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Healthcare Cloud Computing Market is no longer a strategic “nice-to-have” in healthcare — it has become an essential pillar of broader digital transformation. In Deloitte’s 2025 global health trends survey, 90% of organizations reported that rapid digital transformation would significantly influence their strategy, while 88% highlighted the rise of virtual care, digital tools, and connected care ecosystems. The growing adoption of generative AI (81%) is accelerating this shift even further.

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Cloud platforms are the foundation enabling many of these healthcare transformation initiatives. In this guide, we explore the current technology landscape, benefits and applications of cloud computing in healthcare, emerging trends, and the challenges organizations must navigate.

What Is Cloud Computing in Healthcare?

Cloud computing in healthcare involves using remotely hosted servers, networks, and applications delivered over the internet to manage, process, and store medical data. Traditionally, providers relied on on-premises data centers, but moving workloads to the cloud supports telehealth growth, boosts operational efficiency, and enhances both clinician and patient experiences.

Healthcare organizations typically adopt one of three deployment models — public, private, or hybrid cloud. Public cloud providers such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP) offer HIPAA-eligible services, BAAs, encryption, and advanced security controls, making them a strong and cost-efficient option for environments containing protected health information (PHI).

Some organizations continue to use private cloud environments for tighter control, regulatory preferences, or specialized workload needs. In practice, most IT leaders favor hybrid or multicloud strategies to balance security, compliance, performance, and cost.