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1 Occams Business Research & Consultancy Business Research Consultancy v4040/ Publisher Sample Phone: (US) or or (Int'l) Hours: Monday - Thursday: 5:30am - 6:30pm EST Fridays: 5:30am - 5:30pm EST customerservice@marketresearch.com MarketResearch.com
2 CLOUD MARKET IN HEALTHCARE TECHNOLOGIES EHR Market, Digital Pathology Market, Clinical, EMR, SaaS, Bioinformatics, Digital Pathology, Hybrid Market - Global Trends, Challenges, Opportunities & Forecasts
3 About Us: Occams Business Research (Occam s) is a global provider of consulting and information services that combine data refining, expert analysis and application-based client focused reports. We are a team of industry experts and our trademark is; relevant, detailed research reports with unsurpassed synthesis of data points into decision-making tools for the rapidly growing marketplace. These allow users to achieve return on investment in a limited time frame. Our research spans multiple service areas, industry verticals and geographies. We customise reports to meet your unique requirements and also provide consulting services. Try us and you will like to be with us always! We are Different: As our deliverables are deeply researched, consistent, focused and simply stated Redefining business research service approach Comprehensive and well-aligned research methodology Innovative yet competitive and applied strategies 360 degree approach towards analysis of micro and macro factors impacting your markets Collaborative efforts to design your winning strategies Bridging the information gap Analysis of macro and micro economic trends Attractive and user friendly documents Occam s Razor Occam's (or Ockham's) Razor is a principle attributed to the 14th century logician and Franciscan Friar William of Ockham. The principle states that "Entities should not be multiplied unnecessarily." Choose the simplest theory over a complex one to explain a phenomenon as it is going to be the most accurate one. We, at Occams, believe in the Occam s principle and apply the same to our deliverables so that our clients are not lost in multiple and complex analysis. We aim to deliver accurate and relevant analysis in a very simple but comprehensive yet interesting format
4 TABLE OF CONTENTS 1. EXECUTIVE SUMMARY 2. MARKET OVERVIEW 2.1. MARKET DEFINITIONS 2.2. RECENT INNOVATIONS AND CLINICAL TRIALS 2.3. KEY BUYING CRITERIA 2.4. END USER ANALYSIS 2.5. KEY FINDINGS 2.6. STRATEGIC RECOMMENDATION 2.7. REGULATORY SCENARIO FOR HEALTHCARE ENVIRONMENT 3. COMPETITIVE ANALYSIS 3.1. MARKET SHARE ANALYSIS 3.2. KEY MARKET STRATEGY 4. MARKET DETERMINANTS 4.1. MARKET DRIVERS 4.2. MARKET RESTRAINTS 4.3. MARKET OPPORTUNITIES 4.4. MARKET CHALLENGES 5. SECTOR ANALYSIS 5.1. HEALTHCARE INFORMATION SYSTEM- CONVENTIONAL VERSUS CLOUD BASED PLATFORM - 3 -
5 6. MARKET SEGMENTATION 6.1. EHR MARKET EHR VENDORS EHR SOFTWARES EHR SYSTEMS 6.2. DIGITAL PATHOLOGY 6.3. CLINICAL INFORMATION SYSTEM ELECTRONIC MEDICAL RECORDER LABORATORY INFORMATION SYSTEM PHARMACY INFORMATION SYSTEM PICTURE ARCHIVING AND COMMUNICATION SYSTEM 6.4. CLOUD BASED BIOINFORMATICS MARKET 6.5. CLOUD BASED HEALTHCARE APPLICATION MARKET, BY DEPLOYMENT MODEL PUBLIC PRIVATE HYBRID 6.6. CLOUD BASED HEALTHCARE APPLICATION MARKET, BY SERVICE MODEL SAAS PAAS IAAS 7. GEOGRAPHY ANALYSIS 7.1. NORTH AMERICA USA CANADA RONA - 4 -
6 7.2. EUROPE UK FRANCE GERMANY ITALY SPAIN ROE 7.3. ASIA PACIFIC CHINA JAPAN INDIA AUSTRALIA ROAPAC 7.4. LATIN AMERICA BRAZIL MEXICO ARGENTINA ROLA 7.5. ROW 8. CORPORATE PROFILING 8.1 MICROSOFT 8.2 QUALCOMM LIFE 8.3 PHILLIPS 8.4 SALESFORCE INC. 8.5 VERIZON 8.6 AT &T - 5 -
7 8.7 AMAZON WEB SERVICES 8.8 ORACLE 8.9 IBM 8.10 AKAMAI 8.11 GNAX 8.12 VMWARE 8.13 ACCENTURE 8.14 ASIGRA 8.15 CARPATHIA INC 8.16 ATHENAHEALTH INC CARESTREAM HEALTH INC DELL INC HP 8.20 CLEAR DATA NETWORKS INC CARE CLOUD CORPORATION 8.22 MERGE HEALTHCARE INC NETGAIN TECHNOLOGY INC CLOUDERA 8.25 TCS 8.26 NET SUITE 8.27 RACKSPACE 8.28 REDHAT 8.29 CITRIX SYSTEMS - 6 -
8 TABLE LIST TABLE 1 TABLE 2 TABLE 3 TABLE 4 TABLE 5 TABLE 6 TABLE 7 TABLE 8 TABLE 9 TABLE 10 TABLE 11 TABLE 12 TABLE 13 TABLE 14 TABLE 15 TABLE 16 TABLE 17 TABLE 18 TABLE 19 TABLE 20 TABLE 21 TABLE 22 TABLE 23 GLOBAL HEALTH CARE INFORMATION SYSTEM MARKET BY GEOGRAPHY GLOBAL EHR MARKET BY TYPE GLOBAL EHR MARKET BY GEOGRAPHY NORTH AMERICA EHR MARKET ASIA PACIFIC EHR MARKET EUROPE EHR MARKET ROW EHR MARKET GLOBAL DIGITAL PATHOLOGY MARKET BY GEOGRAPHY NORTH AMERICA DIGITAL PATHOLOGY MARKET ASIA PACIFIC DIGITAL PATHOLOGY MARKET EUROPE DIGITAL PATHOLOGY MARKET ROW DIGITAL PATHOLOGY MARKET GLOBAL CLINICAL INFORMATION SYSTEM MARKET BY TYPE GLOBAL CLINICAL INFORMATION SYSTEM MARKET BY TYPE NORTH AMERICA CLINICAL INFORMATION SYSTEM MARKET ASIA PACIFIC CLINICAL INFORMATION SYSTEM MARKET EUROPE CLINICAL INFORMATION SYSTEM MARKET ROW CLINICAL INFORMATION SYSTEM MARKET GLOBAL CLOUD BASED BIOINFORMATICS MARKET BY GEOGRAPHY NORTH AMERICA CLOUD BASED BIOINFORMATICS MARKET ASIA PACIFIC CLOUD BASED BIOINFORMATICS MARKET EUROPE CLOUD BASED BIOINFORMATICS MARKET ROW CLOUD BASED BIOINFORMATICS MARKET - 7 -
9 TABLE 24 TABLE 25 TABLE 26 CLOUD BASED HEALTHCARE APPLICATION MARKET BY DEPLOYMENT MODEL CLOUD BASED HEALTHCARE APPLICATION MARKET BY SERVICE MODEL CLOUD BASED HEALTHCARE APPLICATION MARKET BY GEOGRAPHY - 8 -
10 FIGURES LIST FIGURE 1 FIGURE 2 FIGURE 3 FIGURE 4 FIGURE 5 FIGURE 6 FIGURE 7 FIGURE 8 FIGURE 9 FIGURE 10 FIGURE 11 FIGURE 12 FIGURE 13 FIGURE 14 FIGURE 15 FIGURE 16 GLOBAL HEALTH CARE INFORMATION SYSTEM MARKET BY REVENUE GLOBAL EHR MARKET BY REVENUE GLOBAL DIGITAL PATHOLOGY MARKET BY REVENUE GLOBAL CLINICAL INFORMATION SYSTEM MARKET BY REVENUE GLOBAL CLOUD BASED BIO INFORMATICS MARKET BY REVENUE CLOUD BASED HEALTHCARE APPLICATION MARKET BY DEPLOYMENT MODEL CLOUD BASED HEALTHCARE APPLICATION MARKET BY SERVICE MODEL CLOUD BASED HEALTHCARE APPLICATION MARKET BY GEOGRAPHY GLOBAL EHR MARKET BY TYPE EHR SOFTWARE MARKET BY REVENUE EHR SYSTEMS MARKET BY REVENUE ELECTRONIC MEDICAL RECORDER MARKET BY REVENUE LIBRARY INFORMATION SYSTEM MARKET BY REVENUE PHARMACY INFORMATION SYSTEM MARKET BY REVENUE PICTURE ARCHIVING AND COMMUNICATION SYSTEM MARKET BY REVENUE RADIOLOGY INFORMATION SYSTEM BY REVENUE - 9 -
11 Chap# 1. MARKET OVERVIEW Healthcare sector is one of the most dynamic sectors. Healthcare companies are looking to integrate and adopt IT to achieve greater business agility by increasing adaptability and achieving cost efficiency to enable focus on consumer needs and patient care. As consumers become tech savvy they demand a higher level of interaction such as instant online access to information, products and services through their desktops and mobile devices. However, the traditional IT systems are struggling to meet these challenges and increase system effectiveness. Cloud companies can exploit these opportunities in the healthcare sector. For instance, a recent development is cloud-based medical imaging and information management solutions that enable healthcare professionals to view and interpret patient images such as X-rays, CT scans, and MRI scans simultaneously. This significantly reduces the long-term technology cost and increases the speed of patient care management. FIGURE # 1 GLOBAL HEALTHCARE CLOUD MARKET IN $BILLION ( )
12 FIGURE # 2 GLOBAL CLOUD HEALTHCARE APPLICATION MARKET. BY SERVICE MODELS (%) IN % 27.00% 65.00% Saas Iaas Paas The report segments the global healthcare cloud market by cloud service models. Software as a service dominates the market with highest market share. However, PaaS is the fastest growing segment during the forecasted period ( ). Among the deployment models most of the healthcare organizations are using Private cloud due to security concerns. However, Hybrid cloud will be the supreme choice in the coming years. On the basis of Cloud Applications in Healthcare the market is segmented as Electronic Health Records, Clinical Information System, Digital Pathalogy, and Cloud based Bio Informatics. Currently the market is dominated by cloud based EHR services. However, cloud based Digital Pathalogy is the fastest growing market. FIGURE # 3 GLOBAL CLOUD HEALTHCARE APPLICATION MARKET, BY SERVICE MODELS (%) IN % EHR 20% 45% Digital Pathalogy Clinical Information System 20% Cloud based bioinformatics Market
13 Chap# 2. REGULATORY COMPLIANCES FOR HEALTHCARE CLOUD Cloud computing is being promoted as a potential solution to improve health service delivery, although a number of challenges need to be overcome. However, a key challenge for international governments keen to promote cloud computing in healthcare is to provide an effective legal and regulatory framework which governs trans-border (patient) data flows. Patient data privacy and security is a serious concern for policy-makers. # 2.1. NORTH AMERICA HIPPA Act The Health Insurance Portability and Accountability Act of 1996 ( HIPAA ), as amended by the Health Information Technology for Economic and Clinical Health Act of 2009 ( HITECH ), protects individually identifiable health information, which the rule calls protected health information, or PHI. Entities that are obligated to comply with HIPAA are often particularly concerned with the obligation to report HIPAA breaches and the associated potential harm to their reputations. These reporting obligations create powerful incentives for organizations to implement systems and processes to reduce risk. Health Information Technology for Economic and Clinical Health (HITECH) Act The Health Information Technology for Economic and Clinical Health (HITECH) Act, enacted as part of the American Recovery and Reinvestment Act of 2009, was signed into law in February It promotes the adoption and meaningful use of health information technology. The HITECH Act addresses the privacy and security concerns associated with the electronic transmission of health information, partly through several provisions that strengthen the civil and criminal enforcement of the HIPAA rules. The act stipulates that, as of 2011, healthcare providers will be offered financial incentives for demonstrating meaningful use of electronic health records (EHRs). Incentives will be offered until After that point, penalties may be charged for failing to demonstrate such use. The act also established grants for training centers for the personnel required to support a health IT infrastructure
14 # 2.2. EUROPE The European Union has the Data Protection Directive (95/46). This regulates the processing of personal data across 28 Member States. It is an important part of EU privacy and human rights law (European Commission, 2013). Data protection is enshrined in the Treaty on the functioning of the EU where personal data protection is the right of all citizens. The Directive was adopted to harmonize national provisions on the protection of individuals in the processing and free movement of personal data. In 2010, a communication adopted by the European Commission discussed the new challenges for personal data protection in the context of cross-border data flows. In 2012, a draft European General Data Protection Regulation was unveiled to supersede the Data Protection Directive. The comprehensive revision of the Directive was launched to address key aspects of processing personal health data, to ensure privacy for patients, and to enable the EU to meet the other legitimate objectives in the Treaties, including more robust health data protection. # AUSTRALIA Base Law Description Data Privacy Data Security Cyber Crime Intellectual Property Right The Privacy Act 1988 The Federal Electronic Transactions Act 1999 The Cybercrime Act 2001 Copyright Act 1968 The Privacy Act 1988 (Cth) requires private-sector organizations to comply either with the Australian Privacy Principles or an industry code formally approved by the regulator in their collection, use, disclosure, and handling of an individual s personal information. The legislation was heavily amended in 2012, resulting in increased penalties and a wider range of powers for the regulator. The federal Electronic Transactions Act 1999 (Cth) recognizes and enforces electronic signatures. Similar laws are in place at the state level. These laws are being amended to align the electronic signature requirements with the UN Convention on the Use of Electronic Communications in International Contracts 2005, a process that is nearly complete The Cybercrime Act 2001 (Cth) commenced on April 1, It made a range of amendments to the Criminal Code in order to update the list of computer offenses. These offenses are comprehensive The right is set out in Section 31 of the Copyright Act 1968 (Cth) and the infringement is set out in Section
15 Base Law Description Industry Standards Support UNCITRAL Model Law on E-Commerce Australian law is based on the Model Law on E-Commerce but the government plans to sign the UN Convention on Electronic Contracting and is in the process of amending laws to align with the Convention text. This task is almost complete with only one state jurisdiction s laws requiring amendment
16 Chap# 3. MARKET DETERMINANTS # 3.1. MARKET DRIVERS There has been a surge of interest of the healthcare companies in adoption of cloud computing. Companies are leveraging cloud providers for its various benefits such as providing business agility, reducing cost, and so on. The major drivers are- # 3.2. CLOUD COMPUTING A PARADIGM SHIFT IN HEALTHCARE IT Cloud Computing enables the Healthcare IT to focus less on the management of physical assets and more on delivering better services to patients, physicians, ambulatory care providers, and public health organizations. It provides ability to scale application workloads, share information across the departments, and ensure the security and availability of the patient information as and when needed. Cloud also enables the development of effective administrative systems in the hospitals with efficient clinical workflows by automating the process and consolidating the available IT resources. Moreover, cloud enable the better management of IT budgets of the hospitals thereby allowing them to focus more on core investment area. # BUSINESS AGILITY IN HEALTHCARE SEGMENT The ability of an organization to adapt rapidly and economically to the changes in its environment is known as business agility. Healthcare services have now become more data driven and are required to maintain huge data for which increased IT services and infrastructure are needed. There is a constant increase in adoption of electronic medical records (EMR), electronic health records (EHR), personal health records (PHR) and technologies related to integrated care, patient safety and clinical records as they are cost effective, manageable, require less in house IT infrastructure and lead to delivering quality healthcare services Cloud computing allows organizations to adapt this business model quickly and cost effectively and connect and share information more flexibly across the value chain. Many pharmaceutical companies are using cloud services to improve research and drug development. For instance Accenture announced the launch of Accenture Life Sciences cloud for R&D which is a part of Accenture Accelerated R&D Services that focuses on building more efficient and effective R&D models. Along with this, Accenture has formed a Life Sciences Cloud Coalition with Eisai, Merck and Pfizer to come together and determine the future developments and evolution of the platform. Leading companies like Lily launched a 64 computer system cluster to work on bioinformatic sequence information. Using cloud computing service the firm executed the project in 20 minutes at the cost of $6.40. Had they
17 done the same project internally, they would have to install and qualify 64 machine cluster and run it for 12 weeks. Also hospitals and physicians are using cloud services to store medical data and share data in various geographies. # SHIFT OF HEALTHCARE FROM CLINIC TO HOME Cloud computing has introduced new prospects for hospitals to provide better care at lower costs to the patients through online consultations and virtual visits. This proves to be a cost effective and less time consuming method for patients as well as physicians. In the future it is expected that through cloud solutions, healthcare providers can place diagnostic devices in patient s home which are linked to the cloud platforms and could be monitored continually with applications such as online videos and medical assistance by doctors and healthcare professionals through virtual visits # 3.3. CASE STUDY Fairview Health Services, a Minneapolis based company running 10 hospitals and 48 clinics, has a cloud based communications platform that enables its physicians to have virtual video visits with patients and also schedule follow up visits. It also provides online consultations for patients who are unable to visit the clinic. This reduces the need for physicians and patients to travel and conduct face to face consultations reducing administrative and property costs thus providing better healthcare at lower costs. The system is secured with encrypted communications and in compliance with the HIPAA. # NEED FOR HEALTHCARE ORGANIZATIONS TO STORE BIG DATA The need for healthcare organizations to store huge medical data at low operating costs serves as a major driver for cloud computing industry. Cloud services are very reasonable and also allow organizations to centrally manage patient data. For researchers and scientists, cloud computing turns out to be the most feasible storage options as the genome or drug modeling data sets are very bulky and expensive to store and this makes sharing of such data extremely difficult for researchers. Due to nanoscale and microfluidic technologies, DNA can be monitored by photographic sensors that could generate images upto 800 gigabytes in size. DNA sequencing and gene profiling generate massive amounts of data very rapidly. Cloud computing enables consolidation and simple sharing of the data within individual organizations or multi firm projects. Hospitals also need to store huge amount of data for which cloud services are used and many big hospitals are now considering cloud services as they are convenient and cost effective. Typically EHR data ranges from 1MB for a healthy person and 40MB for a middle aged person with some
18 health issues(excluding images).this data could go upto 3-5 GB (including images) for a person with many health issues. # GOVERNMENT INCENTIVES TO RAISE ADOPTION OF NEW TECHNOLOGIES Government funding acts as a major driver for adoption of cloud computing in healthcare industry. In many developed countries the governments are promoting EHR and EMR in hospitals to encourage better care and facilities for patients and physicians both. Government funds are a huge support to hospitals struggling to implement EMR projects due to shortage of funds. The Federal Government has introduced a Meaningful Use program as per the 2009 HITECH Act (Health Information Technology for Economic and Clinical Health) which provides monetary incentives based on the adoption, implementation rate and security of EHRs. CMS (Centers for Medicare and Medicaid Services) grants payments to Eligible Professionals (EPs) and Eligible Hospitals (EHs) that intend to work towards adopting and implementing certified EHR technology. These payments range from $44,000 over 5 years for Medicare providers and $63,750 over 6 years for Medicaide providers (Starting in 2011). Although the program is totally voluntary, if the EPs or EHs fail to join in by 2015 there will be negative adjustments to their Medicare/Medicaide fees starting at 1%reduction to 3% reduction by 2017 and beyond. The Australian government has also granted a sum of $450 million for implementation of national EHR programs. # HEALTH CARE IT INVESTMENTS ARE SOARING - Investors worldwide are showing keen interest in Healthcare IT. Moreover, the various technological innovations in healthcare have a huge potential to drive the growth of Healthcare IT. For instance, Xerox s unprecedented investment in telemedicine company Health Spot, which plans to install its kiosks not just at medical facilities but also at big companies; and pharmaceutical giant Novartis AG s growing interest in wearable technologies that can track the effectiveness of its drugs
19 FIGURE # 4 HOSPITALS IT INVESTMENT PRIORITY RATINGS(0-5 SCALE) IN 2013 Real-time location systems Mobile health technologies Laboratory systems Health information exchanges Telehealth Pharmacy systems Clinical decision support Emergency depart. Information system E- prescribing systems Digital Imaging Personal Health Records EHR
20 Chap# 4. SAMPLE MARKET ESTIMATIONS TABLE - TABLE # 1 Deployment Model Public Private Hybrid Total CLOUD BASED HEALTHCARE APPLICATION MARKET BY DEPLOYMENT MODEL IN $BILLION ( ) CAGR% ( ) TABLE # 2 CLOUD BASED HEALTHCARE APPLICATION MARKET BY DEPLOYMENT MODEL IN $BILLION ( ) Service Model CAGR% ( ) SaaS PaaS IaaS Total
21 TABLE # 3 CLOUD HEALTHCARE MARKET BY APPLICATIONS IN $BILLION ( ) Applications CAGR% ( ) EHR Digital Pathalogy Clinical Information System Cloud based bioinformatics Market TABLE # 4 CLOUD HEALTHCARE MARKET BY GEOGRAPHY IN $BILLION ( ) Geography CAGR% ( ) North America Latin America Asia Pacific Europe ROW Total
22 TABLE # 5 NORTH AMERICA CLOUD HEALTHCARE MARKET BY REGION IN $BILLION ( ) Region CAGR% ( ) U.S. Canada RoNA Total TABLE # 6 LATIN AMERICA CLOUD HEALTHCARE MARKET BY REGION IN $BILLION ( ) Region CAGR% ( ) Brazil Mexico Argentina RoLA Total
23 TABLE # 7 ASIA PACIFIC CLOUD HEALTHCARE MARKET BY REGION IN $BILLION ( ) Region CAGR% ( ) India China Japan Australia ASEAN Total TABLE # 8 TABLE: EUROPE CLOUD HEALTHCARE MARKET BY REGION IN $BILLION ( ) Region CAGR% ( ) UK France Germany Italy Spain RoE Total
24 TABLE # 9 ROW CLOUD HEALTHCARE MARKET BY REGION IN $BILLION ( ) Region CAGR% ( ) Middle East North Africa Others Total
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