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Market analysis, prediction and forecast of cloud healthcare

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Figure 1 Some scenarios for cloud based healthcare system (Source: Cloud Computing in Healthcare Industry, MC stands for medical center)

I always read any cloud related articles with interest. Cloud has proliferated and radically transformed different facets of our life. This disruptive technology is having a profound impact on all industry sectors and the economy in this information age. Healthcare is one such sector witnessing significant benefits from cloud computing.

Governments worldwide are spending significant amount of GDP on healthcare. Healthcare is poised to become the largest industry sector in many countries around the world. Healthcare enhanced by information and communication technology (ICT) can dramatically change our lives, reduce cost and provide better quality of life. Cloud computing in healthcare has started to get traction for the last four to five years. With rapid adoption of cloud computing, healthcare is witnessing application of cloud computing.

Recently two articles (Article1 and Article 2) have drawn my attention. These two blog articles discuss about market forecast of cloud healthcare in the next five years. The data presented there is based on market research and forecast performed by MarketsandMarkets. I am summarizing the findings below:

  1. Global healthcare cloud computing market will reach $5.41 billion by 2017
  2. This represents a Compound Annual Growth Rate (CAGR) of 20.5 percent from 2012 to 2017
  3. In 2011, cloud had only four percent share of healthcare market. Cloud market share will grow to 20.5 percent a year by  2017
  4. Now a large number of healthcare organizations (HCOs) are planning to migrate to cloud in the next five years.
  5. The healthcare cloud computing market is a fragmented in nature and no provider occupies more than five percent share.
  6. As mentioned in MarketsandMarkets research, technological advanced in healthcare is far outpacing legacy systems used by hospitals and healthcare providers
  7. This report has classified cloud healthcare applications in two categories. These are –
    1. Clinical Information Systems (CIS) which consists of Electronic Medical Records (EMR), Picture Archiving and Communication System (PACS), Radiology Information System (RIS), Computerized Physician Order Entry (CPOE),    Laboratory Information System (LIS),Pharmacy Information System (PIS) and others
    2. Non Clinical Information Systems (NCIS) which consists of Revenue Cycle Management (RCM) Automatic Patient Billing(APB), Cost accounting, Payroll and Claims management
  1. Software as a service, platform as a service and infrastructure as a service are three service models for cloud healthcare.
  2. Public, private and hybrid deployment models are seen in cloud healthcare market. However, due to data privacy, sensitivity and regulatory guidelines, adoption of public cloud in healthcare has been very slow. But private and hybrid cloud are poised to grow.
  3. Interoperability has been another factor which impedes adoption of cloud in healthcare.

These predictions, forecast and current adoption pattern tell us that we will definitely see widespread adoption of cloud computing in healthcare in coming days.

Senior Managing Consultant at GBS Cloud Centre of Competence

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