The emergence of disruptive technological solutions, like cloud-based software, has created a dilemma for many key decision makers within the medical industry. For decades, on-premise software has been the preferred technological solution for medical practices. It provided data security and reliability where it was needed most. However, as technology has developed, a challenger emerged. Cloud-based software offers flexibility and convenience that on-premise software can’t match. And with the digital age favouring speed and greater access to information, here’s why a move to the cloud merits consideration.

The pros and cons of on-premise software

Perhaps one of the greatest points of value of having on-premise software lies in the ability to have direct control of it. Not only in controlling where it’s used, and how, but in the form of security and customization options too. These features are of significant value to larger organisations, like hospitals and government entities, who are charged to collect and protect the data of patients. Whether by ensuring patients’ privacy is maintained, or keeping data secure, the consequences of failing to do this can be dire. The aftermath from the Waikato DHB cyberattack highlights why this is so important. Software and security procedures there resulted in data being compromised and important systems being unable to function.

Another point of value for the use of on-premise software revolves around the reliability of the software. In cases where the internet goes down, business can continue as normal. A feature that is especially important for organisations that heavily depend on having constant access to software.

Whilst having on-premise software can result in improved data security, it requires significant investments to develop and maintain a network of servers. This may be feasible for larger organisations who can afford dedicated IT departments, but it’s not cost-effective for smaller practices to implement. It also makes future scalability more difficult as scaling up requires further investments to be made. Servers are also at risk of being damaged by natural and unnatural events such as flooding, earthquake, and human error.

The pros and cons of cloud-based software

Where careful implementation of on-premise software provides security and reliability through on-site servers, flexibility and convenience are sacrificed. This is where the value of using cloud-based software is compelling. Because cloud-based software runs from a central non-physically based-place, data can be accessed from anywhere, at any time, while using any compatible device. For practices with multiple locations, the ability and convenience in accessing data from different locations has substantial value. Continued developments have also meant this can occur without significantly sacrificing data security.

Cloud-based software can also significantly reduce IT overheads by as much as 30-40% as it substitutes investments in physical servers for monthly payments to service providers. Removing the need for physical servers and replacing them with the cloud also expands the amount of data storage options. With physical on-premise servers, once the data storage cap is reached, a new server is required. However, the cloud allows for continued storage expansion without having to purchase further physical servers. It also automatically updates software which provides constant access to the latest innovations without the need to manually update a server.

What software solution is best?

Although cloud-based software offers greater convenience and flexibility when compared to on-premise software, both aren’t without their drawbacks. All software is vulnerable to cyberattacks, whether stored on-premise or in the cloud. And like many products, some are more suitable for certain organisations than others.

So, what is the best solution? Well, that depends. Given the flexibility, convenience, and cost-effectiveness, cloud-based software offers the most attractive solution for small to medium sized practices. Whereas the security, reliability and greater customization on offer by on-premise software solutions will appeal more to larger health enterprises. Cloud-based software has long been touted as the future of software, however, with physical on-premise software now seen as niche in its application. In this digital age of information where speed, interoperability, and convenience are vital, cloud-based software has emerged as the leading solution in achieving tomorrow’s healthcare innovations, today.