Choosing the right hosting model is a critical decision for MedTech companies developing connected medical devices. The choice between self-hosted and managed hosting solutions impacts security, compliance, scalability, and long-term costs.
While self-hosting offers greater control and customization, it also requires significant infrastructure, IT resources, and regulatory oversight. On the other hand, managed hosting provides a streamlined, compliant, and scalable solution but may limit flexibility.
In this article, we’ll explore the key benefits and considerations of both approaches to help you determine the best fit for your connected medical device.
Managed Hosting Benefits & Considerations
Managed hosting is when a third-party provider handles the infrastructure, security, maintenance, and compliance requirements of a software or device platform. This service typically includes server management, data backups, software updates, security monitoring, and technical support, allowing companies to focus on product development rather than IT maintenance.
In the MedTech space, managed hosting ensures regulatory compliance (HIPAA, FDA, MDR, etc.), data encryption, uptime reliability, and scalability, making it an attractive option for companies that want a secure and efficient hosting environment without the burden of in-house management.
Managed hosting provides many benefits, including built-in regulatory compliance, easy scalability, reduced maintenance burdens, and ongoing support. But these benefits often come at the expense of flexibility, requiring companies to consider the pros and cons of this option before committing.
Regulatory Compliance & Security
Medical device and healthcare software companies must navigate a complex regulatory landscape, making compliance a top priority when choosing a hosting solution. Managed hosting providers often offer infrastructure specifically designed to meet FDA, HIPAA, MDR, and other regulatory requirements, reducing the burden on in-house teams. These providers implement built-in data encryption, access controls, and continuous monitoring to protect sensitive patient data and ensure compliance with evolving industry standards.
By leveraging a managed solution, companies can streamline audits and regulatory reporting while minimizing security risks. However, while compliance features are built-in, businesses remain responsible for proper configuration and adherence to best practices in data handling.
Scalability & Performance
As MedTech companies grow, their hosting needs evolve. Managed hosting allows for seamless scalability, ensuring infrastructure can expand alongside device adoption, increasing data volume, and new feature rollouts.
Cloud-based managed services offer on-demand resource allocation, preventing performance bottlenecks and ensuring smooth operation, even during peak usage. And optimized server infrastructure enhances uptime and responsiveness, critical for real-time data processing and remote patient monitoring. However, companies must be mindful of scaling costs—while managed hosting reduces infrastructure overhead, usage-based pricing models can lead to higher costs as demand increases.
Reduced IT & Maintenance Burden
Managing IT infrastructure internally can be resource-intensive, requiring dedicated teams to handle updates, security patches, and system maintenance. With managed hosting, these responsibilities shift to the provider, freeing internal resources to focus on core product development and innovation.
This model also reduces the need for in-house IT staff, lowering overall operational costs. Hosting providers also ensure automatic updates and proactive security patches, reducing the risk of system vulnerabilities. While this hands-off approach improves efficiency, it also means companies have less direct control over infrastructure changes and must work within the provider’s update schedules.
Support & Reliability
Reliability is essential in healthcare applications, where downtime can disrupt patient care and critical operations. Managed hosting providers offer 24/7 support, real-time monitoring, and disaster recovery solutions, ensuring high availability.
Many providers also guarantee uptime through Service Level Agreements (SLAs), which define performance standards and provide compensation in the event of service disruptions. While these guarantees enhance reliability and peace of mind, companies must carefully evaluate SLA terms, response times, and support availability to ensure they align with their business needs.
Self-Hosted Solutions Benefits & Considerations
Self-hosting is when a company manages its own server infrastructure, data storage, security, and maintenance rather than relying on a third-party provider.
This model offers full control over system architecture, customization, and data management, allowing organizations to tailor their hosting environment to specific regulatory and operational needs. However, self-hosting also requires significant investment in IT resources, including hardware, cybersecurity, compliance management, and ongoing system maintenance.
For MedTech companies, self-hosting can be beneficial for organizations that need strict data control and highly customized solutions, but it also comes with challenges such as regulatory complexity, scalability limitations, and higher long-term costs.
Greater Control & Customization
One of the primary advantages of self-hosting is the complete autonomy it provides over system architecture and data management. MedTech companies can design and configure their infrastructure to meet the specific needs of their devices, software, and users, ensuring optimal performance and integration.
This level of control allows for custom security protocols, tailored data processing workflows, and proprietary optimizations that may not be possible with managed hosting. Additionally, companies can dictate update schedules and avoid dependency on third-party service providers. However, with this control comes increased responsibility, requiring in-house expertise to configure, maintain, and secure the system effectively.
Compliance Challenges
Maintaining regulatory compliance is one of the biggest hurdles in self-hosting. MedTech companies must ensure adherence to local and global standards without the built-in compliance support offered by managed hosting providers.
This requires internal expertise in security, data privacy, and regulatory frameworks, along with dedicated resources to perform audits, maintain documentation, and implement security updates. Any misstep in compliance can lead to significant legal and financial consequences, making it essential for companies to invest in governance frameworks and regular risk assessments.
Infrastructure & Cost Considerations
Self-hosting demands substantial upfront investment in servers, data centers, cybersecurity measures, and networking infrastructure. Unlike managed hosting, where costs are predictable and spread over time, self-hosting requires companies to purchase and maintain hardware, implement robust security protocols, and hire IT staff to manage operations.
The ongoing costs for software updates, system monitoring, and compliance adjustments can add up quickly. While self-hosting may be cost-effective for organizations with large-scale operations and existing IT infrastructure, smaller companies may find these financial and resource burdens difficult to sustain.
Scalability Challenges
As MedTech companies grow, their self-hosted infrastructure must scale accordingly, which often means purchasing additional servers, expanding data storage, and increasing IT staff. Unlike cloud-based managed hosting, where resources can scale on demand, self-hosted environments require careful capacity planning to accommodate growth without service disruptions.
Without proper redundancies and failover mechanisms, there is also a higher risk of downtime, system failures, and performance bottlenecks, which can directly impact device functionality and patient outcomes. To mitigate these risks, companies must invest in load balancing, backup systems, and disaster recovery strategies, further increasing operational complexity.
Managed Hosting vs. Self-Hosting Quick Reference Table
Managed Hosting | Self-Hosting | |
Control & Customization | Limited control over infrastructure; predefined configurations with some customization. | Full control over system architecture, security, and configurations. |
Regulatory Compliance | Built-in compliance with FDA, HIPAA, MDR, and other regulations; provider manages audits and updates. | Requires in-house expertise to implement and maintain compliance frameworks. |
Security & Data Management | Secure, HIPAA-compliant infrastructure with automated updates, encryption, and monitoring. | Security fully managed by the company, requiring dedicated IT and cybersecurity resources. |
IT & Maintenance Burden | Provider handles updates, patches, monitoring, and server management. | Internal IT team must manage all updates, patches, and system maintenance. |
Scalability | Easily scales with demand; resources allocated dynamically. | Requires additional infrastructure investment and planning for scalability. |
Performance & Uptime | Optimized infrastructure with SLAs ensuring high uptime and performance. | Performance depends on in-house infrastructure; requires redundancy planning to avoid downtime. |
Cost Considerations | Predictable, subscription-based pricing; lower upfront investment. | High upfront costs for infrastructure, staffing, and security; ongoing maintenance expenses. |
Data Control | Data stored in provider-managed cloud; limited direct control over data storage. | Full control over data storage, access, and security measures. |
Best For | Companies that prioritize ease of management, regulatory compliance, and scalability without heavy IT investment. | Organizations with strict data control needs, in-house IT capabilities, and specific infrastructure requirements. |
NEX Accommodates Both Managed & Self-Hosted Solutions
Managed hosting presents a powerful solution for MedTech companies looking to enhance security, maintain compliance, and scale efficiently, all while reducing IT burdens. At the same time, self-hosting offers unmatched control and customization, making it a viable option for organizations with specialized compliance needs and in-house IT expertise.
Regardless of which hosting option you’re leaning toward, NEX by Sequenex can help.
Our customizable software platform offers MedTech companies the flexibility to choose between managed hosting and self-hosting, ensuring that organizations can align their software infrastructure with their specific IT, security, and compliance needs.
For companies seeking a turnkey, fully managed solution, NEX provides cloud-based hosting on Sequenex’s HIPAA-compliant infrastructure, eliminating the burden of server management, maintenance, and security compliance. This option allows businesses to focus on device innovation while benefiting from prebuilt regulatory safeguards, automated updates, and seamless scalability.
Alternatively, for organizations that require greater control over their data and infrastructure, NEX supports self-hosted deployments. This customer-hosted model enables companies to run NEX on their own servers while still leveraging the platform’s prebuilt architecture, secure data management, and regulatory compliance features. Self-hosting is ideal for businesses with stringent security policies, unique IT requirements, or a need for direct infrastructure oversight.
By offering both hosting models, NEX ensures that MedTech companies—whether startups, research institutions, or established device manufacturers—can deploy connected medical device solutions in a way that best supports their operational and compliance strategies.
Find the Best Hosting Model for Your MedTech Solution
Ultimately, choosing between managed hosting and self-hosting comes down to your company’s priorities. Managed hosting offers convenience, built-in compliance, and reduced IT burdens, making it ideal for companies looking for a streamlined, scalable solution. On the other hand, self-hosting provides maximum control and customization but requires significant investment in infrastructure, security, and regulatory oversight.
No matter which path you choose, NEX provides the flexibility to support both hosting models, ensuring your connected medical device software solution aligns with your security, compliance, and operational needs. Connect with us today to learn how NEX can help you deploy a connected device platform that meets your exact requirements.
