Cerner Chooses Nirvanix

Nirvanix recently revealed that Cerner Corporation (CERN - Analyst Report), a leading vendor of Electronic Health Record (“EHR”) and other healthcare IT services (“HCIT”), will adopt as part of its Cerner Skybox offering, its latest upon-demand managed storage facility (which relies on Nirvanix’s Private Cloud Storage offering). The Cerner Skybox Storage offering permits Cerner’s customers to integrate lab, clinical systems, radiology and patient records in a safe, enterprise-class cloud storage atmosphere.   

Nirvanix is a cutting-edge vendor of enterprise-grade cloud storage facilities. Its cloud storage offerings are intended for clients who desire ultra reliability and security. The company has more that 1,200 clients, of different sizes, worldwide using its Cloud Storage Network. 

Cerner continues to lead in the implementation of cloud storage in the health care business. The company upholds that the elasticity of Nirvanix’s cloud storage know-how will provide its customers a safe offering, which permits collaboration while reducing costs.  

Cerner has deployed a private scalable element of cloud storage, maintained inside its data centers, which is looked after by Nirvanix. The Nirvanix Cloud File System allows Cerner to both provide usage-based pricing for its customers as well as rapid access to content irrespective of geographic location.

Cerner will use the Nirvanix private cloud storage offering to provide its customers with enterprise-class cloud storage tailored for optimal availability of data. This offering can handle billions of items and support millions of users with inherent software ability to ensure consistency and integrity of data.   

Nirvanix’s cloud storage know-how allows Cerner to safeguard individually recognizable health care data. The company uses military-style, multiple-level security measures to empower Cerner to provide sophisticated cloud storage services.

Cerner remains the trendsetter among pure-play, publicly-traded HCIT vendors. The company has domain expertise and its wide foot-print, large reference-able client base and composite array of solutions make it an ideal candidate for investors seeking an exposure to the industry.

We believe Cerner is one of the better placed clinical technology vendors to benefit from high HCIT spending over the next few years besides tapping into the robust replacement market. Most of the risk associated with the company is perceived as industry-wide in nature with few predictable company specific risk factors.

Cerner is diversified not only on a global basis but serves both hospitals and ambulatory outfits. It is one of only two vendors that are reportedly gaining market share in the medium- to large-hospital space.

We believe long-term investors may consider Cerner, which serves a sizeable installed hospital base that requires composite clinically-focused applications complying with “meaningful use” requirements, reimbursement problems and complex coding challenges. The company has long-standing, integrated and seamless solutions for both inpatient and ambulatory settings.

On the negative side, the federal Stimulus program will gradually wind down. Moreover, the favorable growth prospects are already factored into the stock price and the risk-reward trade-off is fairly poised. Cerner faces stiff competition from established HCIT players, such as Athenahealth (ATHN - Analyst Report), Allscripts-Misys (MDRX - Analyst Report) and Quality Systems (QSII - Analyst Report) and many others in a crowded field. We currently have a Neutral recommendation on the stock.

Read the full analyst report on CERN

Read the full analyst report on ATHN

Read the full analyst report on MDRX

Read the full analyst report on QSII