Reports: Healthcare Orgs Warming to Cloud, Likely to Spend $55 Billion Annually on Cloud by 2025
SELBYVILLE, DE & REDWOOD CITY, CA — Two major reports on the healthcare computing dropped today, with potentially large implications for the future of healthcare IT architecture.
First, the Datamation State of the Cloud, 2019 report revealed that while healthcare organizations are (finally) warming to the Cloud, they are still greatly concerned with the costs of Clou Computing. However, susprisingly, most still plan to boost their Cloud budget. Another primary finding was an overarching a desire to cut costs emerges as a key theme, even as companies plan to spend more on cloud. This apparent contradiction reflects the fact that, in a business environment that requires complex tools to remain competitive, the cloud is now absolutely primary – no matter the expense.
When it comes to costs, Cutting costs was the top priority, at 29 percent. Many companies face a growing monthly invoice from cloud providers as they access ever more cloud-based storage and compute, and they deploy more mission critical applications to the cloud. Employees continue to launch shadow IT projects, adding yet more costs to the cloud bill. the next two priorities were improving security and compliance, with 25 percent, and using the cloud to access tools for AI, machine learning and Big Data with 19 percent.
The report remarks that a focus on AI, machine learning and Big Data is all but certain to increase in the years ahead, since these cloud-based data tools cannot – for most companies – be built in-house, and they are essential to remaining competitive.
Elsewhere on the net, a Market Study Report about the healthcare Cloud Computing market revealed that the segment in question was valued around $4 Billion USD in 2018 and will exceed $55 Billion USD by 2025. This is largely due to the fact that digital transformation in hospitals through cloud computing will lead to expected growth. The North American healthcare cloud computing market will witness over 15% CAGR by 2025. The study finds that growing technological advancements along with rising healthcare expenditures will foster such regional growth.