Although the healthcare technology is an integral part of the healthcare industry with a total market size of approximately 500 million U.S. dollars, most healthcare institutions still rely on outdated software systems that have been repeatedly patched. Instead of spending more time on patient care, healthcare professionals lose a lot of time due to these inflexible and unreliable systems. The answer to these challenges is cloud computing.
WHY CLOUD COMPUTING?
Digital transformation will be able to address these challenges by:
- Providing remote accessibility, unprecedented scaling, data integration and access advantages to medical practitioners.
- Securing both clinical data and patient information.
- Improving both patient care and patient experience.
- Democratizing data and giving patients control over their own health.
GLOBAL HEALTHCARE CLOUD COMPUTING SNAPSHOT
The revenue of the global healthcare cloud computing market is expected to reach $52.3 billion by 2026 up from $11.59 billion in 2020, growing at a Compound Annual Growth Rate (CAGR) of 28.5 percent during the period.
The main growth factors till 2026 include increased adoption of Software-as-a-Service (SaaS) cloud service, with a market share of 63.7% in 2020, owing to the increasing number of providers and payors migrating towards more SaaS healthcare computing services to manage the growth in patient data.
The strong revenue growth of the top 4 market participants – AWS, Microsoft Azure, Google Cloud Platform (GCP), and IBM Cloud – has been due to their strong investments to build their healthcare cloud capabilities in secured and compliant (HITRUST CSF, HIPPA, GDPR) data storage, data interoperability (DICOM, HL-7, FHIR), Big Data and analytics, Artificial Intelligence and Machine Learning (AI/ML).
Other significant market participants include Oracle Cloud Infrastructure, Rackspace, Fujitsu Cloud Services, Tencent Cloud, DigitalOcean, SAP Cloud, Salesforce Cloud, Cisco Cloud, VMWare, Infor, NetApp, and Nutanix.
GROWTH OPPORTUNITY FOR HEALTHCARE CLOUD
The 2020 Frost and Sullivan global cloud user survey indicates that 64% of IT leaders engaged third party assistance to develop and implement a hybrid strategy. Frost and Sullivan believes that challenges posed by Covid-19 in 2020 and 2021, will reinforce the trend.
HEALTHCARE COMPUTING DRIVERS
Patient experience is improved through digital health tools such as online video conferencing and virtual visits.
Healthcare organizations reduce cost and improve care delivery by adopting new technology.
Many Healthcare organizations are migrating to hybrid and multi-cloud adoption to become more innovative, more competitive and meet their consumer demand for anytime, anywhere care.
Due to the effects of the pandemic, healthcare organizations are now focusing on long-term strategies for their cloud and digital transformation plans. This should continue to positively impact the global healthcare cloud computing market for a long time to come.
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