• by bcarlson@marketresearch.com
  • October 1 2013

Cloud Computing in Healthcare A Nearly 4 Billion Dollar Market

Cloud Computing in Healthcare A Nearly 4 Billion Dollar Market

Cloud computing systems, off-site servers that can store information accessible to healthcare organization employees at a different location, are among the healthcare IT products most in demand, according to Kalorama Information.   The global market for cloud computing in healthcare is estimated to reach $3.9 billion for 2013, representing 21.1% growth over the 2012 year.  The push to adopt a higher level of IT in healthcare, growing government mandates, limitations in digital storage, staffing shortages and a lack of internal IT infrastructures in many countries have provided a great opportunity for the cloud to be implemented.   The finding was made in Kalorama’s latest report, The World Market for Cloud Computing in Healthcare.

“EMR is driving this market,” said Bruce Carlson, Publisher of Kalorama Information.  “Hospitals are building great systems for gathering electronic records, but they need solutions to store all of that data, and it can’t be a new server wing that might compete with needed space for care.”

The report said spending on healthcare cloud services and product are expected to increase at a rate of 21% for the next five years.  This is compared to overall healthcare IT spending on all technology solutions which will increase at a rate of 10.5%, according to the report.  In addition to storage needs, staffing issues are hurting hospitals.  Even if server space was available, employees with technology proficiency can be hard for not for profits to hire and keep.  In addition, the demand in healthcare is known to the cloud industry and should increase competition and offerings.  

We expect vendors will offer options directly focused on meeting demands of the health industry.  The growth seen in the last year is expected to remain steady. -Melissa Elder, analyst and author

The report said that companies in the market for cloud computing in healthcare such as Cerner, Cisco, Dell or EMC can offer several types of solutions, or a combination of solutions.  Most of the bigger players have a wide geographical presence and have offices located around the world. The companies enter into contractual relationships and strategic alliances with resellers and distributors through which they broaden their distribution network as well as cater to industries which are not served by the direct sales force.

The report estimates the size of the market and provides forecasts.  The report contains breakouts of the market by type of cloud service offered.  It also provides readers with breakdowns of sales by regions and profiles major companies in the industry.  More information on this report can be obtained at: http://www.kaloramainformation.com/Cloud-Computing-Healthcare-7776623/