Healthcare Cloud Infrastructure Market Trends

Growth Drivers

• Minimized cost of data management in healthcare: The healthcare cloud infrastructure market offers cost-effective data storage, management, and analytic solutions. Flexible scalability of the cloud infrastructure can efficiently reduce the need for expensive IT hardware and maintenance. Further, it lowers operational costs while providing scalable and easily adjustable resources. For instance, in June 2024, Oracle launched the Health Insurance Data Exchange Cloud Service. The service helps healthcare insurers to partner with CMS, offering a cost-effective and secure data exchange. Auto-compliant features also help to introduce innovations in serving according to changing consumer preferences, preventing extensive investment.
• Technological advancements: Innovation in delivering medical services has influenced the healthcare cloud infrastructure market. Collaboration between healthcare providers and tech companies encourages the integration of advanced technologies in this industry. For instance, in September 2024, Oracle partnered with AWS to launch Oracle Database@AWS for cloud users. The partnership will provide consumers with a unified experience through autonomous resources and administration. Additionally, the integration of AI and Machine learning in data management is accelerating the adoption of new cloud technologies. In March 2024, Google Cloud announced the general availability of Vertex AI Search to revolutionize healthcare.

Challenges

• Resistance to healthcare transformation: Lack of knowledge in advanced technologies may restrain professionals from investing in the healthcare cloud infrastructure market. Organizations often prefer to stick with traditional systems instead of adopting innovative solutions. This may further shrink the consumer base, limiting maximum utilization. Small-scale healthcare providers can be prohibited from implementing cloud infrastructure due to high initial investment. A shortage of skilled operators can also hinder the effective usage of cloud solutions.
• Limited vendor switches: Organizations may resist switching vendors due to their reliance upon specific cloud service providers. Building trust in upgraded data management systems may become a hurdle for the healthcare cloud infrastructure market. Migrating allied data from previous operators for transitions can also become challenging. Further, this makes it difficult to convince consumers to invest in integrating multiple solutions. Concern about compliance with the regulatory framework can force healthcare institutions to rethink before changing their vendor. Moreover, refraining new companies from participation.