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Software as a Service: Employing Cloud Technology in Healthcare IT

Written By: Kelly Buckman

Unless you’ve been living in a cave for the past decade, chances are that you’ve heard of the “Cloud” and may even understand the value of Cloud technology for storing large amounts of data for businesses and other types of organizations. What you may not know is how healthcare is benefiting from advances in cloud technology, and in particular, software as a service.

A common delivery model for many business applications, Software as a service, also known as SaaS, is a software licensing and delivery model in which software is licensed on a subscription basis and is centrally hosted.* Typically accessed using a thin client via a web browser, some common examples of SaaS include Office 365, Google Apps, Citrix GoToMeeting, Cisco WebEx, and Netflix.

With SaaS, vendors develop, monitor and maintain the application. Data is stored off-site and users access software over the internet. And since SaaS vendors develop and troubleshoot any issues that may arise with the product, there’s no need to hire on-site developers or support staff.

What’s more, most SaaS-based tools have a monthly subscription fee based on resources being used. **

Given that the organization does not have to invest in staff or hardware, it’s no surprise that Healthcare Software-as-a-Service applications are gaining in popularity among organizations as a HIPAA compliant, convenient, and affordable means of deploying cloud-based electronic health records (EHRs).

In addition, the Office of the National Coordinator for Health Information Technology (ONC) supports SaaS as a means of better data exchange because data from many different organizations can be stored and processed in a more uniform way, which in turn can help with exchange of information across platforms. ***

For all the benefits offered by Software as a Service, as with much new technology, there are some drawbacks that healthcare organizations should consider before deciding to go all in with SaaS:


With cloud-based technology, the data is no longer completely under the organization’s control. If an outage does occur, there’s nothing the IT department can do to bring applications back online. Rather, they’re forced to rely on the vendor, who may have many clients vying for their attention, to resolve.

Although cloud service providers typically have contingency plans in place for a major outage, if one occurs, it can be disastrous.

Since cloud-hosted applications depend on network connectivity, providers may lose access to applications if there is a network outage or dead zone onsite.

With SaaS, security protocols are in the hands of the cloud service provider, which limits the control organizations have over PHI stored in apps. Hosting multiple users on the same server can make data vulnerable to hackers. This risk can be mitigated by ensuring that the vendor uses the latest security measures to keep data secure. ****

Although many offer flexible packages, switching cloud service vendors can be tricky due to the fact that hosting a cloud application on another server can pose support and operability issues (i.e., apps developed on Microsoft may not function properly on Linux). It’s therefore advisable to develop a plan beforehand for migrating data.

In terms of performance, on-premise software is preferable, as it can be faster than SaaS software that is hosted on the provider’s datacenter and accessed over the internet. Having a fast and reliable internet connection can help, as can performance management products that monitor how applications are running.

Lastly, integrating multiple SaaS solutions can be challenging, as can mixing cloud apps with on-premise solutions. Integration-Platform-as-a-Service (IPaaS), such as Informatica, CloudSwitch, and Boomi can help with this. *****

Clearly, businesses have experienced widespread success using Software as a Service in recent years. However, the healthcare industry has an added layer of complexity in the form of HIPAA requirements, which become increasingly difficult to adhere to as files become more accessible. According to the Cloud Standards Customer Council, “increased privacy and security rules have created obstacles to utilizing cloud computing as part of information technology.” However, this does not by any means make SaaS or other cloud computing services out of reach. For guidelines on meeting patient privacy and security requirements under a cloud-based environment and for determining the appropriate cloud deployment model, refer to Cloud Standards Customer Council document, “Impact of Cloud Computing on Healthcare Version 2.0”. ******

There are in fact several options available to healthcare providers looking to take advantage of the benefits that cloud technology has to offer. In addition to Software as a Service, there is also Platform as a Service (PaaS), which functions at a lower level than SaaS, and provides a platform on which software can be developed and deployed. With PaaS, the vendor provides and maintains the environment in which the operating system and server software, as well as the underlying server hardware and network infrastructure sit. This frees organizations to focus on scalability and application development.

The most flexible cloud computing model, Infrastructure as a Service (IaaS) allows for automated deployment of servers, processing power, storage, and networking. Using IaaS, organizations can outsource and build a “virtual data center” in the cloud, gaining access to the technologies and resource capabilities of a traditional data center without worrying about capacity planning or physical maintenance and management. *******

With all the options available today, it’s perhaps more important than ever for organizations to consider their specific infrastructure needs when deciding which applications would better serve users if they were deployed in the cloud and which should remain on premise.

A report from ClearSky Data suggests that utilizing both cloud and on-premise hosted applications gives entities the flexibility of the cloud while maintaining the control and security of an on-premises deployment. This allows for organizations to move low-end or smaller workloads and applications to build up confidence before migrating more sensitive or robust workloads. ********


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Kelly Buckman is a healthcare IT expert and field expert blogger for Barracuda Consulting.

Kelly has almost a decade of experience as a Technical Support Engineer/ Analyst in the field of Healthcare IT, over 20 years in IT Support, and several years of experience in Project Management. She has a B.A. from Mount Holyoke, Masters degree from UMass Amherst, and lists her skills as the ability to analyze and resolve various types of application, server and network issues, and to communicate complex ideas effectively.

She is also the mother of 3 sons, ages 19, 17, and 11, lives in western Massachusetts, and enjoys solving puzzles, reading, and travelling.

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