The Hidden Costs of On-Premise Deployment

When a provider begins to determine its EHR needs during its software evaluation process, one of its biggest decisions is whether to install its new software on-premise or have it hosted in the cloud. One of the main reasons people choose an on-premise deployment model is that everything is under your agency’s control and is hosted on your site. However, while this control can be appealing, there are some hidden costs associated with this model.

With an on-premise solution, your agency is responsible for managing your server hardware, security and data recovery, maintenance, and upgrading the software. Even if your agency already owns the necessary technological infrastructure for an on-premise deployment, if a later version of your EHR software requires an updated version of Microsoft SQL server or a new operating system, it is your agency’s responsibility to ensure you have the funds to upgrade – a potentially costly expense.

Since a cloud solution is hosted elsewhere, whether by your vendor or a third-party, you are not responsible for software upgrades or infrastructure improvements.

Make sure you are aware of  these hidden expenses when choosing your hosting model!

Posted on June 14, 2012, in Data Security, Health IT, Implementation. Bookmark the permalink. 1 Comment.

  1. I am also finding that RFP’s are now starting to be more demanding regarding network infrastructure and security. Fire suppression, staff access, circuit and power redundancy are starting to become considerations when reviewing proposals. Often these systems are difficult and expensive for a company to deploy and take specific staff expertise to manage.

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