Healthcare service costs are rising all over the world. That is mainly due to the lack of healthcare professionals and IT services.  Cloud computing is an emerging trend that provides a robust infrastructure that enables delivering low-cost services over the internet. In this paper, we conducted an analytical study on the e-health services in Palestine to investigate the current state-of-art and examine all challenges and opportunities to benefit from this technology. Collected data has been analyzed and the results revealed that there is a clear gap between the IT service models provided by Palestinian healthcare service provider, and the potential models based on latest IT trends; mainly, cloud computing.