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TOP COMPANIES PROFILED:
Microsoft
Splunk
Adobe
Intuit
ServiceNow
Salesforce
Atlassian
Shopify
Zoom
Workday
Veeva
Datadog
Slack
Twilio

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SEGMENTED BY PRODUCT TYPE:
Private Clouds
Public Clouds
Hybrid Clouds

strong SEGMENTED BY APPLICATION TYPE:
Business
HR
Information Management

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Overview: Cloud SaaS in Healthcare IT

The healthcare industry has been one of the most consequential and challenging domains for enterprise software. Managing patient records, clinical workflows, regulatory compliance, and financial operations at scale demands robust, secure, and highly integrated platforms. Cloud computing and Software-as-a-Service (SaaS) models have become the dominant delivery mechanism for these platforms, replacing expensive on-premises infrastructure with subscription-based services hosted on remote servers.

Two companies have consistently stood out in this space: Veeva Systems (NYSE: VEEV), which focuses on life sciences and pharmaceutical clients, and Cerner Corporation (NASDAQ: CERN), which targets hospitals, health systems, and broader healthcare providers. Understanding the differences between them matters not only for investors but also for DevOps engineers, healthcare IT architects, and technology decision-makers evaluating platforms for their organizations.

The Healthcare Cloud Market: Why It Matters

Cloud adoption in healthcare has moved well past the experimental phase. Organizations use cloud infrastructure to host electronic health records (EHRs), analytics pipelines, patient engagement portals, and regulatory submission systems. SaaS delivery, in particular, reduces the operational burden on internal IT teams by offloading infrastructure management, patching, and scaling to the vendor.

Key drivers of cloud adoption in healthcare include:

• Interoperability requirements: Regulations such as the 21st Century Cures Act push providers to adopt systems that can share data via open APIs.
• Aging population demographics: Growing demand for healthcare services increases the volume of data that must be managed and analyzed.
• Cost pressure: SaaS models convert capital expenditure into predictable operational expenditure, which appeals to CFOs across the industry.
• Regulatory complexity: Pharmaceutical and clinical trial workflows are subject to strict FDA and EMA requirements, creating demand for purpose-built compliance platforms.

Other major competitors in the healthcare IT space include Allscripts (NASDAQ: MDRX), Epic Systems, and athenahealth, making the market competitive and fast-moving.

Risks of Cloud-Based Healthcare Software

Despite the tailwinds, healthcare SaaS platforms carry specific risks that engineering and operations teams must account for:

• Data security and compliance: Healthcare data is subject to HIPAA in the United States and equivalent regulations elsewhere. A breach does not just damage reputation — it can trigger regulatory penalties and customer churn.
• Vendor lock-in: Healthcare organizations tend to be highly loyal to their software vendors once implemented, but this same stickiness means migration projects are expensive and disruptive when they do occur.
• Integration complexity: Healthcare IT ecosystems are notoriously fragmented. A new SaaS platform must integrate with legacy EHR systems, lab information systems, billing platforms, and third-party data sources — all of which may use different standards (HL7, FHIR, proprietary APIs).
• Competitive pressure: Enterprise software giants such as Microsoft, Oracle, and Salesforce have entered adjacent healthcare markets, increasing competitive intensity.

Cerner Corporation: Platform, Market Position, and Financials

What Cerner Does

Cerner provides a broad suite of healthcare IT products, with its core offering being the Cerner Millennium EHR platform. Its product portfolio covers:

• Electronic health records (EHR) and clinical documentation
• Revenue cycle management and financial systems
• Population health management tools
• Health information exchange (HIE) infrastructure
• Data analytics and reporting

Cerner serves hospitals, ambulatory care facilities, physician practices, and government health agencies. As of the original publication (early 2019), the company reported partnerships with approximately 27,000 healthcare providers across 35 countries, with an estimated 24% share of the U.S. healthcare IT market.

Financial Snapshot (as of early 2019)

Cerner reported revenue of approximately $5.4 billion for fiscal year 2018, representing roughly 4% year-over-year growth. The company carried approximately $441 million in debt, largely attributable to its 2015 acquisition of Siemens Health Services. At the time of the original article, the stock had recovered approximately 11% year-to-date after a difficult Q4 2018, during which disappointing Q3 results caused the share price to fall around 12% in a single session.

Technical and Operational Considerations

Cerner’s scale means it must support a highly heterogeneous customer base with varying levels of technical maturity. Its HealtheIntent platform offers population health analytics built on a cloud-native architecture, but much of the core Millennium EHR product has deep roots in client-server architecture, which presents modernization challenges. DevOps teams working with Cerner integrations typically deal with HL7 v2 and FHIR R4 interfaces, and Cerner’s open developer program (now part of Oracle Health following Oracle’s 2022 acquisition) provides APIs for extending its ecosystem.

Veeva Systems: Platform, Market Position, and Financials

What Veeva Does

Veeva Systems occupies a distinct niche from Cerner. Rather than targeting hospitals and clinical providers, Veeva focuses on pharmaceutical companies, biotech firms, and contract research organizations (CROs). Its platform is built on top of Salesforce infrastructure (for its commercial cloud products) and includes:

• Veeva Commercial Cloud: CRM tools tailored for pharmaceutical sales teams, medical affairs, and marketing operations
• Veeva Vault: A content and data management platform used for regulatory submissions, clinical data management, and quality management — built on Veeva’s own cloud infrastructure
• Veeva CRM: A life-sciences-specific customer relationship management application
• Veeva Nitro and Veeva Data Cloud: Analytics and data services

As of the original article (early 2019), Veeva served approximately 700 enterprise customers in life sciences, with CEO Peter Gassner signaling plans to expand into adjacent industries such as consumer goods and chemicals.

Financial Snapshot (as of early 2019)

Veeva’s stock had appreciated approximately 70% during 2018 and was up roughly 35% year-to-date at the time of the original article. The company was projecting its first year of $1 billion in annual revenue — a milestone that reflected its position as one of the fastest-growing enterprise software vendors of that period. Veeva carried no significant debt at the time, giving it a stronger balance sheet relative to Cerner. Fortune magazine ranked Veeva as the second fastest-growing enterprise software company at or near the time of publication.

The original article noted a price-to-earnings-to-growth (PEG) ratio of approximately 1.66 for Veeva at the time, which some analysts interpreted as a mild overvaluation signal.

Technical and Operational Considerations

Veeva’s Vault platform is purpose-built for regulated environments. It supports 21 CFR Part 11 compliance for electronic records and electronic signatures, which is a hard requirement for pharmaceutical companies operating under FDA oversight. Vault’s document management, audit trail, and workflow automation capabilities are central to clinical trial management, regulatory submission authoring, and quality systems.

From a DevOps perspective, Veeva provides REST APIs for integrating Vault with external systems such as CTMS, LIMS, and enterprise data warehouses. Its developer ecosystem is smaller than Cerner’s but tightly focused on life sciences workflows.

Veeva vs. Cerner: Direct Comparison

Which Platform Is Right for Your Organization?

The choice between Veeva and Cerner is not typically a competitive one — these platforms serve fundamentally different buyers and use cases.

• If you are a pharmaceutical company, biotech, or CRO managing regulatory submissions, clinical content, or commercial operations, Veeva Vault and Veeva CRM are purpose-built for your workflows. The platform’s native compliance features reduce the custom development required to meet FDA and EMA requirements.
• If you are a hospital, health system, or ambulatory provider looking for an EHR, revenue cycle management, or population health tools, Cerner is a primary candidate. Its scale and breadth of product offerings make it suitable for large integrated delivery networks.
• If you are building integrations or extensions, evaluate the maturity of each vendor’s API ecosystem, the availability of FHIR-compliant endpoints, and the quality of developer documentation before committing to either platform.

Important Note on Oracle’s Acquisition of Cerner

This article draws on data from May 2019. A significant development since then is Oracle’s completed acquisition of Cerner in 2022. Cerner now operates as Oracle Health, and its strategic direction, product roadmap, and competitive positioning are evolving under Oracle’s ownership. Any evaluation of Cerner as a technology platform or investment should account for this material change.

Summary

Veeva Systems and Cerner Corporation are both significant players in healthcare technology, but they address different segments of the market with different architectural approaches. As of 2019, Veeva showed stronger short-term growth momentum and a cleaner balance sheet, while Cerner offered broader market reach and established revenue at a much larger scale. For engineers and architects evaluating these platforms today, the more relevant questions are about API maturity, compliance capabilities, integration ecosystem, and long-term vendor stability — particularly given Cerner’s transition to Oracle Health.

Original article sourced from ktva.com via bestdevops.com, published May 2019.