Health care executives are losing their skepticism of cloud computing and cloud-based services, with many planning investments as a means of controlloing costs.
The health care industry is losing its skepticism of cloud computing, with more than one-half of executives seeing cloud-based resources as a means of controlling capital costs. Planned health care investments could bring the cloud health care market to $10 billion annually, according to Frost & Sullivan.
The Lowdown: While the health care industry has spent much of the past decade trying to modernize and digitize, industry executives have kept cloud resources at arm’s length due to security and privacy concerns. Health care is one of the most regulated industries, covered by such laws as the Health Insurance Portability and Accountability Act (HIPAA) and HI-TECH Act. These laws and regulations carry heavy
The Details: Security and privacy concerns are abating in the face of rising costs of on-premises IT systems. According to KLAS Research, 69 percent of health care executives are giving cloud-based services and resources a second look.
The Impact: A shift in cloud attitude among health care executives could create a boom for cloud providers and their partners. Cloud companies including Microsoft, Amazon, and Google have big investments in health care practices. The shift could trickle down to the regional level, where solution providers play significant roles in supporting clinics and health care practices.
The Buzz: “This is not a nice-to-have anymore. It is very quickly becoming an institutional imperative. The leading organizations are moving very quickly in that respect,” said George Gardner-Serra, partner at Clarity Insights, a consulting firm specializing in data analytics.
Counterpoint: Promises of health care booms come and go. The health care market is always attractive because it makes up as much as 18 percent of the U.S. economy and, as a vertical sector, is one of the largest consumers of IT goods and services. Health care cloud computing is an inevitability, but tapping into increased spending isn’t as simple as selling conventional data center products.
Channelnomics Point of View: While many technology vendors push partners to sell to the health care industry, few actually develop health care specialties and practices. The most successful health care vendors and solution providers are those that form independent teams, hire specialists, and develop system frameworks for addressing health care customers’ unique IT needs. If there’s a health care cloud boom, the channel partners that will benefit first and most are those with truly specialized practices.