Global Capacity, a logistics and telecom data company,
recently revealed a partnership with leading healthcare
information technology (HCIT) solutions provider
) to implement Cerner Skybox Connect, which is an available
private healthcare network.
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The Cerner Skybox Connect supports the requirements of the
healthcare business. This first-ever private network provides
both network and procurement support, which ensures access to
compliant healthcare know-how in a reliable, safe and efficient
As per Cerner Corporation, the new network has exceeded
expectations in a number of parameters, including reliability.
Global Capacity stated that its network provides Cerner's clients
with access to an effective and economical communication network
that allows network participants to work with each other.
The Cerner Skybox Connect Network is a phase-by-phase project
which should be completed before the end of the current year.
Cerner Skybox Connect will permit Cerner to provide the entire
set of Cerner Skybox cloud services, including storage and remote
Cerner remains the trend setter among pure-play, publicly traded
healthcare IT (HCIT) vendors. We believe Cerner has positioned
itself as one of the better placed clinical technology vendors to
benefit from high HCIT spending over the next few years. The
company is diversified not only on a global basis but serves both
hospitals and ambulatory outfits. Its integrated solutions have
captured market share. While greenfield opportunities are
shrinking, the replacement market is growing.
We believe long-term investors may consider Cerner, which serves
a sizeable installed hospital base. Its clients require composite
clinically-focused applications complying with 'meaningful use'
requirements and tackling 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. Cerner faces stiff competition from established HCIT
players, such as
Allscripts Healthcare Solutions
) and many others in a crowded field. The company is developing
multiple growth drivers which will ensure its future growth.
We have a long-term Neutral recommendation on Cerner. The stock
currently retains a Zacks #3 Rank, which translates into a
short-term Hold rating.