Healthcare Cloud Evolution: Key Takeaways and Strategic Insights
by PV SubbaRao, VP, Global Healthcare and Life Sciences, Rackspace Technology


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Key takeaways from the 2025 State of Cloud Report reveal healthcare's evolving cloud strategies, focusing on security, AI advancements and digital transformation.
Healthcare organizations face unique challenges that call for strategic cloud solutions. In our State of Cloud Report Healthcare Infographic, derived from our 2025 State of Cloud Report, 150 healthcare IT leaders shared how cloud strategies are transforming their industry. Here are the main takeaways for healthcare IT professionals.
Diverse cloud adoption strategies
Healthcare workloads are spread across different cloud models. Private cloud leads with 27% adoption due to its security, reliability and the operating model. Other models include public cloud (19%), hybrid cloud (17%), multicloud (16%) and SaaS (12%). This shows that healthcare organizations value adopting unique operating models driven by compliance, scalability and innovation.
Accelerated digital transformation
Cloud adoption in healthcare is growing, with 58% of organizations managing patient data in the cloud. However, 42% still rely on on-premises solutions, showing there's room for modernization. Moving to a cloud-based model is key for better data management, interoperability and creating new opportunities to improve patient care.
Strategic investment in hybrid cloud
Hybrid cloud is growing in importance for healthcare IT leaders. Almost half (49%) consider it essential in the next two years, and 19% plan to expand its use. This highlights hybrid cloud’s ability to provide flexibility, regulatory compliance, secure data management and scalable resources.
Trust in private cloud
Private cloud remains popular in healthcare due to strict regulations. Most (60%) use it for reliability, while 46% prioritize security and compliance. This highlights the importance of robust security and compliance structures in private cloud environments, tailored to how healthcare organizations utilize both internal and external resources to establish a distinctive operating model that meets their specific requirements.
Emerging technologies gaining momentum
Healthcare is adopting cloud technologies to improve patient care and efficiency. Half of organizations (51%) are exploring cloud-enabled 5G for better connectivity, while 47% are using cloud-based AI and ML services. These investments help healthcare organizations deliver better care and efficiency more quickly.
Artificial Intelligence is transforming cloud strategies
AI is significantly transforming healthcare's cloud strategies. Nearly half (48%) use AI to improve data analytics and clinical insights, while 41% use it to boost operational efficiency. AI adoption is shifting healthcare toward proactive, data-driven management and better clinical decision-making.
Overcoming challenges in cloud management
Despite progress, healthcare organizations face major cloud management challenges. Talent shortages are a key issue, with 43% citing the skills gap as their main barrier. Additionally, 42% struggle to keep up with rapidly changing cloud technologies. To address these challenges, healthcare IT leaders need to focus on talent development, strong partnerships and ongoing education in emerging cloud technologies. Organizations are seeking new operating models with flexible partners who can improve financial efficiency, accelerate transformation and enhance security.
Looking forward
Healthcare's digital transformation through cloud adoption is set to accelerate, driven by the need for flexible, secure and integrated systems. Success depends not just on technology, but on creating resilient ecosystems that connect workloads across private, public and hybrid clouds. For healthcare IT leaders, focusing on skill development, adopting hybrid cloud solutions and using emerging technologies like 5G, AI and ML will be key to handling future challenges and leading change within their organizations.
Ready to take a closer look at how cloud is transforming the healthcare industry? Download our State of Cloud Report Healthcare Infographic. And for the full picture of cloud-driven opportunities and challenges, check out the 2025 State of Cloud Report.
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