Laboratory Information Systems (LIS) are the backbone of modern labs; streamlining workflows, improving efficiency, and ensuring compliance. However, when it comes to choosing the right LIS, the decision often boils down to two options: Cloud-Based or on-premise. Each has its strengths and weaknesses, and the best choice isn’t always black and white.
But the truth may hide right in the middle, as they say. Stick with the article until the end, and you may discover that there’s a third option – the hybrid approach. So, before you decide on your path – or even more critical – before you decide to upgrade your current LIS – let’s test your options.
Cloud-Based LIS
Cloud-based LIS solutions have gained popularity in recent years, and for good reason. They offer flexibility, scalability, and cost-effectiveness that traditional on-premise systems often struggle to match.
Pros:
- Accessibility: Cloud-based LIS can be accessed from anywhere, making remote work and multi-site collaboration seamless.
- Lower Upfront Cost: Without needing extensive hardware or IT infrastructure, cloud-based LIS solutions often require less initial investment.
- Automatic Updates: With a Cloud-based system, software updates, security patches, and compliance adjustments mostly happen automatically, reducing the burden on internal IT teams.
- Scalability: A Cloud-based LIS can scale with your needs without requiring major infrastructure changes.
Cons:
- Internet Dependency: A strong, reliable internet connection is essential; any downtime can impact operations. This indeed seems to be a problem from the 1990s, but considering that not all labs are located in the US or central Europe… It’s actually a pretty big con.
- Data Security Concerns: While cloud providers invest heavily in security, some labs prefer complete control over their data.
- Customization Limitations: Some Cloud-based LIS platforms offer less flexibility for highly specialized workflows. We can tell you exactly who, but we don’t want to bad mouth anyone in this article…
Cloud-based LIS solutions are rapidly gaining traction. According to a 2023 report by Grand View Research, cloud-based LIS accounted for over 43% of the global market share. Another study from Clinisys Laboratory Solutions found that in 2021, cloud-based systems dominated with more than 65% revenue share.
On-Premise LIS
For many labs, on-premise LIS remains the gold standard, offering full control, customization, and reliability. These systems have been the industry’s go-to for decades and still hold a firm place in many laboratory environments. But, as in everything in life, there are drawbacks.
Pros:
- Full Control: With an on-premise LIS, labs have complete ownership over their data, security, and system configurations.
- No Internet Dependency: On-premise solutions function independently of Internet access, ensuring uninterrupted operations.
- Deep Customization: Many labs require highly specialized workflows that on-premise systems can tailor more effectively than some cloud-based solutions.
Cons:
- High Upfront Costs: Hardware, servers, IT personnel – on-premise LIS requires a significant initial investment.
- Ongoing Maintenance: Updates, security patches, and compliance changes are the lab’s responsibility, requiring dedicated IT resources.
- Limited Scalability: Expanding an on-premise LIS often means investing in additional infrastructure, which can be costly and time-consuming.
- No Internet Dependency: Yes, it’s also a con, naturally. When the internet goes down, an internet-dependent lab is rendered practically useless. Multi-site laboratories and organizations cannot function in such a case – because let’s face it, everything and everyone is online today. However, working with minimal-to-no internet dependency means taking a big risk when communicating with other facilities, especially in a scenario where a lab isn’t somewhat dependent on the internet, which is practically unrealistic. So, internet connectivity is a must, no matter how we look at it.
Despite the rise of cloud-based LIS, on-premise solutions still hold a significant portion of the market. The same Grand View Research report noted that the on-premise segment could experience some growth due to its customization capabilities and reliability.
Sample Test Case: Cloud-Based vs. On-Premise
Let’s try and put all this information to the test: If we wanted to compare how long it takes to handle a sample on each LIS practice (cloud-based or on-premise), it would be nearly impossible, as many variables could affect the measuring. However, while specific statistics comparing sample processing times between cloud-based and on-premise LIS may be limited, there’s one key factor that suggests cloud-based solutions may offer better performance – reduced latency.
Cloud services often utilize Content Delivery Networks (CDNs) and strategically located data centers to minimize latency. This setup allows faster access to data and quicker processing speeds compared to on-premise systems, which may experience delays due to limited hardware capabilities or network constraints.
For example, Google Cloud makes use of Google’s global fiber network and local data centers to provide faster content delivery with less delay. Several tests have shown that apps running on Google Cloud can be up to 40% faster than those running on traditional on-site systems, especially when using Google’s CDN services.
Cloudflare, a popular CDN provider, prides itself on the fact that websites using their CDN can see up to a 50% reduction in latency. This is because Cloudflare has a large network of data centers that store content closer to users, cutting down the travel distance for data and reducing delays.
Why the Hybrid Approach Makes Sense
Given the strengths and weaknesses of both models, a hybrid LIS that blends web-based flexibility with on-premise control offers the best of both worlds. Labs can maintain local control over critical functions while leveraging cloud capabilities for accessibility, scalability, and security.
Why Hybrid Works? First, it enables better data control with cloud convenience, as sensitive data can remain on-premise while cloud functionalities enhance accessibility and collaboration. Moreover, hybrid solutions introduce improved disaster recovery workflows, with cloud backups that ensure data integrity in case of local failures.
When it comes to scaling, the hybrid approach offers the most cost-effective solution. Labs can expand without overhauling their infrastructure, optimizing costs while keeping operations smooth. In addition, the hybrid approach offers enhanced security and compliance assistance, combining cloud security innovations with on-premise safeguards to create a highly effective defense against cyber threats.
The demand for hybrid LIS solutions is growing as labs seek the best of both worlds. According to the World Health Organization, public hospitals in developing nations that implemented integrated laboratory-hospital information systems between 2020 and 2022 experienced an average reduction of over 30% in medical test report turnaround times.
A 2023 report by MarketsandMarkets highlights the growing need for advanced data management solutions in laboratories, emphasizing the benefits of integrating LIS with electronic health records (EHR). This integration facilitates streamlined lab workflows, standardized diagnostics, and cost reductions associated with deploying independent LIS systems.
The Bottom Line
The LIS landscape isn’t a one-size-fits-all scenario. Web-based LIS offers accessibility and cost savings, while on-premise LIS provides control and customization. If you’re looking for an LIS solution that doesn’t force you to choose between cloud convenience and on-premise control, a hybrid approach, like the one LabOS provides, allows labs to leverage the best features of both, ensuring efficiency, security, and future scalability.
