Nutanix Study Indicates Hybrid Cloud to Dominate the Future of Healthcare

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Nutanix has announced the findings of its third annual Enterprise Cloud Index Report, measuring healthcare organisations’ plans for adopting private, hybrid and public clouds. The findings indicate a growing trend within the sector: with more than two-thirds (70%) of respondents reporting that COVID-19 has caused IT to be viewed more strategically within their organisations and the pandemic has accelerated digital transformation that is likely to shape the future of healthcare.

As COVID-19 hit, healthcare organisations looked for ways to effectively support the skyrocketing technology demands of the COVID-19 pandemicーfrom enabling remote work, to implementing telehealth practices, to supporting an increasing patient load. As a result, they sought out IT solutions that could support their organisations’ growing needs and support their digital transformation. With digital transformation top of mind, the healthcare industry is more bullish than any other sector about adopting a hybrid IT model, with 95% of respondents agreeing that hybrid is their ideal choice.

Aaron White, Nutanix
Aaron White, Nutanix

Today, more than half of healthcare respondents have increased their public cloud (56%) and hybrid cloud (51%) use and nearly half (46%) have invested more in private cloud environments in an effort to quickly provide new work-from-home employees with access to IT resources. While 77% of healthcare respondents previously had some employees working remotely one year ago, that percentage has increased to 93% this year since the onset of the pandemic.

Other key findings of this year’s report include:

  • The future of healthcare is dependent on decommissioning of legacy architecture: Currently, more healthcare companies run exclusively traditional, non-cloud-enabled datacenters (27%) than any other industry, compared to 18% globally. Over the next five years, however, healthcare organisations plan to shrink that gap with an expected 21-percentage-point drop in legacy data centre installations and a corresponding 32-point increase in hybrid cloud deployments.
  • Healthcare organisations look to hyperconverged infrastructure to support IT modernisation and pave the way to hybrid cloud: Hyperconverged infrastructure is often seen as the basis for a hybrid cloud infrastructure, the HCI of the next decade, as it helps accelerate cloud adoption by sharply reducing the time it takes to build the software-defined infrastructure necessary to support private cloud, while also providing the scalability of cloud technology. About 64% of healthcare respondents say they’ve either fully deployed HCI or are in the process of doing so, significantly outpacing the approximately 50% of global respondents who are using or deploying hyperconverged infrastructure.
  • Security, privacy and compliance pose a significant challenge to the industry’s digital transformation: 58% of healthcare respondents described security as a significant challenge, compared to 51% of global respondents. Healthcare respondents also ranked cost control (45%) and business continuity (45%) more often as significant challenges than any other industry.
  • As the healthcare industry evolves, cost advantages will be the main gating factor for IT infrastructure deployments: All industries, including healthcare, indicated that security, privacy, and compliance solution strengths were highly important to infrastructure decision-making.

“The healthcare sector has clearly charted a path toward technology transformation, specifically a hybrid cloud consumption model that will enable HIT teams to provide security, ensure regulatory compliance, and enable healthcare providers to deliver care. The future of healthcare requires embracing technology—including cloud technologies—to secure, organise, and protect patient data,” concludes Aaron White, Sr. Sales Director, METI at Nutanix.

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