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Off-Premises Computing Perception 2017
Energy Shifts to the Cloud
Author
Mike Smith
Author
Lois Krotz
Over 70% of healthcare organizations that participated in this study have moved at least some applications or IT infrastructure off-premises. While most of those using off-premises computing are doing so through a hosting environment, future plans lean heavily toward the cloud. For this research, 144 US-based healthcare organizations were asked about the off-premises cloud and hosting options they are currently using, whether they are considering moving to the cloud, why they would or would not move in this direction, and which vendors they are considering or would consider for future off-premises computing needs.
1. EMR Most Popular Area to Move Off-Premises: Cerner Biggest in Industry and Growing, Hosting Newcomer Epic Gains Traction
Nearly 60% of those using off-premises services have moved their EMR applications to a hosting or cloud environment. Cerner is the most used off-premises computing provider in the industry and continues to garner interest from existing and potential clients. Several clients feel hosting is one of Cerner’s strongest capabilities, and Cerner has been Best in KLAS in Application Hosting for the past eight years. Epic, a newcomer to hosting, has a handful of organizations using their hosting services. Momentum is building—nearly a quarter of healthcare organizations considering off-premises computing services are considering moving their Epic applications to Epic’s data center, making Epic the most considered among EMR vendors.
2. IaaS Growing Fast; Amazon and Microsoft Lead in Considerations
The top area providers are or would consider transitioning off-premises is IT infrastructure, often to the cloud through an IaaS model. Cloud infrastructure providers are the most commonly considered, with Microsoft and Amazon at the top of the list. Respondents most often consider Amazon for their future IaaS and PaaS needs, and many perceive them as an infrastructure leader. While Microsoft is considered more frequently overall than other off-premises computing providers, they are just behind Amazon among those who would consider or are considering broad infrastructure solutions. Many start cloud computing with Office 365, adopt it for other Microsoft products, and then expand more broadly to IaaS. Many plan to use public cloud providers for storage, backups, file sharing, email archiving, websites, or non-clinical applications; however, they are apprehensive about putting sensitive PHI in the cloud.
3. ERP/HCM in the Cloud Picking Up Speed: SaaS Solutions Minimize Opportunities for Third-Party Firms; Infor Most Used and Considered Despite v.10 Challenges
Of the 17% of provider organizations that have moved their ERP/HCM applications off-premises, nearly three out of four have done so through a hosted deployment model. However, this will shift strongly toward the cloud in the future. All major software vendors except McKesson have developed cloud-based applications. Workday and Premier products are delivered exclusively through a SaaS model. While Oracle and Infor primarily support legacy customers, both have recently developed new cloud-based solutions that can be deployed on-premises or in the cloud. Of those considering moving ERP/HCM applications off-premises, over 80% plan to do so in the cloud. Infor is by far the most used and considered for ERP/HCM off-premises computing. Several Infor v.10 clients are unsatisfied due to missed expectations and a perceived lack of expertise with off-premises services; however, many are optimistic about Infor’s cloud-enabled v.11 product.
4. Reducing Capital Outlay and Lowering Costs Top Reasons Providers Would Move to the Cloud; Security Concerns Key Reason Many Stay Away
About 69% of healthcare organizations would consider or are actively considering moving to or expanding their utilization of off-premises cloud solutions. Several respondents are considering moving to the cloud to free up capital investments in on-premises hardware and infrastructure for investment in other key areas. Many also indicate they will move applications or IT infrastructure to the cloud if it lowers the cost of ownership. Despite these potential advantages, 31% of respondents are wary of cloud computing, naming security and privacy vulnerabilities as their top concern. Many explain that they are more confident in their own ability to keep their environment and PHI data secure.
Designer
Jess Wallace-Simpson
Project Manager
Robert Ellis
This material is copyrighted. Any organization gaining unauthorized access to this report will be liable to compensate KLAS for the full retail price. Please see the KLAS DATA USE POLICY for information regarding use of this report. © 2024 KLAS Research, LLC. All Rights Reserved. NOTE: Performance scores may change significantly when including newly interviewed provider organizations, especially when added to a smaller sample size like in emerging markets with a small number of live clients. The findings presented are not meant to be conclusive data for an entire client base.