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Healthcare cloud computing growth due in part to curbing infrastructure costs

Cloud solutions help organizations reduce infrastructure costs and interoperability issues, and aid in complying with regulatory standards.

Jeff Lagasse, Associate Editor

The global healthcare cloud computing market size is expected to reach $27.8 billion by 2026, exhibiting a CAGR of 11.8% over the forecast period, according to findings published by

The associated benefits of data analytics, and an increase in demand for flexible and scalable data storage by healthcare professionals, is expected to drive the demand for these services during that time frame.

Healthcare organizations are digitizing their IT infrastructure and deploying cloud servers to improve various facets of their systems. These solutions help organizations reduce infrastructure costs and interoperability issues, and also aid in complying with regulatory standards, the report found.

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Because of this, rising demand from health professionals to curb IT infrastructure costs and limit space usage are anticipated to boost market growth over the forecast period.


Among the key findings are that non-clinical information systems -- such as revenue cycle management, health information exchange, financial management, etc. -- accounted for the largest revenue share in the space in 2018.

The financial management segment held a 23% share of the non-clinical segment in 2018, while billing and accounts management is expected to grow by almost 12%.

The private deployment model dominated the overall market owing to its benefits and ease of usage, the report found. The Software as a Service (SaaS) model accounted for the largest revenue share as of 2018 due largely to its wide acceptance. This model enables access to applications on a cloud from various devices.

The pay-as-you-go pricing model, meanwhile, is expected to gain popularity in the coming years, as the consumer only pays for services being used.

An increase in government initiatives to develop and deploy IT systems in the industry is one of the key drivers of the market, findings showed. Moreover, an increase in partnerships between private and public players -- and the presence of a large number of players offering customized solutions -- are some of the factors anticipated to drive demand in the coming years.


Some key players of the healthcare cloud computing market include Athenahealth, Cerner Corporation, CareCloud Corporation, Carestream Corporation, Epic Systems Corporation, Dell Inc., and Sectra AB.

Companies are forming various strategic alliances with clinical research organizations and medical devices companies to further expand their profit margins in the healthcare IT sector. These types of strategic collaborations are expected to aid market growth in the coming years.


From a clinical standpoint, storing personal health information in the cloud is both an asset and a potential area of risk.

For the many who have migrated to the cloud to streamline and cut costs, experts recommend developing a strategy that isn't just focused on one cloud but the whole cloud, and knowing the controls required for protection.

Twitter: @JELagasse

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