The Global Market for Healthcare Cloud Computing is Projected to Reach US$12.8 Billion by 2020

Changing Healthcare Economics Amidst Emerging Financial Realities Spurs the Healthcare Cloud Computing Market, According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size and demand forecasts on the global Healthcare Cloud Computing market. The global market for Healthcare Cloud Computing is projected to reach US$12.8 billion by 2020, driven by changing healthcare economics amid emerging financial realities and the ensuing need for smarter healthcare IT management solutions.

The global healthcare system which prospered and developed during the last half a century as  a result of the then witnessed period of boom in scientific development, economic progress and social stability, is now facing a period of financial crisis and meltdown. Deficit ridden European and U.S. economies and the current imposition of strict austerity measures implemented by governments to reduce debt loads are taking a bite out of every sector of the economy including healthcare. The healthcare industry is entering into a new era of change and paradigm shift in structure. Spiraling healthcare costs and the burden of universal healthcare now threatens to outstrip the rate of economic growth and expand beyond the governments’ ability to raise funds to meet the expenditure, thus sparking political debates over the continued acceptability of the current healthcare practices. The traditional model of public funding of healthcare is increasingly becoming obsolete and unaffordable as governments struggle to fund spiraling healthcare costs of their aging citizens. Confronted with the necessity of tackling soaring deficits, and alarming increase in healthcare expenditure, governments worldwide are legislating healthcare reforms. Key among these reforms is the migration from volume-based reimbursement to value-based reimbursement (VBR). The trend is exerting significant cost cutting pressures on hospitals, thereby opening up opportunities for the use of disruptive IT technologies like the cloud. Healthcare cloud computing stands at the forefront of this transformational change in healthcare delivery by enabling informative and collaborative decision making and providing shared information at the point of care in a manner that makes healthcare processes more effective and less expensive.     

The growing maturity of healthcare IT is also helping spur opportunities for cloud healthcare solutions, since hospitals consider migration to the cloud only after automation, standardization and centralization of their processes.  Business agility represents the final stage of technology maturity and cloud represents the only viable tool to achieve the same. While traditional IT is not designed to be part of a patient's social ecosystem, the cloud brings in disruption by deemphasizing legacy systems in favor of agility, and speed. Hospitals are being driven to embrace agility, decommission underperforming IT systems, and most importantly trust the cloud. Other major factors driving growth in the market include legislation of strict healthcare data compliance policies; growing demand for HIPAA-compliant cloud, growing interest in load balancing benefits of hybrid cloud; rise of the hospital BYOD concept; and spurt in healthcare IoT.  

As stated by the new market research report on Healthcare Cloud Computing, The United States represents the largest market worldwide. Asia-Pacific ranks as the fastest growing market with a CAGR of 20.6% over the analysis period, led by factors such as rise in the number of cloud ready Asian countries, focus on developing sustainable high quality care delivery models, and the growing popularity of lean healthcare management.

Major players in the market include Agfa-Gevaert Group, Allscripts Healthcare Solutions, Inc., AT&T Inc., athenahealth, Inc., CareCloud Corporation, Carestream Health, Inc., Cisco Systems, Inc., ClearDATA Networks, Inc., Dell Inc., EMC Corporation, GE Healthcare, IBM, Intel Corporation, Iron Mountain, Inc, Merge Healthcare Incorporated, Microsoft Corporation, NetDepot.com LLC, Oracle Corporation, VCE Corp., VMware, Inc., WebPT, and Xerox Corporation among others.

The research report titled “Healthcare Cloud Computing: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, mergers, acquisitions and other strategic industry activities of global companies.  The report provides market estimates and projections for all major geographic markets such as the US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia and Rest of Europe, Asia-Pacific (Australia, China, India, South Korea, and Rest of Asia-Pacific), Latin America (Brazil and Rest of Latin America, and Rest of World.  Key End-Use segments analyzed in our report include Clinical Information Systems (CIS) and Non-Clinical Information Systems (NCIS). The report also analyzes global market by service models - Platform-as-a-Service (PaaS), Infrastructure-as-a-Service (IaaS) and Software-as-a-Service (SaaS).

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