Enterprises Look to Multi-Cloud Environments to Counter Technological Disruption

STAMFORD, Conn., March 06, 2020 (GLOBE NEWSWIRE) — Enterprises across the globe are embracing multi-cloud environments, with more than half of all public cloud enterprise customers using more than one cloud provider, according to a new report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.The 2020 ISG Provider Lens Public Cloud Solutions and Service Partners Archetype Report finds enterprises still seeing some barriers to a multi-cloud setup, despite growing demand. Orchestration in the public cloud is a challenge, because it requires a complex setup, and many users still find it difficult to manage multi-cloud environments.Vendor lock-in concerns and cloud provider interoperability are other challenges, the report adds.Still, many enterprises are finding it necessary to move to the public cloud, the report says. “Enterprises are realizing they are not immune to the disruption caused by advancing technologies,” said Jan Erik Aase, director and global leader, ISG Provider Lens Research. “They see that they must have a strategy to compete in the modern marketplace that is driven by tech-savvy consumers.”The digital journeys of enterprises require next-generation public cloud infrastructure with new-age applications that are flexible, agile and user friendly, the report suggests.The report finds the public cloud managed service provider ecosystem has been growing. Early entrants have an advantage, but small and mid-sized providers are gaining traction with their unique offerings of public cloud managed services for multi-cloud environments.Several smaller providers are being acquired by large system integrators to either eliminate the competition or to acquire unique capabilities or client segments, the report adds. Consolidation in the MSP market will continue as technologies evolve.Service providers are differentiating themselves by creating their own intellectual property, bringing in vertical-specific expertise and forming strategic partnerships with public cloud providers, the report says.The 2020 ISG Provider Lens Public Cloud Solutions and Service Partners Archetype Report examines four different types of clients, or archetypes, looking for public cloud services. The report evaluates the capabilities of 26 public cloud providers to deliver services to the four archetypes:Traditional archetype: These customers haven’t accepted the relevance of cloud for their computing needs. Their IT environment is mainly mainframe and legacy applications. They have not embraced cloud computing due to regulations, security issues or pure disdain for new technology. However, this archetype is open to learning more about cloud computing benefits and is seeking assistance to assess its computing environment and strategy formulation.Pragmatic archetype: Most of these buyers are second- or third-generation outsourcers that have matured in terms of people, processes and practices. They are looking to engage with multiple service providers in a managed services and professional mode. In these relationships, service providers are required to comply with service-level agreements or business-level agreements and with agreed deadlines. In this model, the client no longer micro-manages operational aspects and enables its providers to ensure proper monitoring and measurement of productivity.Transformational archetype: These customers take a strategic view of their entire IT ecosystem. They have plans to transform their current IT infrastructure by shifting to cloud environments. However, transformative clients will not force-fit legacy infrastructure and applications to the cloud if strategic value is not realized. They are willing to take risks to realize that value. Their goals are to have quicker, more closely integrated, and user-friendly applications, platforms, and systems in place. Unlike managed services buyers that look for improvements in processes and systems, a transformation-oriented client is seeking to change the environment itself.Next-gen archetype: The next-gen buyer is an early adopter of cloud and follows a “cloud-first” approach. The focus is on using “born-in-the-cloud” applications to leverage cloud-native capabilities that are used to develop applications in containers, deployed as microservices, and managed on elastic infrastructure through agile DevOps processes and continuous delivery workflows. Next-gen clients are not encumbered by the requirements of legacy operations. They consider IT as a change agent and an enabler of revenue and profit growth.Among the providers ISG evaluated, HCL, TCS and Wipro were named leaders across three archetypes. Accenture, Atos, Capgemini, CGI, Cognizant, DXC Technology, Infosys and Rackspace were named leaders in two archetypes, and Birlasoft, Fujitsu, IBM, LTI, Microland, Mindtree, Mphasis, NIIT, Tech Mahindra, T-Systems, Unisys and Zensar as leaders in one.All providers identified as leaders or rising stars have the opportunity to highlight their leadership position on their websites. A customized version of the report is available from Mindtree.The 2020 ISG Provider Lens Public Cloud Solutions and Service Partners Archetype Report is available to ISG Insights™ subscribers or for immediate, one-time purchase on this webpage.About ISG Provider Lens™ ResearchThe ISG Provider Lens™ 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 and Latin America, as well as in the U.S., Germany, 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.ISG Provider Lens Archetype reports offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.About ISGISG (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 70 of the top 100 enterprises in the world, 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.# # #Will Thoretz
Information Services Group, Inc. +1 203 517 3119
[email protected] Jim Baptiste
Matter Communications for ISG
+1 978 518 4527
[email protected]

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