ISG Provider Lens™ report sees a new focus
from companies on tracking cloud spending and increasing efficiency
while using multiple cloud services
Enterprises in the U.S. are increasingly embracing a multicloud
operating model and are looking to cloud service providers to help
them choose the right clouds for the right workloads, according to
a new report published today by Information Services Group (ISG)
(Nasdaq: III), a leading global technology research and advisory
firm.
The 2021 ISG Provider Lens™ Public Cloud – Services &
Solutions Report for the U.S. finds enterprises also looking for
support to operate their multicloud environments in the most
efficient and effective manner possible—especially given the
growing complexity of such environments. Today, enterprises are
running on multiple clouds that need to be interconnected,
integrated and managed, and they are turning to providers for
help.
“Enterprises have recognized that moving to the cloud is
beneficial to their businesses,” said Bernie Hoecker, partner and
global leader of ISG’s enterprise cloud transformation business.
“They are increasingly willing to approach managed services
providers to help them move to the cloud in the right way and
choose the right cloud for a specific workload.”
Demand for cloud-based services is surging in the Americas
region, the 3Q21 ISG Index™ found. Annual contract value (ACV) for
as-a-service solutions soared 51 percent in the third quarter, to a
record $6.9 billion, the fastest growth rate for this segment since
ISG began tracking it in 2014.
The U.S. report notes significant growth for cloud service
providers in the past year, as more and more organizations turn to
remote work during the COVID-19 pandemic. Most managed services are
now virtually and remotely delivered, including cloud
transformation and migration of workloads.
Cloud providers are offering a range of services to help
customers with their public cloud adoption. This includes
consulting services to formulate application transformation
strategies and creating roadmaps that identify whether a workload
needs a lift-and-shift transition or whether it should be
rearchitected or replatformed to improve performance and reduce
operating costs.
Increasingly, providers are entering into value-based deals in
which benefits are shared between the enterprise and the provider,
the report says. They are also embracing platforms and tools, such
as AI and machine learning, to automate cloud operations.
Meanwhile, many enterprises are turning to cloud financial
operations, or FinOps, providers to help them track cloud
expenditures, as they use cloud resources in a dynamic and complex
manner, the report says. Use of FinOps services has skyrocketed in
recent years as cloud adoption has grown.
FinOps can increase the business value of the cloud by bring
together technology, business and finance professionals with a new
set of processes that help organizations efficiently monitor and
track their cloud resources.
The report notes that many service providers have entered into
strategic relationships with public cloud infrastructure providers
such as AWS, Microsoft Azure and Google Cloud Platform. Both sides
are working closely together to co-develop cloud offerings and have
a joint go-to-market strategy.
Providers and hyperscalers are focusing on improving and
strengthening security measures to help enterprises improve
customer experience in a highly secure cloud environment. They are
also sharing best practices to develop cloud solutions for faster
migrations, improved efficiencies in cloud resource management and
increased adoption of next-generation technologies.
Many cloud service providers are also investing to upskill their
talent in the U.S., due to a shortage of skilled professionals in
the market, the report adds. Service providers are working closely
with hyperscalers and third-party training institutes to train and
certify their employees in various cloud technologies.
The 2021 ISG Provider Lens™ Public Cloud – Services &
Solutions Report for the U.S. evaluates the capabilities of 52
providers across six quadrants: Consulting and Transformational
Services for Large Accounts, Consulting and Transformational
Services for the Midmarket, Managed Public Cloud Services for Large
Accounts, Managed Public Cloud Services for the Midmarket,
Hyperscale Infrastructure and Platform Services, and SAP HANA
Infrastructure Services.
The report names Accenture, AWS, Capgemini, Cognizant, Google,
HCL, Hexaware, IBM, Infosys, LTI, Microsoft, Mindtree, Rackspace
Technology, TCS, Tech Mahindra, Unisys and Wipro each as Leaders in
two quadrants. Mphasis was named a Leader in one quadrant.
In addition, Mphasis, Navisite and NTT Ltd. were named Rising
Stars—companies with “promising portfolios” and “high future
potential” by ISG’s definition—in one quadrant each.
ISG has also published a related report covering providers of
FinOps platforms serving the global market. The 2021 ISG Provider
Lens™ Public Cloud – Services & Solutions global report
evaluates the capabilities of 13 providers in one quadrant:
Multicloud FinOps Platforms.
The global report names Apptio (Cloudability), Flexera, NetApp
(Spot) and VMware (CloudHealth) as Leaders in the quadrant. HCL
(MyXalytics FinOps) was named a Rising Star in the quadrant.
Customized versions of the U.S. report are available from AWS,
Hexaware, Navisite and Unisys.
The 2021 ISG Provider Lens™ Public Cloud – Services &
Solutions report for the U.S. and the 2021 ISG Provider Lens™
Public Cloud – Services & Solutions (Multicloud FinOps
Platforms) global report are available to subscribers or for
one-time purchase on the ISG website.
About ISG Provider Lens™ Research
The ISG Provider Lens™ Quadrant research series is the only
service provider evaluation of its kind to combine empirical,
data-driven research and market analysis with the real-world
experience and observations of ISG's global advisory team.
Enterprises will find a wealth of detailed data and market analysis
to help guide their selection of appropriate sourcing partners,
while ISG advisors use the reports to validate their own market
knowledge and make recommendations to ISG's enterprise clients. The
research currently covers providers offering their services
globally, across Europe, as well as in the U.S., Germany,
Switzerland, the U.K., France, the Nordics, Brazil and
Australia/New Zealand, with additional markets to be added in the
future. For more information about ISG Provider Lens research,
please visit this webpage.
A companion research series, the ISG Provider Lens Archetype
reports, offer a first-of-its-kind evaluation of providers from the
perspective of specific buyer types.
About ISG
ISG (Information Services Group) (Nasdaq: III) is a leading
global technology research and advisory firm. A trusted business
partner to more than 700 clients, including more than 75 of the
world’s top 100 enterprises, ISG is committed to helping
corporations, public sector organizations, and service and
technology providers achieve operational excellence and faster
growth. The firm specializes in digital transformation services,
including automation, cloud and data analytics; sourcing advisory;
managed governance and risk services; network carrier services;
strategy and operations design; change management; market
intelligence and technology research and analysis. Founded in 2006,
and based in Stamford, Conn., ISG employs more than 1,300
digital-ready professionals operating in more than 20 countries—a
global team known for its innovative thinking, market influence,
deep industry and technology expertise, and world-class research
and analytical capabilities based on the industry’s most
comprehensive marketplace data. For more information, visit
www.isg-one.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20211129005483/en/
Will Thoretz, ISG +1 203 517 3119 will.thoretz@isg-one.com
Erik Arvidson, Matter Communications for ISG +1 617 755 2985
isg@matternow.com
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