ROI Considerations When Moving to the Cloud

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Introduction

Healthcare has been slow to adopt cloud-based technology. Yet, industry trends point to greater adoption as hospitals grapple with infrastructure and staffing costs.  Vendors continue to offer new hosted solutions that provide better scalability, data security, and enterprise access.  As IT organizations look for ways to control escalating costs while refreshing outdated technology, the cloud has become an avenue to improve many organizational leaders’ top pain points, but there are ROI considerations when moving to the cloud that should be factored into your decision making. In terms of continued adoption, the global growth rate for cloud spending is expected to increase 32.7% over 2023 spending alone, according to Statista. 

The challenge of moving to the cloud, and an early misconception, was the potential increase in costs.  Unlike on-premises solutions, you move from software “ownership” to software “usage”, and some solutions are completely managed by the vendor.   Making this change, organizations have struggled to show the ROI improvements when investing in cloud solutions.     

Whether you are looking to move to the cloud for increased scalability, data safety and security improvements, disaster recovery, cost savings, speed, enhanced clinical collaboration, or reducing your on-premises infrastructure, we will explore a few of the misconceptions surrounding cloud ROIs. 

ROI Consideration #1: The gap between “what was sold” vs. “reality”.

PwC noted in their 2023 Cloud Business Survey that more than half of respondents indicated they did not meet the ROI they expected.  The biggest reason companies fall short on expected cloud benefits is how they measure their ROI.  Not factoring in all aspects of your cloud transition can cause unexpected costs to crush your initial projections.  Higher storage costs when using the public cloud, for example, is one area many organizations do not adequately plan for. 

InsiteOne Tip

As the first true cloud vendor neutral archive (VNA), InsiteOne understands the challenges and costs when moving your infrastructure to the cloud.  We explain the costs and benefits you would experience when making the transition to the cloud.  Things like server infrastructure costs, the physical space of your data center, on-going maintenance and support, software licensing, staffing, energy bills, and even productivity gains, are all things that need to be captured when evaluating the ROI of moving to the cloud.

ROI Consideration #2: Comparing cloud vs. on premises infrastructure costs alone isn’t enough.

Moving to the cloud will alleviate your on-premises infrastructure costs but other important factors must be considered as well.  Operational performance, increased business ability, and lower environmental costs, are just a few to consider.  Also, do not forget to factor in direct and indirect benefits when building your ROI Performa to gain a more accurate ROI.

InsiteOne Tip

Understand your current on-going costs in maintaining your on-premises infrastructure. Consider the obvious and not so obvious cost factors in your analysis when building your ROI.  Once you understand true current costs, you will be able to evaluate the impact moving to the cloud will have on your organization.  Simply comparing the CAPEX vs. OPEX costs, will not provide you with an accurate representation of the true ROI you could realize moving to the cloud.

ROI Consideration #3: Understand one-time vs. on-going costs.

Shifting from on-premises infrastructure to the cloud will incur upfront and on-going costs.  Evaluating an ROI over a short time period will not produce stellar results due to upfront costs.  Even with CAPEX purchases, upfront costs exist and may be higher than expected.   Upfront costs even out the longer your timeframe is when evaluating your ROI. Upfront costs aside, a cloud infrastructure offers immediate benefits plus significant value over time.

InsiteOne Tip

One-time costs you may have when moving to the cloud include, data migration (generally the biggest cost, especially with medical imaging data), implementation and consulting fees, 3rd party integrations, and user training.  On-going costs include monthly subscription fees, labor, and routine maintenance.  As you move your infrastructure to the cloud, look for new areas of cost consolidation, labor reallocation, and new opportunities to improve processes/workflows, or evaluate new revenue opportunities achievable by offering new services.  Switching to the cloud provides your organization an opportunity to evaluate your infrastructure and service delivery model and make changes that provide better scale and flexibility. Over the long-term, cloud technology can be more cost effective than on-premises infrastructures.

ROI Consideration #4: Factor in the intangible benefits you gain when moving to the cloud.

Infrastructure costs are easy to calculate when determining an ROI.  But what about the intangible benefits?  Realistically, intangible benefits will be different for every organization because not every organization will move to the cloud for the same reasons.  There are some common intangible benefits, like added security, reduced costs, improved collaboration, speed to market, infinite scalability, easier upgrades, shifting from CAPEX to OPEX, and better long-term flexibility that all add value when moving to the cloud.

InsiteOne Tip

Increasing clinical collaboration is one of the most important intangible benefits when moving healthcare to the cloud.  Improving data access and providing better tools fosters cross-team collaboration that can have a direct impact on patient outcomes.  Although this is a tough benefit to place a value on, it does exist and must be considered.  Additionally, adding new revenue streams, like data monetization strategies, become more realistic, easier to market and access when cloud technology is used.  Finally, reallocating staff to more important projects, and reducing overall operational spending are additional benefits that can be tough to calculate, but do not forget to consider their overall impact.

ROI Consideration #5: Reinventing your business model via the could offers the highest ROI

Shifting some of your applications to the cloud alone does not offer the highest ROI. Powering your organization with cloud technology provides the greatest ROI gains.  According to PwC, businesses that move their operations to the cloud are four times more likely to see value in areas where those that only partially moved to the cloud would see. 

InsiteOne Tip

Companies that experience higher value in their cloud transition have the four following things in common: 1) a holistic and unwavering approach to the cloud 2) C-Suite collaboration and early buy-in 3) a formalized data, AI, and analytics strategy and 4) a focus approach on trust and controls. Identifying potential risks early and through all stages of your cloud transition allows your organization to invest in the right resources to mitigate risks that may arise along the way.      

Conclusion

As more healthcare organizations move their business operations to the cloud, proof exists that cloud technology provides distinct advantages over on-premises infrastructures.  Although risks exist, the rewards are there to be gained when the right strategy is in place.  The cloud offers opportunities for organizations to re-think their business models of the future and investing in cloud technology can offer better workflows, lower long-term costs, and infinite on-demand scalability.  Developing a “cloud mindset” must start at the top and a detailed analysis is required to understand 1) how your organization will compete and deliver services in the future 2) what services can be reinvented using cloud technology, and 3) where operations can be streamlined to reduce costs and eliminate bottlenecks.

Although many factors need to be analyzed when making the cloud transition, understanding every aspect of your current infrastructure helps you properly prepare a ROI analysis.  InsiteOne has been helping our clients realize the value that the cloud can bring to their organization for decades.  Our experience and guidance can help you uncover areas where the cloud can further improve your ROI.  All our solutions are delivered as a cloud hosted managed service so your organization can better control long-term costs while maximizing the value the technology we offer provides.   

Learn more about how InsiteOne can help you with cloud adoption (image archiving, operational RIS/PACS, or cloud-hosted disaster recovery RIS/PACS). Reach out to us today to start a conversation to explore how moving to the cloud can provide your organization with many long-term benefits.

Five DR Strategies Your Organization Needs Today

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Introduction

You never know when a disaster will strike.  Living near the coast, hurricanes and flooding are annual concerns. Central states need to prepare for tornadoes. Southwestern states may be impacted by forest fires. Virtually every hospital maybe impacted by cyber-attacks at some point or could even experience violence (like an active shooter).  A recent study on disaster preparedness in New York State found that 73.3% of hospitals would not be able to operate after one week in the event of a disaster without external assistance. 

The importance of having established disaster recovery plans is critical for any health system.  Plus, ensuring continuity of patient care while minimizing operational impacts during and after a disastrous event must be planned for.   

Depending on the type of disaster, supply lines and communication can become disrupted placing further burdens on existing patient care, as well as those that are inbound for care.  Having plans in place and practicing disaster scenarios helps to minimize the impact when a disaster strikes.  Covering every disaster scenario is far too extensive for this month’s blog, but here are a few tips and skills can help you plan for a disaster scenario confidently.   This month, we look at five DR strategies your organization should take to help prepare for a disaster, along with some tips from InsiteOne to enhance your disaster recovery strategies.

DR Strategy #1: Risk Assessment and Planning

Conduct thorough risk assessments to identify potential hazards and vulnerabilities within your organization. Then, develop plans to mitigate those vulnerabilities. Creating a detailed disaster recovery plan that outlines specific protocols and procedures for different scenarios and running tabletop exercises for those scenarios improves your readiness when a disaster occurs.

InsiteOne Tip

When it comes to medical imaging, an off-site disaster recovery archive and strategy allows for continued operations.  Natural disasters like tornados or hurricanes, may cause your facility to lose access to on-site medical images.  Setting up methods to continue with image acquisition, then sending images to a cloud-based archive, helps ensure access to patient data can continue. Adding a low-cost disaster recovery PACS instance, further maintains operations, continuity of care, and improves patient outcomes.

DR Strategy #2: Backup systems, redundancies, and downtime plans

Redundant systems add costs to existing infrastructure and often are at the bottom of planning lists. Implementing redundant systems for critical infrastructure, like power supplies, data storage, and communication networks, are critical components in every disaster recovery plan. Routinely backing up all electronic health records (EHRs), patient data, important documents, and other mission critical solutions necessary for continuity of care at secure off-site locations should be established and part of your long-term disaster preparedness plans.

InsiteOne Tip

Redundant systems will duplicate some costs and some solutions may be cost prohibitive.  Ensuring daily and incremental backups of your critical IT systems should occur on a routine basis to ensure there is no lapse in patient data. Store your backups in secure off-site locations.  Adding redundancies (like outside access, power supplies, and cloud data storage) provides business continuity when a disaster strikes, improving continuity of care.  If you are interested in exploring low-cost disaster recovery RIS/PACS/VNA solutions, contact us at InsiteOne as we provide solutions to help you maintain operations when your primary systems are down, ensuring your organization can provide continuity of care at an attractive price.

DR Strategy #3: Emergency response training

Provide regular training and drills for hospital staff to ensure they are well-prepared and familiar with emergency response protocols. Train on evacuation procedures, triage, and how to handle different types of emergencies.  Emergency response training sessions provide an opportunity to practice how one would act in the event a real emergency, and that training could make the difference between life and death or help limit less downtime or data exposure.

InsiteOne Tip

Proper training for your staff is very important. Having the skills and knowledge of how to act during a disaster can mean the difference between making a disaster situation worse or lessening the impact when it occurs.  Look for content from FEMA to explore guidelines and training resources to help your organization better prepare for disaster situations.

DR Strategy #4: Collaboration and communication

Foster strong partnerships and communication with local emergency response agencies, neighboring hospitals, and community organizations. Be sure to keep your internal staff well informed but also other partners and local agencies. Establishing clear communication channels for effective coordination during emergencies is critical to ensuring that everyone understands the situation and how it is being handled.  Clear communication limits miscommunication and improves outcomes during an emergency situation.

InsiteOne Tip

When it comes to any disaster situation, training and strong communication protocols are critical. Defining everyone’s roles and responsibilities involved in an emergency or disaster helps limit challenges when an actual disaster or emergency occurs.  Clear lines of communication and established protocols, for both internal and external parties can reduce chaos and help everyone understand when and how information will be shared.  Miscommunication causes unease among staff and can potentially worsen the outcome of your situation.

DR Strategy #5: Ensure Continuity of Care and Supply Stockpiles

Continuity of care plans for patients with chronic conditions or for those with ongoing treatment needs must be established.  Creating protocols to manage outpatient care, medication delivery, and medical follow-ups during and after a disaster are equally as important. Ensure you have adequate stock of medical equipment, pharmaceuticals, and other essential medical supplies on hand to sustain operations during a disaster. Depending on the disaster type, you may need plans for patient evacuations, transportation, and shelter, should the need arise to move patients to a safer location. Creating plans for post-disaster recovery, including psychological support for patients and staff, infrastructure repairs, and long-term resilience planning, should also be evaluated to prevent similar future incidents.

InsiteOne Tip

Having 24×7 anytime, anywhere access to your data is only one part of disaster planning.  Not only is it important to have historical patient images and clinical data available but plans for how you will acquire and transmit images to off-site disaster archives should be considered.  Establishing communication protocols, maintaining continuity of care, and offering post-disaster recovery plans helps prepare your organization to handle most emergency or disaster situations.    

Conclusion

Disasters and emergencies can take many forms. Winter storms, destructive tornadoes, hurricanes and flooding are just a few to consider. The suggestions described in this blog only scratch the surface in what you should consider when creating disaster plans and should be used to encourage additional research and planning for your organization. By preparing and implementing disaster strategies, hospitals can enhance their disaster recovery preparedness and better respond to emergencies, while ensuring continuity of care continues in the most challenging situations.

Although InsiteOne does not offer complete disaster recovery preparedness planning, we do offer solutions to help ensure your imaging data is safely stored in the public or private cloud. Cloud storage ensures your data is always available on virtually any device.  Our disaster recovery RIS/PACS/VNA solutions can help you maintain continuity of care should a disaster occur.

If you want to learn how InsiteOne can help with our cloud archiving or cloud-hosted DR RIS/PACS solutions, reach out to us today to start a conversation about planning and implementing an infrastructure that will ensure you are better prepared should a disaster strike your organization.