Experts across industries agree cloud-based practice management software is inevitable. International consulting companies, including Accenture and Price Waterhouse Coopers, have dedicated entire divisions of their staff to the implementation of cloud-based software. The question is not if but when.
Based on information from the latest Canadian Veterinary Medical Association (CVMA) Practice Owners Economic Survey, most veterinary practice software is still server based. Existing server-based software requires downloading and installing software onto a specific computer, whereas a cloud-based program can be accessed anywhere in the world from any computer with access to the internet.
From both financial and convenience standpoints, cloud-based is the most ideal option as staff can work from home and the elimination of specialized computer hardware can save time and money. Since “the cloud” is looking after the background platform, there is no need for a server or specially formatted computers. The savings from not replacing a server can be 10 to 30 thousand dollars and computer stations are replaced with tablets or computers that simply need access to the internet.
Based on data pulled from the 2022 CVMA Economic Survey, 16.2% of practices across Canada have already taken the step to cloud-based software (Figure 1). This is expected to double in 2 years.
Figure 1.
Percentage of respondents using cloud-based software in 2022 based on responses to the CVMA Economic Survey.
Percentage of respondents using a specific server-based veterinary software across Canada are in Figure 2. The transition to cloud-based software has caused a flurry of name changes and mergers within server-based companies. The most popular server-based software Avimark, now owned by Covetrus, has held a tight grip on majority control of server-based market share over the past 10 years. They held 51% of the market share in 2022, followed by Cornerstone, controlled by IDEXX, at 20% and Impromed, another Covetrus product, at 15%. Respondents ranked these 3 the most used server-based software; together they held 86% of Canada’s total reported server-based software usage.
Figure 2.
Breakdown of server-based software market share based on responses to the 2022 CVMA Economic Survey.
Covetrus has made a large impact in the cloud-based veterinary management software space with the introduction of Covetrus Pulse (formerly eVet Practice), an all-in-one veterinary software application. IDEXX, who owns Cornerstone on the server-based software side, has 2 alternatives in the cloud-based industry: ezyVet and Neo. IDEXX acquired ezyVet in 2021 and is a full-featured cloud-server software with multiple capabilities, whereas Neo, IDEXX’s other cloud-based software, is an easy-to-use and simpler software.
Echoing the server-based market share pattern, Covetrus and IDEXX control 79% of the overall market share (Figure 3), based on the CVMA Economic Survey. IDEXX, with their products Neo and ezyVet together own 43%, whereas Covetrus holds 36% with Pulse. Three other smaller veterinary practice management software companies are emerging to be competitive in the cloud-based server environment; DaySmart Vet at 11%, Hippo at 5% and Practice Vantage at 5%. Inclusive of all competition, IDEXX is the clear current leader in the race to control the veterinary management cloud-based software.
Figure 3.
Breakdown of cloud-based software market share based on responses to the 2022 CVMA Economic Survey.
Despite promises of continued support for the existing server-based management software, the move to cloud-based software is inevitable. As server-based hardware inevitably breaks down, it makes sense to make the leap toward cloud-based software. It won’t be long before cloud-based veterinary software takes Canada by storm.
Footnotes
This article is provided as part of the CVMA Business Management Program, which is co-sponsored by IDEXX Laboratories, Petsecure Pet Health Insurance, Merck Animal Health, and Scotiabank.
Use of this article is limited to a single copy for personal study. Anyone interested in obtaining reprints should contact the CVMA office (kgray@cvma-acmv.org) for additional copies or permission to use this material elsewhere.