Data Sovereignty, Security Top Cloud Concerns in France
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Insights
The accelerated adoption of hybrid cloud solutions in France, as highlighted by the ISG Provider Lens™ report, signifies a crucial trend in the IT infrastructure domain. Enterprises are increasingly seeking multicloud solutions to navigate stringent data sovereignty and security regulations. This shift towards a hybrid, multicloud approach is primarily driven by the need to comply with local regulations such as SecNumCloud and Health Data Hosting (HDS), which are unique to France and impact companies dealing with sensitive data.
From a market perspective, the emphasis on data sovereignty and the complexities of SecNumCloud certification create a competitive landscape favoring Eurozone-based cloud service providers. This dynamic could potentially influence stock valuations and investment opportunities within the European cloud services market. The report's indication that international hyperscalers struggle to obtain SecNumCloud certification, while they can meet health data hosting requirements, suggests a nuanced market where local and global providers must strategically position themselves.
Furthermore, the adoption of site reliability engineering (SRE) practices points to an industry-wide shift towards more reliable and efficient cloud services. This could lead to increased customer satisfaction and retention, ultimately impacting the bottom line of service providers. The report's findings may also influence investors to look favorably upon companies that demonstrate strong capabilities in consulting, transformation and managed services, as indicated by their leadership positions across multiple quadrants.
The ISG report's findings could have notable financial implications for cloud service providers operating in France. The need for compliance with specific French regulations, such as SecNumCloud and HDS, may result in increased operational costs for service providers aiming to cater to French enterprises. These costs could affect profit margins, especially for those unable to achieve the necessary certifications and thus missing out on a segment of the market.
Companies like Orange Business, Accenture, Capgemini and HCLTech, which are named as leaders in multiple quadrants of the report, may experience positive investor sentiment as their comprehensive service offerings align with the market's evolving needs. This alignment could translate into a competitive edge, driving revenue growth and possibly leading to upward trends in their stock prices.
On the other hand, the report suggests barriers for non-Eurozone cloud providers, which may limit their market share in France and could impact their global revenue streams. Investors might exercise caution with these providers, as their growth potential in the French market is curtailed by regulatory challenges.
The ISG Provider Lens™ report underscores the critical role of compliance in the cloud services industry, particularly within the French market. The SecNumCloud and HDS certifications are pivotal in ensuring that cloud service providers meet the French government's stringent security and data sovereignty requirements. This has significant implications for companies classified as Operators of Vital Importance (OVIs) and those handling health-related data.
For cloud service providers, the ability to navigate and adhere to these regulations is not just a matter of legal compliance but also a strategic differentiator that can open up or restrict market access. The report's emphasis on the challenges faced by foreign cloud providers in obtaining SecNumCloud certification reflects the importance of understanding local regulatory landscapes. This insight is crucial for stakeholders, including investors, as it affects market entry strategies and could influence investment decisions based on a provider's ability to meet compliance standards and capitalize on market opportunities.
Enterprises in
The 2023 ISG Provider Lens™ Multi Public Cloud Services report for
“It is not imperative that enterprises employ cloud-native technologies for all their applications,” said Lyonel Roüast, president of ISG SEMEA, based in
Two regulations unique to
While international hyperscalers can easily meet France’s stricter health data hosting requirements, obtaining SecNumCloud certification is difficult if not impossible for foreign cloud providers, the ISG report says. Indeed, because the certificate has no value outside
“When it comes to choosing cloud providers, enterprises should follow a best-of-breed approach,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “They should carefully make a choice that enables them to balance cost, compliance, performance and market differentiation.”
The report also examines how an increasing number of service providers are offering site reliability engineering (SRE) as a core guideline for managed services and cloud architecture design.
The 2023 ISG Provider Lens™ Multi Public Cloud Services report for
The report names Orange Business as a Leader in four quadrants, while Accenture, Capgemini and HCLTech are named as Leaders in three quadrants each. AWS, Claranet, Devoteam, Eviden, Microsoft, ScaleSquad, Sopra Steria, TCS and Wipro are named as Leaders in two quadrants each, while Kyndryl, OVHcloud and oXya are named as Leaders in one quadrant each.
In addition, Kyndryl, LTIMindtree and Randstad Digital (Ausy) are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.
A customized version of the report is available from Randstad Digital.
The 2023 ISG Provider Lens™ Multi Public Cloud Services report for
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
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 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 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
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Press Contacts:
Lucy Hermann-Taylor, ISG
+33 06 76 01 35 48
lucy.hermann-taylor@isg-one.com
Will Thoretz, ISG
+1 203 517 3119
will.thoretz@isg-one.com
Source: Information Services Group, Inc.
FAQ
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