Overcoming Cloud Adoption Challenges in Healthcare

Healthcare organizations are embracing the cloud to improve access to data, reduce costs and enable scalable innovation. But the path to modernization can be complex. Transitioning from on-premises systems to the cloud introduces technical, regulatory and cultural challenges, including the need to integrate legacy EHRs and maintain compliance with evolving frameworks.

If you’re planning or executing your move to the cloud, here are the most common challenges you’ll face, and practical ways to address them.

Bridge the gap between legacy and modern systems

Many healthcare environments still depend on deeply embedded on-premises systems, including electronic health records (EHRs), lab platforms and billing applications. Because these systems weren’t designed for the cloud, integration becomes one of the most demanding aspects of modernization.

You can ease the transition by focusing on these key actions:

• Use middleware platforms to connect legacy systems with cloud tools, enabling bidirectional data exchange without replacing existing systems.
• Define a clear data mapping strategy. Identify data formats that require transformation and how they’ll flow between environments.
• Deploy APIs for real-time data transfer, especially across clinical and administrative systems.
• Begin with noncritical workloads to validate integrations before migrating core systems like your EHR.

Safeguard patient data and address compliance requirements

Security and compliance remain top priorities, and with good reason. Healthcare data is among the most valuable targets for attackers, and the consequences of a breach can be severe. Beyond financial loss or reputational damage, a single incident can erode patient trust and disrupt clinical operations. At the same time, compliance is an ongoing commitment that grows more complex as new privacy laws and regional frameworks emerge. The right cloud strategy must protect data, preserve privacy and provide transparency across every stage of care delivery.

To strengthen security and compliance:

• Choose a cloud provider with HITRUST and HIPAA certifications and healthcare-specific reference architectures.
• Apply end-to-end encryption and use data masking to protect sensitive fields during storage and transmission.
• Enforce strong identity and access management, including multifactor authentication and role-based controls.
• Implement continuous monitoring and auditing to identify vulnerabilities early and demonstrate ongoing compliance.

Advance interoperability across systems and partners

Interoperability challenges often arise from inconsistent data models and proprietary technologies. Without standardization, data sharing between departments or with external entities like insurers, specialists and care networks becomes cumbersome and error prone. This fragmentation limits visibility across the care continuum, making it harder to deliver coordinated, data-driven patient experiences. Strengthening interoperability is key to unlocking the full value of digital transformation and improving decision-making at every level of care.

Building interoperability requires both technology alignment and cultural collaboration. Here’s where to begin:

• Adopt the Fast Healthcare Interoperability Resources (FHIR) standard for consistent health data exchange.
• Create a centralized cloud data lake to unify disparate data sources and simplify access for teams.
• Collaborate with vendors and cloud providers to design integrations that complement existing workflows.

Develop cloud-ready talent

Cloud transformation introduces new operating models, security frameworks and automation tools that demand specialized expertise. For many healthcare organizations, the skills required to operate and secure these environments, especially those enhanced by AI and intelligent automation, are still evolving and in short supply. Without the right capabilities, even well-designed cloud strategies can stall, limiting innovation and exposing gaps in governance, security and efficiency. Building cloud-ready talent ensures your organization can not only manage today’s workloads but also adapt to emerging technologies that will define the future of care delivery.

To close the skills gap:

• Offer targeted training for IT teams on cloud infrastructure, governance and security practices.
• Encourage staff to earn certifications from AWS, Microsoft Azure and Google Cloud.
• Partner with a managed services provider that combines hands-on support with knowledge transfer, helping your team build lasting expertise.

Control costs without slowing innovation

Cloud adoption can create opportunities for long-term savings, but those benefits depend on careful planning and visibility. Without the right financial controls, costs can escalate quickly due to migration complexity, underutilized services or inefficient workload placement. Healthcare organizations also face unique budgeting pressures, where investments must balance patient care priorities with compliance and performance requirements. A clear financial strategy helps you align cloud operations with business goals and make every dollar count.

To establish and maintain financial discipline:

• Conduct a cost-benefit analysis that factors in migration expenses and long-term operational efficiencies.
• Consider a hybrid model that maintains on-premises systems where needed while migrating strategic workloads to the cloud.
• Continuously monitor usage to identify opportunities for automation, right-sizing and optimization.

Prepare your teams for cultural change

The transition to a cloud-based operating model can alter established workflows and challenge familiar routines, creating uncertainty among staff who are comfortable with legacy systems. Success depends on how well your organization manages this human side of change. When employees understand the purpose behind the transformation and feel supported through the process, they are far more likely to embrace new ways of working and help sustain long-term progress.

To support smoother transitions:

• Involve clinical and administrative stakeholders early, incorporating their feedback into your migration plan.
• Communicate the benefits of cloud adoption clearly and frequently, connecting technology improvements to better patient outcomes.
• Provide accessible support during rollout, such as a dedicated help desk or internal “cloud champions” who can guide peers through changes.

Modernize with confidence in the cloud

Cloud technology has the potential to transform healthcare operations, but success requires a strategy that addresses the industry’s technical, regulatory and human complexities. By taking an incremental, security-conscious approach and investing in your people, your organization can modernize with confidence and sustainability.

Rackspace Technology delivers healthcare-specific cloud solutions that balance innovation with compliance, security and reliability. Whether you’re just getting started or optimizing your existing environment, we can help you modernize safely and effectively.

Start your healthcare cloud journey with Rackspace Technology.