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'The Amazon Effect' and its impact on healthcare

March 18, 2022
Business Affairs

Migration to the cloud
The pandemic has changed the way consumers are interacting with the health system. In some respects, they are more willing to share personal data. To manage the new systems and influx of data, organizations are transitioning to cloud-based models. The increase in cloud computing has become essential to healthcare and prompted companies to look at how they can shift workloads to the cloud.

According to a Gartner forecast, worldwide spending on cloud services is expected to increase 21.7% from $396 billion in 2021 to $482 billion in 2022. The cloud is essential to developing interoperable data platforms and patients’ willingness to share health data is equally important to help drive innovation and discovery. Migrating to the cloud allows clinicians and patients as consumers to communicate better and be more proactive in health management. As consumers become more comfortable using at-home diagnostic tools and companies introduce new technologies and devices to diagnose, new software will also be needed to secure the data being recorded in each platform.
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Crowded space – Is there room for everyone?
When Amazon enters any new space, the impact on the wider industry is often brought into question. After seeing “the Amazon effect” on retail, it’s only natural for smaller companies in healthcare to question whether they will face the same fate as smaller retailers. The healthcare industry is massive and large enough for smaller companies to carve out a space in addition to Amazon. The presence of Amazon and other Big Tech players certainly pushes the healthcare industry as a whole to innovate. As companies adopt new practices, the delivery of healthcare will move forward as a result of their influence.

How business is done as a result of Amazon’s impact – and what consumers have grown to expect – is changing the way numerous industries operate. Healthcare is no exception. In the next decade, the healthcare system will evolve to provide consumers with the service and attention they crave from their healthcare experience.

About the author: Pouria Sanae is the co-founder and CEO of ixlayer.

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