementation of cloud-based software as it comprises less investment and minimal support requirements in terms of technology. A high-volume storage and accessibility provided by these cloud-based applications are thus favoring the market. Also, the implementation of several supportive reforms and other government programs such as the Patient Protection and Affordable Care Act (PPACA) would further expand the demand for the healthcare cloud computing over the coming years.
The Growth Drivers of the Market
The major factors which will drive the growth of healthcare cloud computing market in the coming years are:
– The rise in the adoption of information technology in the healthcare sector
– The rising need to reduce the healthcare costs
– The implementation of the Patient Protection and Affordable Care Act (PPACA)
– The high-volume storage capacity that can be accessed from any region
– Clinicians can access the medical records of their patients on mobile devices
– Hospitals and clinics can store medical images produced in huge volumes
– Instant accessibility and sharing options among the healthcare personnel
– Enhanced quality of healthcare
– The generation and proliferation of new payment models
– The cost efficiency of cloud technology
Moreover, the telecloud and the formation of Accountable Care Organizations (ACOs) are creating growth opportunities for the healthcare cloud computing market.
The Major Cloud Players
There are large numbers of regional and international vendors across the globe that make the healthcare cloud computing market a highly competitive and diversified one. Also, these vendors are increasingly investing in the development of specific and customized cloud-based solutions to expand their presence in the global marketplace. Since there is less service differentiation, these players are majorly focusing on the improvements and various ways of building the capabilities and quality of products. These players are actively providing variations to the products and services and also indulging in continuous new product launches to gain the competitive advantage in the industry.
Some prominent players in the market are:
The Segmentation of the Global Healthcare Cloud Computing Market
The global healthcare cloud computing market is segregated based on diverse criteria. Some of them are:
The most popular form of cloud-based services to store healthcare data is the Software as a Service (SaaS) application according to research. The reformation of the healthcare Business Process Outsourcing (BPO) service by Business Process as a Service (BPaaS) will drive the growth prospects for the global healthcare cloud computing market during the forecast period. The major benefits of cloud-based BPOs are their ability to help healthcare organizations to reduce costs, develop global delivery models, and provide secure data access, reliability, scalability, and agility.
The Benefits of Cloud Computing for Healthcare Organizations
The advantages of cloud computing are considered far too good. However, there are certain restraining factors related to data privacy, rising number of cloud data breaches, and data portability complications. There are opportunities in the global healthcare cloud computing market to develop responsible care organizations and to increase the scope for healthcare cloud computing and the Telecloud. The increase of the cloud computing solutions for telemedicine is the current trend for this market. The decision to opt for cloud-based services is high with substantial saving of costs for installation and maintenance, reduced downtime, negligible manpower involved in monitoring the servers, and no collateral investment in the infrastructure required to house the servers in-house. However, the security of patient data on the cloud is a crucial issue that is likely to restrain the growth of this market. But, amidst all the concerns and pessimism that may stem from a few skeptical quarters, the potential seems great for the healthcare cloud computing domain, albeit only if it is channelized properly.