Cloud Clarity: Choosing the Right Hosting Model for Healthcare

As healthcare organizations accelerate their digital transformation efforts, many are looking to the cloud to modernize infrastructure, improve scalability, and enhance data capabilities. A recent survey found that 82% of healthcare organizations use cloud-based services, and 80% of healthcare IT leaders believe cloud infrastructure offers the highest level of security for sensitive patient data.

For small and mid-size hospitals and health systems, cloud hosting offers compelling benefits, from flexibility to resilience, to potential cost savings. But embracing a cloud strategy also raises important questions. Should you stick with a single cloud provider? Embrace a hybrid setup? Or pursue a multicloud strategy to maximize flexibility and resiliency? 

This article explores the pros and cons of cloud options for healthcare organizations and provides practical guidance on governance and cost control, regardless of your hosting model. 

Governance Essentials for Any Hosting Model 

Whether you choose a single-cloud, hybrid, or multicloud approach, effective governance is non-negotiable. Focus on the following pillars: 

• Standardized Access Controls: Ensure consistent roles, permissions, and authentication policies across environments. 

• Centralized Monitoring and Logging: Aggregate data from all systems to ensure real-time visibility and faster incident response. 

• Unified Security and Compliance Frameworks: Apply data classification, encryption, and audit standards universally. 

• Vendor Risk Management: Evaluate each cloud partner with consistent criteria—especially for SLAs, incident response, and compliance. 

• Automation and Orchestration: Define how cloud services will be built, provisioned, modified, and decommissioned. Embrace modern orchestration tooling and frameworks to automate these processes. 

What Is Multicloud, and Why Is It Gaining Attention? 

Multicloud refers to the use of two or more public or private cloud platforms—such as Microsoft Azure, AWS, or Google Cloud—for different services, applications, or workloads. It’s distinct from hybrid cloud, which combines on-premises infrastructure with one or more cloud environments. 

Common multicloud scenarios in healthcare include: 

• Running analytics in one cloud platform while hosting applications in another 

• Adopting different vendors for departmental preferences or acquisition integration 

• Leveraging specific cloud-native tools or compliance strengths from different providers 

The Upside: Why Some Healthcare Organizations Choose Multicloud 

While multicloud environments are more complex, they can offer several strategic advantages for healthcare systems: 

• Vendor Flexibility: Reduce dependence on a single vendor and take advantage of best-in-class services from multiple platforms. 
• Risk Mitigation and Resilience: Distribute workloads across providers to reduce the impact of outages or service disruptions. 
• Regulatory Alignment: Select cloud providers that offer tailored solutions for regional or industry-specific compliance needs (e.g., HITRUST, FedRAMP).  
• Workload Optimization: Deploy each workload in the cloud platform that best meets its performance, pricing, or integration requirements.  
• Pricing Power: Gain negotiation leverage with vendors by maintaining flexibility to shift workloads. 

The Tradeoffs: Multicloud Isn’t Always a Win 

Despite its benefits, multicloud also comes with significant challenges—especially for independent and community hospitals with lean IT teams. 

• Operational Complexity: Using multiple platforms means more tools, integrations, and interfaces to manage, raising the risk of errors and delays. 

• Talent Gaps: Maintaining expertise across cloud platforms is difficult in smaller IT departments, leading to hiring challenges or burnout. 
• Uncontrolled Costs: Without clear visibility, organizations may unintentionally duplicate services or fail to optimize resource usage. 
• Governance Difficulties: Managing access, security policies, and compliance requirements across clouds requires more effort—and greater maturity.  

The more clouds you use, the more intentional you must be about governance, architecture, and cost management. 

How To Keep Cloud Costs Under Control 

Cloud sprawl can quickly erode any savings if you don’t plan ahead. To manage costs effectively: 

• Start With Clear Workload Planning: Assign each workload intentionally based on performance, data sensitivity, and budget impact. 

• Monitor Usage in Real Time: Use cost dashboards and alerts to identify anomalies or underutilized resources. 

• Right-Size Resources Continuously: Periodically evaluate usage and adjust compute, storage, and services accordingly. 

• Establish Chargeback or Showback Models: Track usage by department or service line to promote accountability. 

• Partner With Cloud-Savvy Experts: Engage vendors who offer optimization and cost-monitoring as part of their services—not just infrastructure provisioning. 

What’s Right for Your Organization? 

No cloud hosting option is right for every organization. For many hospitals, the most effective approach may be a “cloud-smart” strategy that balances flexibility with simplicity. 

Many find success in: 

• Starting with a single primary cloud provider 

• Adding secondary providers only when workload needs or vendor diversification truly requires it 

• Leaning on trusted partners for managed services, cost control, and cloud governance 

Ultimately, success doesn’t depend on how many clouds you use—it depends on how strategically you use them. 

Conclusion: Cloud Strategy Is About Alignment, Not Just Infrastructure 

For many hospital CIOs, the cloud conversation is no longer about “if”—it’s about “how.” Whether you pursue a single-cloud, hybrid, or multicloud model, the key to success lies in aligning your infrastructure with your business goals, staffing realities, and compliance needs. 

With the right governance, cost control, and partnership approach, you can build a cloud strategy that’s efficient today and ready for tomorrow. 

Need help developing or optimizing your hosting environment? Tegria partners with healthcare organizations to build secure, scalable, and cost-effective platforms tailored to your mission. Let’s talk.