AIOps, FinOps Crucial to Multicloud Use in Switzerland

Rhea-AI Summary

Information Services Group (ISG) has released its 2024 ISG Provider Lens™ Multi Public Cloud Services report for Switzerland, highlighting key trends in cloud services. The report reveals that Swiss enterprises are increasingly adopting cloud-native approaches and demanding AIOps and FinOps capabilities from providers to manage costs and automate operations.

Key findings show that one-third of companies use at least one public cloud, with many utilizing multiple clouds. Providers are using AIOps to reduce operational activities by 30-50%. The report emphasizes the growing importance of data security and compliance with cloud sovereignty regulations. Additionally, there's significant pressure on SAP customers to migrate from ECC 6.0 to S/4HANA before 2030.

The report evaluates 65 providers across seven quadrants, with Swisscom leading in six quadrants. Other notable leaders include Accenture, Aveniq, and UMB leading in four quadrants each.

Positive

• Providers achieving 30-50% reduction in operational activities through AIOps implementation
• Strong market presence with 65 providers evaluated across seven service quadrants
• Swisscom demonstrates market leadership by leading in six quadrants

Negative

• High percentage of SAP users yet to begin migration to S/4HANA before 2030 deadline
• Growing complexity in managing multiple cloud environments leading to potential cost control issues
• Talent shortage in cloud expertise affecting the market

Insights

Technology Research Analyst

The latest ISG Provider Lens™ report reveals significant transformations in Switzerland's cloud services market, with several implications for Information Services Group (III) and the broader technology advisory sector. The research highlights two important trends that are reshaping the market dynamics:

AIOps Implementation Impact: The reported 30-50% reduction in operational activities through AIOps represents a substantial efficiency gain that's likely to drive increased demand for cloud transformation services. This trend positions ISG strategically as a key research and advisory provider in a rapidly evolving market. The company's comprehensive analysis of 65 providers across seven quadrants demonstrates their deep market penetration and ability to monetize industry intelligence.

Market Opportunity Indicators: Several factors point to sustained growth potential in the Swiss market:

• The pending SAP ECC 6.0 support discontinuation in 2030 creates a significant consulting opportunity pipeline
• Growing complexity in multicloud environments increases demand for specialized advisory services
• Rising emphasis on data sovereignty and security regulations strengthens the need for expert guidance

For ISG (III), this report serves multiple strategic purposes:

• Establishes thought leadership in the cloud services market
• Creates recurring revenue opportunities through subscription-based research products
• Positions the company as a trusted advisor for digital transformation initiatives

The comprehensive provider evaluation, particularly the identification of market leaders like Swisscom (leading in six quadrants), demonstrates ISG's robust research methodology and deep market understanding. This strengthens their position as a premier technology research and advisory firm, potentially driving both their research product sales and advisory service engagements.

As deployments of data and workloads to the public cloud become more complex, providers are getting creative with cost reduction initiatives, ISG Provider Lens™ report says

ZÜRICH--(BUSINESS WIRE)-- Enterprises in Switzerland increasingly are taking a cloud-native approach to managing data and workloads on public cloud infrastructure, and are demanding AIOps and FinOps capabilities from their providers to automate operations and control costs, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2024 ISG Provider Lens™ Multi Public Cloud Services report for Switzerland finds enterprises are increasingly prioritizing cost optimization as a requirement from their public cloud service providers. They also are prioritizing data security across multicloud environments and adherence to cloud sovereignty and data location regulations.

“While one-third of companies use at least one public cloud, a growing number are using several,” said Uwe Ladwig, managing director, ISG Switzerland. “To cope with this increasing complexity, many companies rely upon external service providers to manage their cloud infrastructure.”

The cloud-native approach has become increasingly important in Switzerland over the past year, the report says. Enterprises are shifting their workloads to public cloud environments to take advantage of cloud-native technologies, including containerization and microservices. At the same time, they are insisting on encrypted communication and access controls to safeguard their data. These solutions create a holistic security architecture that ensures the protection of sensitive information while taking advantage of the agile development environment.

The demand for automated migration and operation is also increasing, driving the development of intelligent automation capabilities based on AI and ML, the report says. AIOps solutions are becoming more powerful and complex, capable of identifying and solving real-world problems independently and extracting useful insights from big data. Providers, for their part, are using AIOps to reduce their operational activities by 30 to 50 percent, the report notes.

FinOps, meanwhile, has become indispensable to Swiss enterprises seeking to balance the cost of cloud computing with the need for flexibility and scalability of their IT infrastructure. Companies that integrate FinOps into their cloud strategies are able to identify savings and react quickly to changing requirements by continuously monitoring and analyzing cloud resource usage.

“The easier an enterprise’s access to public cloud resources becomes, the greater the likelihood for uncontrolled spending,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “As operations scale, naturally, so does complexity. To stay competitive in this space, service providers are scrambling to offer AIOps services, especially to keep those rising costs under control.”

The report also explores other trends, including the growing pressure on customers of SAP’s SaaS service to move off their ECC 6.0 platforms to modern S/4HANA before ECC support is discontinued in 2030. While some enterprises have completed their changeovers, a high percentage of users have yet to begin, the report says.

For more insights into the public cloud challenges facing Switzerland enterprises, including a growing talent shortage in cloud expertise, see the ISG Provider Lens™ Focal Points briefing here.

The 2024 ISG Provider Lens™ Multi Public Cloud Services report for Switzerland evaluates the capabilities of 65 providers across seven quadrants: Consulting and Transformation Services – Large Accounts, Consulting and Transformation Services – Midmarket, Managed Services – Large Accounts, Managed Services – Midmarket, FinOps Services and Cloud Optimization, Hyperscale Infrastructure and Platform Services and SAP HANA Infrastructure Services.

The report names Swisscom as a Leader in six quadrants. Accenture, Aveniq and UMB are named leaders in four quadrants each. Capgemini and ti&m are named Leaders in three quadrants each. AWS, ELCA/EveryWare, Eviden (Atos Group), Kyndryl and Microsoft are named Leaders in two quadrants each. BitHawk, Claranet, Google, HCLTech, IBM, infomaniak, Infosys, itesys, Netcloud and Wipro are named Leaders in one quadrant each.

In addition, HCLTech is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants. BitHawk, Cognizant and CONVOTIS are named Rising Stars in one quadrant each.

In the area of customer experience, Persistent Systems is named the global ISG CX Star Performer for 2024 among multi public cloud service providers. Persistent Systems earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.

The 2024 ISG Provider Lens™ Multi Public Cloud Services report for Switzerland is available to subscribers or for one-time purchase on this webpage.

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., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 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 AI, 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 1,600 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250214512586/en/

Press Contacts:

Philipp Jaensch, ISG

+49 151 730 365 76

philipp.jaensch@isg-one.com

Matthias Longo, for ISG

+49 152 341 464 63

matthias@longo-pr.de

Source: Information Services Group, Inc.

FAQ

How much operational cost reduction are providers achieving with AIOps in Switzerland?

According to the ISG report, providers are using AIOps to reduce their operational activities by 30 to 50 percent.

How many providers were evaluated in the 2024 ISG Provider Lens Multi Public Cloud Services report for Switzerland?

The report evaluated 65 providers across seven different quadrants.

What is the deadline for SAP users to migrate from ECC 6.0 to S/4HANA?

SAP users must migrate from ECC 6.0 to S/4HANA before 2030, when ECC support will be discontinued.

Which company leads in the most quadrants in the 2024 ISG Switzerland cloud services report?

Swisscom leads in six quadrants, the highest number among all evaluated providers.

What percentage of Swiss companies use at least one public cloud according to ISG (III)?

According to the report, one-third of companies in Switzerland use at least one public cloud.