How the Healthcare Cloud Out Performs On-Premise Solutions

6 min read

How the Healthcare Cloud Out Performs On-Premise Solutions

Change is hard, even when we know the potential for something better exists. It's what makes big shifts complicated and time-consuming. And yet, much like the task we put off for days or weeks only to have it take a fraction of the time we expect, big changes often come with big payoffs.

Still, taking a leap, especially when it comes to the backbone of your healthcare practice, and let's face it, these days your software, network, and patient data are the backbone, change is scary. That's why it's important to understand how on-premise solutions for healthcare may be limiting your practice's potential. The healthcare cloud can help your team allocate its resources on tasks that drive practice growth and patient care rather than managing tech.

Quick Links:

• Why Practices Use On-Premise Solutions
• How On-Premise Solutions are Different from the Healthcare Cloud
• The True Cost of On-Premise Healthcare Solutions
• How the Healthcare Cloud Can Save Practice Resources

Why Practices Use On-Premise Solutions

For many healthcare practices, an on-premise solution probably feels like part of the team. Not only is there a historical reliance, but there's also the perception of greater control and concerns regarding compliance.

For many, the shift to cloud-based solutions represents a significant overhaul of their IT infrastructure, which can feel daunting, particularly for small to mid-sized practices operating with limited resources. On-premise solutions, by contrast, seem familiar and straightforward; at the very least, they allow practices to maintain the status quo.

Let's address some of the factors that keep healthcare practices committed to on-premise solutions.

Legacy Investments

Let's start with finances. It's hard for any business to, seemingly, abandon capital investments like costly computer equipment. Because many healthcare practices have made significant investments in their on-premise hardware and software, it creates an understandable financial barrier to transitioning to the cloud.

Practice owners and managers clearly feel the need to maximize the return on these investments before considering alternative solutions. This is particularly true for smaller practices, which may have tighter budgets and less flexibility to adopt newer technologies. Additionally, some legacy systems are deeply integrated into existing healthcare workflows, making migration seem complex and potentially disruptive.

Control and Data Ownership

One of the most common reasons practices opt for on-premise systems is the perception of greater control over their patient data and infrastructure. For many systems administrators, keeping servers and networks in-house means they can manage data access, security configurations, and system uptime more directly. This sense of ownership is particularly appealing in healthcare, where protecting patient data is a top priority. Many decision-makers feel more secure knowing sensitive information is stored within their physical walls rather than in a remote data center.

Connectivity Concerns

For practices in areas with unreliable internet connectivity, on-premise systems may seem like the safer choice. Cloud-based solutions rely heavily on stable internet access, and decision-makers worry about the potential for downtime during outages. On-premise systems, by contrast, can continue to function independently of external network issues, providing a level of assurance for uninterrupted operations.

Compliance and Security Fears

From HIPAA regulations to ongoing healthcare cybersecurity threats, healthcare practices must implement robust safeguards for patient data. Some decision-makers believe keeping their systems on-premise gives them greater ability to comply with these standards, particularly if they misunderstand how cloud providers manage security and compliance. The notion that cloud solutions might expose data to additional risks, such as breaches during transmission or third-party access, can further reinforce a preference for on-premise systems.

Resistance to Change

Finally, resistance to change plays a significant role. IT teams and administrators accustomed to maintaining on-premise solutions may hesitate to adopt cloud technologies that require new skills, training, or operational approaches. In many cases, practices prioritize consistency and ease of use over innovation, especially if they believe their existing systems adequately meet their needs.

How On-Premise Solutions are Different from the Healthcare Cloud

When comparing on-premise solutions to cloud-based healthcare systems, the key differences lie in infrastructure, accessibility, scalability, maintenance, and cost structure. Understanding these distinctions is essential for practice managers or other IT decision-makers when evaluating the best approach for their operations.

Infrastructure and Deployment

On-premise solutions rely on physical servers and hardware housed within the practice's facilities. These systems require significant upfront investments in equipment, which often entrenches them in a practice. However, they also require dedicated space and resources to maintain them.

In contrast, healthcare cloud solutions are hosted on off-site servers managed by a third-party provider, eliminating the need for physical infrastructure within the practice. This shifts the burden of hardware upgrades, maintenance, and security from the practice to the cloud provider, freeing up internal resources and physical space.

Accessibility and Mobility

One of the most significant advantages of cloud-based solutions is their accessibility. With data stored in the cloud, authorized users can access systems and patient information securely from anywhere with an internet connection. This enables greater flexibility for remote work, telehealth, and multi-location practices.

On-premise solutions, in contrast, are tethered to the physical location of the servers, often requiring users to be on-site or to set up complex and less secure remote access systems to work off-premise.

Scalability and Flexibility

On-premise systems are limited by the capacity of existing hardware and often require costly upgrades or expansions to meet increased demand. This lack of flexibility can be a significant drawback for practices aiming to grow or adapt quickly to changing needs.

Cloud solutions, on the other hand, offer unparalleled scalability compared to on-premise systems. Practices can easily adjust their usage to accommodate growth, new locations, or fluctuating demand, with minimal effort or additional capital investment.

Maintenance and Updates

With on-premise solutions, the responsibility for maintaining, patching and updating software, hardware, and security protocols falls squarely on the practice's IT team. This often requires significant time, expertise, and financial investment.

In contrast, cloud providers handle healthcare security needs including updates, maintenance, and security enhancements as part of their service offering. This ensures practices always have access to the latest technology without having to manage or schedule upgrades themselves.

Cost Structure

On-premise solutions typically require large upfront expenditures for hardware, licensing, and installation, along with ongoing maintenance and IT staff costs. In contrast, cloud solutions operate on a subscription-based model, spreading costs over time and allowing practices to pay for only what they use. This predictable cost structure makes budgeting easier and reduces the financial barrier to entry, especially for smaller practices or those looking to minimize capital expenditures.

Understanding these differences allows practice managers and IT leaders to better assess whether their current systems meet their operational and strategic needs or if a shift to the healthcare cloud would better position their practice for future success.

The True Cost of On-Premise Healthcare Solutions

While on-premise healthcare solutions may seem like a straightforward choice, their true cost goes far beyond the initial hardware and software investment. For smaller practices, the financial, time, and resource drain of maintaining an on-premise infrastructure can be significant, particularly when they lack a dedicated IT team. These hidden costs can hinder operations, reduce efficiency, and ultimately impact patient care.

Financial Burden

As mentioned, on-premise solutions require a substantial upfront investment in servers, hardware, and software licenses. In addition to the initial purchase, practices must budget for ongoing costs such as power consumption, physical storage space, and cooling systems to keep the servers operational.

And, as hardware ages, it must be replaced or upgraded-expenses can quickly add up. For smaller practices with tighter budgets, these capital expenditures can strain financial resources and divert funds from patient-facing initiatives or growth opportunities.

Time and Effort for Maintenance

Without a dedicated IT team, the responsibility for maintaining on-premise systems often falls to office managers or staff who are already juggling multiple roles. Tasks such as installing software updates, troubleshooting issues, and ensuring secure backups can be time-consuming and disruptive. In the event of a hardware failure or security breach, these demands intensify, pulling resources away from core operations and patient care. Practices may also need to hire outside consultants or IT vendors for specialized support, further increasing costs and complicating workflows.

Security and Compliance Challenges

Ensuring data security and compliance with healthcare regulations like HIPAA is a critical requirement for any practice. For on-premise solutions, this means implementing and managing robust security protocols, including firewalls, antivirus software, and encryption. Smaller practices often lack the expertise and resources to stay ahead of evolving cybersecurity threats, leaving their systems-and patient data-vulnerable. Additionally, audits and compliance checks can be time-intensive and stressful without automated tools to streamline the process.

Limited Scalability and Agility

On-premise systems are inherently rigid. As a practice grows or patient volumes increase, scaling on-premise infrastructure requires additional hardware purchases and installations, which take time and incur significant costs. For smaller practices, this lack of scalability can stifle growth, making it difficult to expand services or adapt to new opportunities. The inability to respond quickly to changing demands can result in lost revenue and decreased patient satisfaction.

The Opportunity Cost of Inefficiency

Every moment and dollar spent on managing on-premise solutions is time and money not invested in improving patient care, staff training, or operational growth. The inefficiencies of on-premise systems can lead to slower workflows, delayed access to information, and frustrated staff. For smaller practices, where every resource is stretched thin, this opportunity cost can have a ripple effect, impacting both patient outcomes and the overall success of the practice.

How the Healthcare Cloud Can Save Practice Resources

The healthcare cloud offers a transformative way for practices to save resources and operate more efficiently. By eliminating the need for costly on-premise servers and IT infrastructure, practices reduce overhead expenses while also streamlining operations. Offloading routine maintenance tasks, software updates, and security management to the cloud provider, frees up staff to focus on patient care and practice growth.

Cloud-based systems also enhance agility and scalability, allowing practices to adapt quickly to changing needs. Whether expanding to new locations, adding providers, or increasing patient volume, cloud platforms enable seamless scaling without the delays or costs associated with upgrading physical infrastructure.

Additionally, modern cloud solutions are designed with advanced security measures, including data encryption, regular security updates, and compliance support for regulations like HIPAA. This robust protection ensures patient data remains secure while alleviating the administrative burden of managing compliance in-house. Together, these benefits make the healthcare cloud an invaluable resource for practices looking to maximize efficiency and support long-term growth.

Ready to experience how healthcare cloud solutions can transform your practice? iCoreConnect offers a full platform of cloud-based software solutions to boost efficiency, improve scalability and agility, while providing a solid security stance to keep your practice compliant and patient data safe. Book a demo today and let's give you your resources back!