Benefits of technology consolidation for healthcare

Why organizations improve their infrastructure

Technology stack consolidation takes two forms. The first is the “desire to connect” entire enterprises, which will help maximize economies of scale and productivity. According to Nancy Rose, Charles P. Kindleberger Professor of Applied Economics at the Massachusetts Institute of Technology, this need is often driven by a desire for market power and efficiency (lower costs, better processes or products, etc.).

The second form is the streamlining of different operating technologies into a single system, such as a MACH (microservices, API-first, cloud-based and headless) architecture. A system in which technology is consolidated into one unified configuration provides greater observability and flexibility.

Healthcare IT leaders who take the latter route often want to identify outdated hardware or software that no longer meets organizational requirements. This audit forces teams to ensure that all software and hardware are compatible with each other so that any necessary IT infrastructure updates can be performed efficiently without disrupting core business functions.

This approach also limits technology proliferation, a major problem in the industry.

READ MORE: Extending healthcare IT modernization cycles may be a mistake.

“As IT grows, each new application or service requires additional time, money and expertise to properly manage and secure. Organizations’ technology stack is becoming increasingly bloated and complex, burdening IT teams with increasing time and budget demands while wasting IT spend. In fact, recent IT asset management research shows that about one-third of IT spending (e.g., desktop software, SaaS, and data center software) is wasted,” notes Rajat Bhargava in Forbes.

In response, organizations are reducing “software spending by up to 30%, reaching $3,500 per employee,” according to CloudEagle’s latest report. Experts say it’s also a manifestation of a cost-conscious culture in which IT leaders want a transparent assessment of return on investment.

Ninety-five percent of senior IT executives plan to consolidate vendors within the year, according to a recent CIO survey. Additionally, 75% of organizations plan to consolidate their cybersecurity vendors.

Benefits of technology consolidation

Technology consolidation has many advantages. It enables centralized cybersecurity and “increases risk levels by collectively sharing intelligence to prevent zero-day threats in real time,” according to Palo Alto Networks. It also helps reverse the “hidden costs of technology overload,” such as runaway spending and employee frustration. Technology consolidation may even help combat Shadow IT – “the practice of departments finding their own solutions to meet needs and managing them independently, outside the control of the IT department” – a growing problem that Gartner predicts will be involved by 2027 75% of employees.

Reducing IT complexity also helps healthcare IT leaders modernize infrastructure. A unified platform streamlines workflows by making it easier to integrate cloud and on-premises systems, increasing agility in hybrid environments. With fewer management tools, teams can improve visibility into systems, enabling better allocation of resources and faster resolution of issues.

Working with a technology partner can help health systems assess redundant software, licensing fees and outdated hardware. Once technology glut is reduced, IT leaders can reallocate funds to new technologies that are better equipped to support organizational growth.

NEXT: Here’s what healthcare IT leaders need to know about infrastructure modernization.