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Which Cloud Service is Right for Your Organization?

MacKenzie Gonnelly

November 24, 2025

Moving critical operations (such as document storage, databases, PHI, business applications and ancillary systems) to the cloud can reduce costs, streamline workflows, and free up your in-house IT team from routine maintenance. But when multiple cloud options exist, how do you know which cloud service is right for your healthcare organization?

More Than One Type of Cloud

The market is saturated with different types of cloud services. There are business applications in the cloud (typically referred to as “Software as a Service,” or SaaS) and infrastructure that supports those applications in the cloud (typically referred to as “Infrastructure as a Service,” or IaaS). These can be delivered via public, private, or hybrid cloud deployment models. In addition to your core clinical workloads (EHR, PHI, etc.), hosting your business systems (such as ERP, finance, payroll) and ancillary systems (such as imaging, pharmacy, lab interfaces) adds another dimension to your cloud strategy.

Public Cloud

In a public cloud, you share the application software, hardware, data-center, and operating system with all other users of the cloud. This shared model is a low-cost option, which can be attractive for non-critical business systems or ancillary platforms with less stringent compliance demands. However, because the resources are shared, if one application suffers an outage or performance issue, others may be impacted. In highly regulated environments or when hosting systems handle sensitive PHI or mission-critical operations, the public cloud can introduce heightened security and performance risks.

Private Cloud

In a private cloud, your organization’s applications and databases, including your business systems, ancillary platforms, and clinical systems, are stored on a provider’s infrastructure. This means if another customer’s application goes down, it will not affect your workloads. For hosting ancillary and business-critical systems, a private cloud offers superior performance, security, and flexibility. Although private clouds tend to cost more, many organizations find the increased investment is justified when managing critical workloads and sensitive information.

Hybrid Cloud (Public + Private)

For every argument that favors one model, there’s typically a counter-argument for the other. That’s why many organizations adopt a hybrid approach. A hybrid cloud allows you to mix and match; hosting core clinical systems and sensitive business/ancillary systems in a private cloud, while using the public cloud for less critical workloads granting flexibility. The key is deciding which applications and data should reside where, based on your existing IT resources, compliance requirements, business continuity goals, ancillary system dependencies, and future growth plans. It is essential to select a technology partner that understands healthcare, helps you assess your needs, and identifies the advantages and disadvantages of each cloud model to determine which is right for your healthcare organization.

Regardless of which cloud model you select, the biggest benefit is the ability to focus on what matters most, like providing outstanding patient care, running efficient business operations, and strengthening your ancillary ecosystem. By partnering with a trusted hosting partner, your organization can concentrate on your patients while your cloud provider handles IT concerns such as security, maintenance, backups, and support.