- Cloud service providers that offer guaranteed reliability and clear data portability terms will emerge as top contenders, finds Frost & Sullivan
LONDON, Nov. 12, 2014 /PRNewswire/ -- The healthcare cloud market in the US and Europe is in the growth phase, with average penetration rates expected to increase by 10 to 30 percent by the end of the decade. Investments in healthcare IT and evolving regulatory guidelines are making cost-efficient, secure cloud systems an ideal solution for the effective documentation, storage, management, and sharing of patient information.
New analysis from Frost & Sullivan, Opportunities in Healthcare Cloud Market in the US and Europe, finds that the European market earned revenues of $390.5 million in 2013 and estimates this to reach $1,275.7 million in 2020. The US market generated $903.1 million in 2013 and is expected to hit $3,541.2 million in 2020. The study covers the infrastructure as a service, platform as a service, and software as a service segments.
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"Government initiatives to optimise healthcare information exchanges have underlined the importance of synchronised real-time data management and personalised healthcare delivery, lending impetus to the healthcare cloud market in the US and Europe," said Frost & Sullivan Healthcare Research Analyst Shruthi Parakkal. "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."
On the other hand, persistent challenges pertaining to security, privacy and performance are slowing down the shift to healthcare cloud. The absence of standardisation in legacy systems leads to cumbersome and expensive data migration efforts, further deterring many potential users.
In addition, the lack of clarity regarding data preservation and portability in case a healthcare provider or cloud service vendor suspends its cloud services affects uptake. Hence, cloud service providers must offer service level agreements guaranteeing reliability and data portability to attract consumers.
"Availability, scalability and reliability are the performance criteria used to benchmark a cloud solution," stated Parakkal. "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 US and European healthcare space."
Opportunities in Healthcare Cloud Market in the US and Europe is part of the Connected Health Growth Partnership Service program. Frost & Sullivan's related studies include: Video Telemedicine Market in Europe, Global Assessment of Telecommunications Service Providers in Healthcare, Global Enterprise Content Management (ECM) Market for Healthcare, and U.S. Personal Emergency Response Systems Markets. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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SOURCE Frost & Sullivan