Wednesday, August 31, 2011

Healthcare IT Spending on Cloud to Surpass $1 Billion

The healthcare and social services vertical marketplace is extensive. It includes companies that provide medical care and social assistance for individuals -- which includes ambulatory healthcare services, hospitals, nursing and residential care facilities, and social assistance services.

Healthcare has been a growth vertical in U.S. business markets.

According to the latest market study by In-Stat, research supports a forecast of continued growth, with healthcare spending $518 million on Infrastructure as a Service (IaaS) in 2015.

Overall telecom spending by the healthcare and social services vertical was just under $16 billion in 2010.

Wireless communications is the largest of the product categories, comprising about 40 percent of telecom spending in the healthcare and social services vertical. Cloud computing and managed services is the fasting growing component.

Wireline data and wireline voice comprise the remainder of the telecom spend.

Increased Demand for Managed Cloud Offerings

"The healthcare vertical segment, across all sizes of business, and across nearly all product groups, is fast becoming the most robust business vertical segment in U.S. business markets," says Greg Potter, Analyst at In-Stat.

Demand for cloud computing services in particular has exploded and In-Stat believes there's nothing that would indicate the trend won’t continue -- at least through 2015.

Additional insights from the In-Stat study include:
  • Small businesses with 20 to 99 employees will be the fastest growing size segment in healthcare, growing over 35 percent from 2010 to 2015.
  • Enterprise wireless spending in healthcare will increase roughly 12 percent from 2010 to 2011.
  • Healthcare public cloud computing spending will surpass $1 billion in 2013.

2 comments:

Ray_Osborne said...

Good read! I look forward to reading follow-ups on this article. A story addressing the areas that receive the highest prioritization with cloud technology by healthcare enterprises would be meaningful.

-RKO

David Deans - BTR moderator said...

@Ray, thank you for the feedback. FYI, past and future stories on this topic can be found under the "healthcare" tag on BTR.