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Cloud Computing for the Health Industry

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Cloud Computing for the Health Industry
[Type the company name] | Applying Cloud Computing to the Healthcare Insurance Industry | | |
Northwestern University
Master of Science in Information Technology (MSIT)
Dr. Alan Wolff

This abstract describes how cloud computing can be used to support business strategy and continuity, improve efficiency and lower costs for a healthcare insurer. Specifically, it proposes using cloud services during the discovery and feasibility phases of new product launch and for disaster recovery. Our research will highlight the benefits of cloud computing for conducting proof of concept implementation, hypothesis testing, and impact assessment for new insurance products. We will also explore using cloud computing for disaster recovery, discussing the advantages that it offers in meeting recovery time objectives and reviewing the challenges of data security, automation, and cost. |

Contents Executive Summary 3 Rationale for our Project 4 Business Environment 4 Business Needs and Cloud’s Fit 6 Cloud Computing Overview 7 Definition 7 Benefits/Challenges 9 Healthcare Insurer Overview 11 The Healthcare Value Chain 11 Healthcare Payer Process 11 New Product Launch: Feasibility and Discovery Processes 12 Impact Assessment 13 Cloud Recovery Services 13 Introduction to Cloud-Based Recovery 13 Advantages of Cloud-Based Recovery 14 Cloud Recovery Vendors 15 Selecting a Cloud Recovery Vendor 16 Financial Considerations 16 Cost-Benefit Analysis 16 Return on Investment 18 Conclusion 19 Figures and Exhibits 21 The Healthcare Value Chain 21 Healthcare Payer Process 22 New Product Discovery Process 23 Architecture of a Typical Healthcare Insurer 24 Spectrum of Recovery Services 25 Cloud Recovery Vendors 26 The Economic of Public Cloud Storage – Baseline 1 TB 27 The Economics of Public Cloud Storage – 3 Year TCO 28 Works Cited 29

Executive Summary
On January 13, 2010 Gartner predicted that 20% of businesses will


Cited: Wikipedia, “Electronic health record” Online, http://en.wikipedia.org/wiki/Electronic_health_record#cite_note-0 Yankee Group, “Transition to the Cloud”, Bi101.com, Online http://www.bi101.com/documents/bi101-cloud.pdf (2009) Forester Research, “How the Cloud will Transform Disaster Recovery Services” (July 24, 2009) CIO, “The Case Against Cloud Computing, Part 4” Online, http://www.cio.com/article/480595/The_Case_Against_Cloud_Computing_Part_Four [ 2 ]. Information Week, “IT Spending on Cloud Ratcheting Up,” Online, http://www.informationweek.com/news/showArticle.jhtml?articleID=224201293 (April 5, 2010) [ 3 ] [ 4 ]. AHIP, “Health Plans’ Estimated Costs of Implementing ICD-10 Diagnosis Coding” Online, http://www.ahipresearch.org/pdfs/SurveyICD-10CostsSept2010.pdf (September, 2010) [ 5 ] [ 6 ]. Yankee Group, “Transition to the Cloud”, Bi101.com, Online http://www.bi101.com/documents/bi101-cloud.pdf (2009) [ 7 ] [ 8 ]. Forester Research, “How the Cloud will Transform Disaster Recovery Services” (July 24, 2009) [ 9 ] [ 10 ]. IBM, “Cloud Computing Payback – An explanation of where the ROI comes from” Online, ftp://public.dhe.ibm.com/common/ssi/sa/wh/n/diw03009usen/DIW03009USEN.PDF (November, 2009) [ 11 ]
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