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Published on: August 26, 2018
Economic analysis of cloud-based desktop virtualization implementation at a hospital.
Sooyoung Yoo1, Seok Kim, Taeki Kim
1Center for Medical Informatics, Seoul National University Bundang Hospital, 166, Gumi-ro, Bundang-gu, Seongnam-si, South Korea.
Implementing desktop virtualization infrastructure (VDI) in hospitals is economically viable, with a break-even point in year four and a 122.6% ROI. Increased VDI adoption enhances investment value, confirming its economic impact on hospital information systems.
Area of Science:
- Health Informatics
- Information Technology Management
- Healthcare Economics
Background:
- Cloud-based desktop virtualization infrastructure (VDI) offers benefits like simplified management and remote access.
- The economic feasibility of VDI adoption in hospital settings remains underexplored.
Purpose of the Study:
- To evaluate the economic validity of implementing VDI in a hospital setting.
- To analyze the return on investment (ROI) for a hospital-wide VDI system.
Main Methods:
- A cost-benefit analysis was conducted for a VDI implementation at Seoul National University Bundang Hospital.
- Key financial metrics including ROI, net present value (NPV), and internal rate of return (IRR) were calculated.
- Sensitivity analysis was performed based on the number of virtual machines (VMs) and users.
Main Results:
- The five-year analysis for 400 VMs (1,100 users) indicated a break-even point in the fourth year.
- Achieved a 122.6% ROI, approximately US$192,000 NPV, and 10.8% IRR.
- Sensitivity analysis showed increased investability with a higher number of adopted VMs.
Conclusions:
- Desktop virtualization infrastructure (VDI) demonstrates significant economic impact on hospital information system (HIS) operations.
- VDI is a financially sound investment for tertiary hospitals.
- The study validates the economic benefits of VDI in enhancing HIS utilization.
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