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Cloud-native Strategies Fuel U.S. Public Cloud Growth
Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Neutral)
Tags
Rhea-AI Summary
U.S. enterprises are at the forefront of adopting cloud technologies, according to a new report by ISG (Nasdaq: III). The 2022 ISG Provider Lens™ report highlights a 50% growth in the U.S. cloud services market since 2021, emphasizing a shift towards cloud-native transformation over simple migrations. As companies aim to optimize costs and improve data security, multi-cloud strategies are becoming commonplace. Major providers like AWS, Microsoft Azure, and Google Cloud are competing fiercely, while midsize businesses increasingly seek managed services for public cloud adoption.
Positive
U.S. cloud services market grew by 50% since 2021.
Enterprises prefer cloud-native transformation over simple migrations.
Increasing adoption of multi-cloud strategies to avoid vendor lock-in.
Midsize enterprises are increasingly moving workloads to public cloud.
Negative
The growth rate in the U.S. is only half that of the global market.
High costs and complexity of maintaining own IT infrastructure pose challenges.
Companies rebuild IT environments around containers, microservices, multiple clouds and service provider expertise, ISG Provider Lens™ report says
STAMFORD, Conn.--(BUSINESS WIRE)--
U.S. enterprises remain global leaders in cloud adoption, with many using multiple public cloud services as part of accelerating digital business transformation initiatives, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
The 2022 ISG Provider Lens™ Public Cloud — Solutions and Services report for the U.S. finds that the overall cloud services market in the U.S. has grown by 50 percent since 2021. While this was only half the growth rate of the global market, there is an accelerating trend in the U.S. toward deep transformation of enterprise IT environments using cloud-native technologies.
“Cloud-native transformation is a high priority for U.S. companies,” said Bernie Hoecker, partner, Enterprise Cloud Transformation at ISG. “They are bypassing quick lift-and-shift migrations and instead completely re-architecting and re-factoring their applications.”
Enterprises that struggle with the high cost and complexity of maintaining their own IT infrastructure are investing in software-defined environments that take advantage of the compute resources, middleware and regular updates provided by hyperscale public cloud operators, the report says. The growing adoption of public clouds in 2022 has been driven in part by improved data security and the increased use of containerization and microservices for application development.
The market for hyperscale infrastructure and platform services in the U.S. is highly competitive, ISG says. The major providers, especially the top three — AWS, Microsoft Azure and Google Cloud — are developing new services and solutions for specific industries and technologies to differentiate themselves. However, most enterprises are not choosing a single cloud provider, but instead developing multi-cloud environments to avoid vendor lock-in, which can lead to high costs and interoperability problems.
“More enterprises are choosing multi-cloud approaches, because it expands their options as their needs evolve,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Clients now negotiate usage prices, which is making the U.S. market even more competitive.”
Midsize enterprises in the U.S. are also increasingly focused on moving their workloads to the public cloud, the report says. They are turning to providers of consulting and transformation services as they take on new tasks such as assessing workloads, managing change and dealing with the uncertainties of infrastructure integration. Midmarket cloud adopters are also seeking managed services providers for potential cost savings over time.
The report also examines several other public cloud trends in the U.S., including the steady growth of the market for SAP HANA cloud infrastructure and the growing demand for FinOps tools to control, manage and optimize cloud expenses.
For more insights on the challenges U.S. companies are addressing with public cloud services, along with advice on the best ways to plan and carry out cloud migrations, see the ISG Provider Lens™ Focal Points briefing here.
The 2022 ISG Provider Lens™ Public Cloud — Solutions and Services report for the U.S. evaluates the capabilities of 56 providers across six quadrants: Consulting and Transformation Services for Large Accounts, Consulting and Transformation Services for Midmarket, Managed Public Cloud Services for Large Accounts, Managed Public Cloud Services for Midmarket, Hyperscale Infrastructure and Platform Services, and SAP HANA Infrastructure Services.
The report names Accenture, AWS, Capgemini, Google, HCLTech, Hexaware, Infosys, Microsoft, Mindtree, Rackspace Technology, TCS, Tech Mahindra, Unisys and Wipro as Leaders in two quadrants each. It names Cognizant, Deloitte, DXC Technology, GlobalLogic, IBM, Kyndryl, Navisite and UST as Leaders in one quadrant each.
In addition, Navisite is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant.
The 2022 ISG Provider Lens™ Public Cloud — Solutions and Services report for the U.S. 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, 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.
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 800 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.