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May 28 2025
Cloud

How Hybrid Cloud Storage Improves Healthcare Costs and Security

By blending on-premises infrastructure with cloud capabilities, healthcare leaders can optimize performance, control expenses and support innovation.

Health systems are storing and managing increasingly larger stacks of data every year, especially as they incorporate artificial intelligence, advanced analytics and the Internet of Things (IoT) into infrastructures. The value of the healthcare data storage market in the United States is projected to grow from $25.5 billion in 2024 to nearly $70 billion by 2032.

As the amount of patient data continues to rise, strategic frameworks that enable fast, secure and cost-effective access to all of that information are vital. A hybrid cloud storage solution can help support these demands by combining the strengths of cloud and on-premises environments, allowing healthcare organizations to tailor and scale their storage based on specific needs.

“We’re dealing with the aggregation of much more data in healthcare than we ever have in the past, and the hybrid approach tends to be a really good idea in this space,” says Vincent Tsugranes, chief architect at Red Hat.

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The Cost and Security Challenges of Cloud-Only Storage

Cloud storage in healthcare has become standard operating procedure, with nearly three-quarters of organizations partnering with multiple public cloud vendors. Data storage systems in the cloud are easily scalable, typically include lower upfront costs compared to on-premises solutions, and increase data usability because information can be accessed from anywhere via an internet connection. Hybrid cloud solutions, which involve leveraging public and private cloud resources, can offer even more agility.

However, a cloud-only storage strategy also carries cybersecurity risks. “A major benefit of on-prem storage is stronger control over the data,” says Andy Stone, CTO – Americas at Pure Storage. “The minute you put your data somewhere else, your level of control diminishes to some extent.”

In terms of cost, think of public cloud storage like renting an apartment. You can expect the landlord to raise prices over time. And while pay-as-you-go pricing models provide flexibility, Tsugranes warns costs can jump exponentially as data volume rises. “I’ve seen cloud costs balloon when organizations weren’t thoughtful about how much they were storing.”

DISCOVER: Hybrid cloud storage improves security, accessibility and cost efficiencies.

Hybrid Cloud Storage Creates a Smarter, More Resilient Infrastructure

On-premises and cloud-based data storage systems both have valuable security benefits. On-premises systems give IT teams total control over how the data is secured and handled. Cloud vendors also utilize security protocols such as encryption and firewalls, and store data backups in case of a server failure. A hybrid of both solutions can help healthcare organizations boost security and improve access to mission-critical data.

“A sweet spot has been to keep operational systems and data on-prem,” says Tsugranes, explaining that this strategy allows organizations to maintain sensitive patient data onsite. “But longer-term data warehousing, data analysis, storage backups and disaster recovery fit extremely well in the cloud.”

A hybrid data storage system adds resiliency in case of unplanned outages — an important consideration because, according to Amazon Web Services, a Ponemon Institute report found that healthcare organizations lose about $7,500 per minute of downtime.

“In an on-prem or colocation facility, if a server goes down, you’re generally disconnected from those records for some time,” Stone says. “But the public cloud usually recovers very quickly because they can switch the data to another region or another part of the cloud.”

On the flip side, on-premises storage solutions allow for offline accessibility. In the case of widespread or prolonged internet failure, medical providers can still access critical patient data and care isn’t disrupted.

Vincent Tsugranes
A sweet spot has been to keep operational systems and data on-prem. But longer-term data warehousing, data analysis, storage backups and disaster recovery fit extremely well in the cloud.”

Vincent Tsugranes Chief Architect, Red Hat

Hybrid Cloud Storage as the Foundation for Healthcare Innovation

Hybrid cloud storage is essential for innovation in healthcare for a couple reasons, Stone emphasizes. “A lot of companies start their AI journey in the cloud because it’s hard to get graphics processing units, which are expensive.”

GPUs are considered the best chips for high computing performance, and they’re the go-to technology to power large language models and other AI-backed applications. They also require substantial storage capacity.

“An on-prem data center has defined space and a limited amount of power available to support it,” Stone explains. He says that’s why many organizations choose to rent access to GPUs through partnerships with public cloud vendors. They can build and train applications in the cloud without worrying about having enough space.

This type of strategy enables healthcare organizations to utilize on-premises storage for daily data needs, often with central processing units. CPUs have long been used to power vital hospital operations such as medical imaging equipment and electronic health record systems, and they require less computing power than GPUs.

EXPLORE: How can a modern hybrid cloud strategy support healthcare’s AI initiatives?

Launching and Managing a Hybrid Cloud Storage System

A hybrid solution gives healthcare organizations the flexibility to scale storage capacity up or down as needed, by utilizing on-premises resources or adjusting their space in the cloud. One piece of advice Stone emphasizes is for leaders to be intentional about planning for their long-term data storage needs. “When it comes to data storage, is your organization more CAPEX- or OPEX-centric? There isn’t necessarily a right or wrong answer, but you need to think about it upfront,” Stone says.

Health systems should be intentional about ensuring a hybrid storage strategy isn’t so complex that it’s overly challenging to oversee. “Almost every organization has data in multiple clouds. There needs to be some amount of centralized control and configuration to ensure your company’s policies are being followed,” Tsugranes says.

No matter how their organization’s data storage system evolves, Tsugranes advocates that IT professionals maintain a focus on the basics of data security. “We always need robust access controls, strong encryption, audit trails and regular security assessments,” says Tsugranes. “Business leaders want to report about all the exciting innovative projects, but the basics are what really matter on a daily basis.”

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