Healthcare Virtualization Markets to Grow by Billions to 2020

Healthcare virtualization is a growing trend across the industry as providers seek smarter data storage and infrastructure tools.

By Jennifer Bresnick

- The virtualization of the healthcare indsutry’s rapidly expanding data storage infrastructure will be a major driver for economic growth in the next few years, according to a series of new market reports. 

Healthcare virtualization

From data center colocation to infrastructure-as-a-service (IaaS) offerings, healthcare’s move to more compact, convenient, and lower-cost storage solutions will see a significant uptick over the next few years.

Growing demand for more nimble disaster recovery and data delivery will be a primary force behind the expansion of the IaaS industry, says a global, cross-industry ReportBuyer study.  The overall IaaS market is predicted to grow from $15.75 billion in 2015 to $56.05 billion in 2020, representing a compound annual growth rate (CAGR) of 29 percent.

Managed hosting solutions, including data security solutions, will provide a majority of the growth, the report states. 

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  • AWS Greengrass Expands Healthcare Cloud, IoT Capabilities
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  • Top Healthcare IoT Concerns Include Interoperability, Security
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  • Healthcare Orgs Seek VDI for Flexible, Mobile Desktop Access
  • Value-Based Performance, Resource Management Vital for HIT
  • Visibility, Control Key for Healthcare Wireless Networks
  • Comparing Healthcare SaaS, PaaS, IaaS Cloud Technology
  • Utilizing SIEM to Support Real-Time Cybersecurity Monitoring
  • Healthcare Information Systems Growing in HIT Infrastructure
  • Intraoperative Imaging Becomes Vital HIT Infrastructure Tool
  • EHR Usability, Functionality Top Concerns for Half of Hospitals
  • Data Integration Improves Houston Methodist Hospital Operations
  • Legacy Data Management Slows Real-Time Analytics Adoption
  • Big Data Analytics Solutions Significant to Health IT
  • Protecting Health IT Infrastructure with Government Resources
  • Software-Defined Networking Advances Health IT Connectivity
  • Cloud Information Management Systems Aid HIT Infrastructure
  • Sovereign Health Announces Expanded Telehealth Service
  • Pivot3 Releases Priority-Aware Hyper-Converged Infrastructure
  • VA Digital Health Platform to Improve EHR Interoperability
  • Medical Wearable Devices Strain Health IT Infrastructure
  • Remote Monitoring, Operations Drive Healthcare IoT Adoption
  • Virtustream Announces HIPAA Compliant Healthcare Cloud Service
  • Healthcare Wireless Network Deployments Facing Challenges
  • Overcoming EHR Implementation Issues for Better HIT Infrastructure
  • Dimension Data Releases New Clinical Mobility Solution
  • HIT Infrastructure Digitization Increases Mobile Flexibility
  • Healthcare Cloud Becomes IT Infrastructure Necessity
  • Container Growth Slow, Still Significant to HIT Infrastructure
  • Pure Storage, Cisco to Improve Infrastructure Data Storage
  • Hyper-Converged VDI Modernizes Health IT Infrastructure
  • Healthcare Orgs Over Spending on Unified Endpoint Management
  • Cybersecurity Task Force Urges IT Infrastructure Improvements
  • Acronis Releases Blockchain Based Software-Defined Storage
  • NAC Denies Unauthorized Devices Access To Health IT Network
  • Mobile Device Integration: Are Tablets a Dying Breed?
  • How to Secure an Evolving HIT, BYOD Mobile Infrastructure
  • Maturing IT Infrastructure Making a Mark on CIO Priorities
  • Senate Committee Spotlights Patient-Generated Health Data
  • Are Software-Defined Data Centers Growing in Health IT?
  • Mercy Centralizes Health IT Infrastructure with Virtual Servers
  • Hyper-Convergence Consolidates IT Systems, Cuts Costs
  • How IBM Universal Quantum Computing Impacts HIT Infrastructure
  • IoT Enhances Healthcare Enterprise Resource Planning
  • How WLAN Vendor Acquisition and Collaboration Affects Clients
  • VPNs, Visibility Push Healthcare Network Management Services
  • Oracle Reveals HIPAA Certification for SaaS Applications
  • Top 10 Virtualization Terms in Health IT Infrastructure
  • Future of Population Health Hinges on True Interoperability
  • Ransomware Emerges as Top Health IT Infrastructure Threat
  • Virtual Workspaces Enhance SCL Health’s HIT Infrastructure
  • WiGig Solutions to Expand Bandwidth of Healthcare Networks
  • Ivanti Expands Data Center IT Asset Management for Visibility
  • IBM Watson Expands Consulting Support to Internet of Things
  • Health IT Infrastructure Embraces Flash-Based Array
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  • Cloudera Releases Open Sourced, Machine Learning Platform
  • How SD-WAN Simplifies Healthcare Network Infrastructure
  • Trend Micro Adds Mobile Security, Device Monitoring Tools
  • Lack of HIT Interoperability Leaves Infrastructure Gaps
  • Blockchain Vendor Efforts Center on IoT in IT Infrastructure
  • Interoperability Stressed in Recent FDA Medical Device Guidance
  • Hyper-Converged Infrastructure Improves Health IT ROI
  • 40% of Hospitals Spend More on Cloud, Health IT Infrastructure
  • Using Firewalls to Strengthen Healthcare Network Security
  • New Quantum Release Eases Healthcare Cloud Integration
  • Are Specialists Gaining More EHR Interoperability Options?
  • Spending on Electronic Health Records Exceeds Expectations
  • Cloud Foundry Aims to Solve Healthcare Developer Shortage
  • Ensuring Disaster Recovery in Healthcare Cloud Data
  • Successful Medical IoT Requires Cellular Connections
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  • How Evolving Endpoint Protection Platforms Secure Devices
  • SDN Supports Digital Health IT Network Infrastructure Growth
  • Care Management and IT Costs Challenge PCMH Transitions
  • How All-Flash Arrays Can Benefit Health IT Infrastructure
  • Internet of Medical Things Improves Health IT Infrastructure
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  • Microsoft, Red Hat Improve Container Adoption for Healthcare
  • Epic Names VMware RDS Hosted Applications a Target Platform
  • FCC Requests Broadband-Enabled Healthcare Information
  • Experts Name Intelligent Enterprise Top Health IT Trend
  • HIT infrastructure Advancements Challenged by Internal Support
  • Deloitte Sees Promising Future for Healthcare Blockchain
  • Kubernetes Supports Container Management for HIT Infrastructure
  • Benefits of Cloud-Based Health Information Management Systems
  • Analytics Used to Examine Cutting HIT Infrastructure Costs
  • New Dell EMC Hyper-Converged Appliances Simplify Health IT
  • Identity Governance and Admin Protects HIT Infrastructure
  • What the Growth of Data Virtualization Means for Healthcare
  • Healthcare IaaS Deployments Call for Managed Cloud Services
  • Extreme Networks Acquires Enterprise Networking Business
  • Cloudify Launches Open vCPE Virtual Network Functions Framework
  • “As the roles of hybrid cloud, virtualization, and hosted services are evolving, the IaaS market is set to offer tremendous opportunities for growth in the next five years. The generation of huge data by the organizations is binding industries to adopt IaaS solutions and the organizations are also focusing more on their core operations, rather than being worried about the IT infrastructure maintenance.”

    Desktop virtualization is another area ripe with opportunity for vendors and providers.  As healthcare organizations look for less expensive ways to engage in big data analytics and easy storage and retrieval of massive volumes of electronic health record data, virtualization offers lower costs, easier maintenance, and improved data access capabilities.

    The desktop virtualization market is slated to grow at a 54.59 percent CAGR until the end of the decade, says Research and Markets, spurred on largely by North American clients, who will comprise 65 percent of the market.

    Healthcare will make up 12 percent of the growth, the report says, following in the footsteps of financial service industries like banking and insurance.

    Healthcare organizations will also be instrumental in the data center colocation space, helping to bring an estimated 16.1 percent CAGR to that market segment.  Colocation services will increase in value from $25.7 billion in 2015 to $54.13 billion in 2020, as organizations seek to ease the pressures of physical space constraints.

    “The major forces driving the data center colocation market are increasing adoption of cloud computing, reduction in capital expenditure, and improvement of disaster recovery capabilities. Increasing penetration of cloud has introduced the concept of hybrid platform, including cloud and traditional colocation that eases the storage and management of organizations' data,” the MarketsandMarkets report explains. “Moreover, colocation services help organizations in cost optimization and in effectively managing their processes, such as disaster recovery and safe backup system.”

    “Benefits of reduced power, cooling cost, and reduced total cost of ownership of large data facility are some of the benefits provided by the wholesale colocation, thereby, increasing its market growth during the forecast period. It also manages additional responsibilities for the management in terms of power needs, services, and support, which are increasing its popularity in the data center colocation market.”

    A previous MarketsandMarkets report also forecast significant growth in the data center power market.  Power needs gobble up half of the costs involved in running a data center, and the market for efficient power solutions is likely to increase from $12.30 billion in 2015 to $20.44 billion by 2020.