With 5%-6% of revenue dedicated to IT budgets (on average), the healthcare, pharmaceutical, & pharma distribution industries represent some of the world’s most aggressive IT investors. Over the past 20 years, these spend levels have created some extremely massive, complex IT environments with thousands of applications and tens of thousands of servers. These IT environments are composed of everything from antiquated mainframes to modern mobile applications backed by web services. At Apprenda, we’ve paid attention to this and felt early on we could create some big value for enterprises in health-related industries. Why were we so bullish that we could help create value? Two reasons:
- As I’ve described before, all enterprises are becoming software companies. Enterprises of the future will be defined by the software they create and whether their IT departments can support the break neck speeds at which the business needs to innovate around this new “software defined enterprise” model. Healthcare has always been an industry that has sold on-premises software to hospitals, doctors and clinics. It would seem only natural that they’d transition to a modern cloud model.
- The scale and complexity of the IT environments are an opportunity to remove friction and introduce nimble, flexible infrastructure models into the equation
We’ve seen our customers in this industry, like AmerisourceBergen and Memorial Sloan Kettering for example, leverage Apprenda using the above reasons as drivers for private PaaS adoption. According to Gartner, “Microsoft’s and Oracle’s Java software platforms are practically de facto standards in at least 85% of large-scale — Global 2000-class — IT organizations…Through 2017, the Microsoft and Java software platforms will continue to enjoy at least 85% adoption among Global 2000 IT organizations.” When another Apprenda customer, McKesson, recently invested in Apprenda’s technology as their private PaaS for .NET and Java, it added more weight to a huge market signal we’re seeing in healthcare & hospital IT – that hybrid PaaS is here to stay and is revolutionizing how the healthcare industry is thinking about IT.
We’re equipping organizations like McKesson and their peers (not to mention hospitals such as the world-renowned Memorial Sloan Kettering) with the technology to transform their IT departments. With hybrid friendly, low-friction IT environments, they are able to innovate in ways they never thought possible. These are exciting times for healthcare IT and we’re only getting started.