Public sector healthcare organizations across Canada are eager to modernize their IT infrastructure though cloud migration. While the benefits of cloud are well-recognized, organizations continue to face financial barriers to adopting cloud and Software-as-a-Service (SaaS) technology.
While public sector healthcare organizations have traditionally hosted their IT infrastructure within self-managed data centers that were capitalized and amortized over time, the subscription-based model for cloud computing and SaaS technologies cannot be applied in the same way. Additional barriers, including provincial mandates that do not allow yearly fiscal deficits, further complicate cloud adoption for many organizations.
So how can public healthcare organizations make the jump to the cloud?
To break through these barriers, organizations must work differently. Cross-collaboration across IT teams and Finance are required to manage the enterprise budgeting shift needed to support cloud computing. Organizations should aim to clearly understand existing accounting standards that guide the treatment of cloud computing costs.
KPMG in Canada combines deep technology and digital health experience with extensive accounting knowledge to support Canadian public sector healthcare organizations in adopting cloud and SaaS technology. We are committed to supporting the acceleration of the pace of modernization for Canadian healthcare organizations.
Download the report for a review of the accounting standards impacting cloud computing costs in healthcare and explore strategies for how organizations can navigate these standards to properly account for the increased costs in their annual budgets and prepare for a successful transition to cloud computing.