US Healthcare Cloud Market Could Be Worth More Than $3.5B by 2020
A new Frost & Sullivan report revealed that the U.S. healthcare cloud market generated $903.1 million in revenue last year. The study expects the market to top $3.5 billion by 2020.
Frost & Sullivan said both the U.S. and European healthcare cloud markets are “in the growth phase” and expects more healthcare providers to invest in these markets over the next few years.
The report, titled “Opportunities in Healthcare Cloud Market in the U.S. and Europe,” also showed the following healthcare cloud market segments could soon grow:
- Infrastructure as a service (IaaS).
- Platform as a service (PaaS).
- Software as a service (SaaS).
Frost & Sullivan Healthcare Research Analyst Shruthi Parakkal pointed out several factors that could contribute to the expansion of U.S. and European healthcare cloud markets.
“Government initiatives to optimize healthcare information exchanges have underlined the importance of synchronized real-time data management and personalized healthcare delivery, lending impetus to the healthcare cloud market in the U.S. and Europe,” she said in a prepared statement. “Operational efficiency, lower upfront costs, access to on-demand capacity, quick deployment and easier management of IT staff are the major advantages strengthening the case for managed healthcare services.”
How are healthcare providers evaluating CSPs?
Cloud computing is the most widely adopted technology among healthcare providers, and cloud services providers (CSPs) must find ways to help these companies leverage cloud solutions.
So how can CSPs take advantage of the rapidly expanding U.S. and European healthcare cloud markets?
Parakkal said she believes CSPs must offer service-level agreements (SLAs) with data portability and reliability guarantees to attract prospects.
“Availability, scalability and reliability are the performance criteria used to benchmark a cloud solution,” she said. “Therefore, joining hands with industry experts to develop contracts between vendors and providers that clearly cover conditions on data access, retrieval and termination rights will accelerate the move to cloud solutions in the U.S. and [Europe].”