I have created a software solution for use by hospitals. It uses PHP / MySQL and cannot be compiled into binaries. A hospital that is interested in licensing this software is asking for the PHP code to be hosted on a server that they own, where several server administrators will effectively have access to this source code. This is obviously unacceptable to me. My counterproposal was that we host the source code on our own company server, but due to the risk of clinical data leaving the hospital, they do not want to go with this option either.
I am interested in your thoughts on the following options - and whether there is another way through this that would work:
Option 1: Colocate a server that my company owns and operates that only we have access to at the hospital behind a secure firewall. This protects the source code while mitigating risk for the hospital. They can basically firewall this server so that no data leaves the hospital. The network administrator I spoke to doesn't prefer this option since they have a unified network architecture they use and don't want to include another server. This response doesn't make a lot of sense to me.
Option 2: Contract with Amazon Web Services or another mutually acceptable cloud-based platform to host the PHP code. This does mean that the clinical data would leave the hospital for processing, and thus the risk of this may be less preferable than option 1.
Option 3: Am I missing any other options out there?
Thanks.