By 2026, over 68% of healthcare providers will have moved at least part of their workloads to the cloud. With 90% of hospitals now operating vital systems on cloud infrastructure, the question is no longer if but how to choose between cloud and on-premise hospital software.
This guide provides a comprehensive comparison to help you make the right deployment decision.
Market Overview 2026
Key Statistics
- 68% of healthcare providers will use cloud by 2026
- 90% of hospitals operate vital systems on cloud
- 80% of healthcare CIOs believe cloud is critical to digital strategy
- 70% of healthcare organizations have implemented some cloud solutions
Drivers for Cloud Adoption
- Rising operational costs
- AI-powered analytics requirements
- Stricter compliance requirements
- Interoperability mandates
- Telehealth expansion
Cloud vs On-Premise: Quick Comparison
Total Cost of Ownership (TCO)
Cloud-Based Costs
- Lower upfront: No server or data center investment
- Predictable monthly: Subscription based on users/usage
- Hidden costs: Data egress fees, storage overages, advanced features
- Long-term: May exceed on-premise for high data volumes
On-Premise Costs
- High upfront: Servers, storage, networking, licenses
- Predictable after setup: Known maintenance costs
- Hidden costs: Hardware refresh, IT staff, power, cooling
- Long-term: Often lower for large, stable organizations
Security & Compliance
Cloud Security
- Enterprise-grade security from major providers (AWS, Azure, GCP)
- Built-in intrusion detection and encryption
- HIPAA-eligible services with BAAs available
- Automatic security patches
- Less administrative overhead
On-Premise Security
- Complete control over security measures
- Data never leaves your facility
- Must build or integrate security features
- Full responsibility for compliance
- Requires dedicated security expertise
Accessibility & Workflow
Cloud Advantages
- Access from anywhere - office, home, transit
- Supports telehealth and remote patient monitoring
- Mobile access for physicians on rounds
- Real-time collaboration across locations
On-Premise Limitations
- Generally limited to local network
- VPN required for remote access
- Can slow care delivery for mobile physicians
- However: Works during internet outages
HospitalOS: Best of Both Worlds
HospitalOS offers flexible deployment options to match your needs:
On-Premise Deployment
- Full data control and sovereignty
- Works offline during internet outages
- One-time license fee
- Ideal for: Regions with unreliable internet, strict data requirements
Cloud Deployment
- No hardware investment
- Automatic updates and backups
- Access from anywhere
- Ideal for: Multi-facility networks, telemedicine focus
Hybrid Deployment
- Critical systems on-premise
- Analytics and collaboration in cloud
- Best for: Large hospitals wanting both control and flexibility
Which Should You Choose?
Choose Cloud If:
- You're a smaller clinic with limited IT resources
- You need rapid deployment
- Remote access is essential
- You prefer predictable monthly costs
- You have reliable, fast internet
Choose On-Premise If:
- You're a large hospital with robust IT team
- You have strict data sovereignty requirements
- Internet reliability is a concern
- You prefer one-time licensing costs
- You need complete control over infrastructure
Conclusion
The cloud vs on-premise decision depends on your organization's specific needs. HospitalOS offers flexible deployment options - on-premise, cloud, or hybrid - with one-time licensing that eliminates ongoing subscription costs.
Contact MedSoftwares to discuss the best deployment option for your facility.
