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The cloud market in the healthcare industry is projected to expand at a CAGR of 21.30% during the period between 2012 and 2018

The competitive landscape of the global cloud computing market in the healthcare industry is crowded due to the presence of a large number of players. The large number of participants has led to the fragmented nature of the market. Some of the major players operating in the global cloud computing market in the healthcare industry are Cisco Systems Inc., Carestream Health Inc., Carecloud Corp., AGFA Healthcare, IBM Corp., Cleardata Networks, Merge Healthcare Inc., Microsoft Corp., Intel Corp., and Oracle Corp.

"The high level of customization required by various healthcare organizations has resulted in the emergence of a large number of market players with unique expertise," a TMR analyst points out. This level of customized services prevents any form of standardization across the market.

Concerns About Data Leakage Is a Major Challenge for Market Players
Rapid transformations in the healthcare IT sector, coupled with the growing demand for security of access and data integrity, have supported the growth of cloud computing in the healthcare industry. "An increasing number of companies are reducing investments in the creation and maintenance of a physical IT infrastructure and are shifting towards cloud computing for easier management of profiles," states TMR.

However, data relocation from established systems is a major hiccup in the market's growth during the forecast horizon. Data integration and consistency is also another challenge faced by the market players. The growing concerns pertaining to data leakage have made a number of healthcare providers apprehensive about the adoption of the cloud computing technology. The market players are focusing on the introduction of wireless technologies in cloud computing solutions to allow remote access of data on a real-time basis. The increasing usage of ACOS for data sharing through mobile devices has created ample opportunities for the growth of the market players.

PaaS Is Largely Preferred by the Healthcare Industry
Among the major service models, the Platform-as-a-Service (PaaS) model is expected to register the highest demand. "Simple application and high rate of deployment are the primary factors driving the demand for the PaaS model," states TMR. The PaaS model does not rely on hardware and software and offers support within the service's lifecycle. Though the market was dominated by the IaaS model in 2011, PaaS is anticipated to generate more revenue in the years to come.

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The global cloud computing market in the healthcare industry is projected to expand robustly at a CAGR of 21.30% during the period between 2012 and 2018. The market was valued at US$1.82 bn in 2011 and is anticipated to be worth US$6.79 bn by 2018.

More Stories By Ram Sonagara

Ram Sonagara works at Transparency Market Research. TMR is a market intelligence company providing global business research reports and consulting services.

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