The North American healthcare cloud computing market will rise at a CAGR of 29.8 percent to $6.5 billion by 2018, according to a report by MarketsandMarkets. The market was valued at over $1.7 billion in 2013.
The North American Cloud Computing Market report examines applications, deployment, services (SaaS and IaaS), pricing models and end users, as well as components and geography.
The report names various different drivers of the market, including the Patient Protection and Affordable Care Act, improvements in storage technologies, and greater flexibility and scalability of data.
It also cites the $19 billion in subsidies provided by the Obama administration to doctors and hospitals to digitize records, and notes that while electronic medical records have existed for over 30 years, less than 10 percent of US hospitals had a fully integrated system until 2006.
T also names major players in the market, a list which includes cloud computing companies like Microsoft, Cisco, IBM, and VMware, as well as more sector-specific companies like athenahealth and CareCloud.
If health care related cloud services are to grow as rapidly as the report suggests, concerns about data security, which tend to dog cloud adoption in general, will have to be addressed. Those concerns are likely heightened in the short term after a consulting firm in England uploaded sensitive patient data to Google servers, sparking an intense debate about how confidentiality rules apply to the cloud.
Pressures to digitize health records and make them available to care providers in different locations can greatly benefit companies with a focus on security and regulatory compliance, as it has with Logicworks.