From the August 2018 issue of HealthCare Business News magazine

Software-as-a-Service, better known as SaaS, is yet another way of delivering centrally-hosted applications like PACS over the internet. SaaS provides the servers and software together as a service. This is also known as web-based software, on-demand software, or hosted software. Instead of installing and maintaining software on site, an end user simply accesses the application via the internet. This eliminates the need for software and hardware support either on site or remotely. The provider is responsible for managing all facets of the application, including security, availability, and performance. SaaS business applications are typically accessed by users using a thin client via a web browser.

The use of SaaS and even software-only sales impacts the net revenue of the PACS provider. This forces the provider to be creative and recognize the way the marketplace is going. SaaS has significantly lower initial costs, and includes both integration upgrades and service support. These last two areas mentioned are pain points with customers due to the added costs. This is why SaaS adoption is growing exponentially. In addition, SaaS reduces the amount of IT support required, as well as the requirement to have a dedicated PACS Administrator. Most vendors who offer a SaaS solution also have virtual hosting in the cloud as well. Because of this, revenue stream from hardware support can’t be counted on either.


With the sales model changing so dramatically is it time for providers to just give up entirely? On the contrary. Sellers of PACS simply need to change their approach from being system and software sellers to becoming solutions consultants. Instead of the traditional “find a need and fill it” model they need to create the need. This dictates that the provider evaluate the customer’s requirements and see how they can best provide a tailored solution that meets the requirements of the end user.

While all PACS have one form or another of an archive, whether it is spinning disk on a server or a dedicated archive with network or direct attached storage, the ability to archive in the cloud brings archiving to a new level. The best solutions are hybrid ones which combine on-site archiving with internet backup. Bringing several facilities together under the umbrella of an on-site vendor-neutral archive (VNA) makes sense on multiple levels, especially when dealing with multiple imaging centers owned by a single entity. These replace dedicated data and image silos that every clinical system uses with a central data repository. This eliminates replicated service costs, IT support costs, and a host of other costs, while also providing faster access to the data.

August 2018 Magazine

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