U.S. Health Care Cloud Market Projected To Reach $3.5B by 2020
November 22, 2014 in News
Details of Analysis
According to the report, the U.S. health care cloud market is projected to reach $3.5 billion by 2020, up from $903 million in 2013 (McCann, Healthcare IT News, 11/17).
The analysis found that cloud service vendors with HIPAA-compliant hosting services that cater exclusively to health care customers are likely to lead the market growth (Hall, FierceHealthIT, 11/18).
Shruthi Parakkal, a Frost and Sullivan health care research analyst, identified several benefits for health care entities attributed to transitioning to the cloud that could drive the market’s growth, including:
- Easer IT staff management;
- Lower upfront costs;
- Operational efficiency;
- On-demand access to data; and
- Quick deployment (Frost and Sullivan release, 11/12).
Privacy, Security Concerns
However, the report noted that concerns over privacy, the security of the cloud and its performance pose barriers to widespread adoption of cloud services.
Specifically, some privacy and security officers are worried that non-health care organization employees could access health data if they are employed by cloud providers.
Stakeholders also are concerned about data:
- Portability (FierceHealthIT, 11/18); and
- Preservation (Healthcare IT News, 11/17).
To mitigate those concerns, cloud service vendors must provide service level agreements that guarantee reliability and data portability, according to the report (Frost and Sullivan release, 11/12).
Parakkal said that partnering “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.” (Healthcare IT News, 11/17).