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Enterprise Need for Speed Drives U.K. Cloud Growth

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A recent report by ISG highlights a surge in demand among U.K. companies for private and hybrid cloud services with low-latency connections. Many enterprises are opting for managed cloud options to replace costly on-premises IT. The report details that cloud providers are meeting these needs with specialized services, including sovereign cloud options for the public sector. Notably, Fujitsu and Rackspace Technology were recognized as leaders in multiple service categories, demonstrating their strong market position. The report evaluates 63 providers, underscoring the growth of cloud service demand in the U.K.

Positive
  • Increased demand for private and hybrid cloud services among U.K. enterprises.
  • Fujitsu and Rackspace Technology recognized as leaders in three quadrants each.
  • Emerging sovereign cloud options catering to the public sector.
Negative
  • None.

British companies are seeking private and hybrid cloud services from data centers with fast, low-latency network connections, ISG Provider Lens™ report says

LONDON--(BUSINESS WIRE)-- A growing number of enterprises in the U.K. are seeking managed cloud services with fast, low-latency links to global communications hubs, 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™ Next-Gen Private/Hybrid Cloud Data Center Services and Solutions report for the U.K. finds many companies are looking for alternatives to complex and costly on-premises IT. Service providers are meeting their needs with managed services, managed hosting and colocation offerings, and the most prized services are delivered through facilities with fast connections to financial centers in Amsterdam, Frankfurt, Paris and North America, the report says.

“Thanks to the concentration of high-performance data centers around London, British companies have many options for well-connected cloud services,” said Anna Medkouri, partner, technology modernization, ISG EMEA. “Data center operators are still developing more sites around hubs like Canary Wharf and the Thames Estuary to meet growing demand.”

Within the U.K.’s private and hybrid cloud market, specialized and branded private cloud services are emerging to meet the needs of specific market segments, the report says. Providers are also introducing sovereign cloud options, especially for the public sector, to meet a growing demand for cloud resources that are tightly controlled by the organization.

British companies turning to managed hosting services have two main strategies in mind, ISG says. Some want a service provider to take over management of their existing legacy infrastructure, either onsite or at a separate data center, to free up resources for transformation initiatives. Others establish and run their transformed applications and systems on a cloud-based platform operated by a provider partner.

“Most enterprises in the U.K. have chosen IT modernization strategies that involve close collaboration with cloud providers,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research.

It is increasingly common for managed services, managed hosting and colocation providers in the U.K. to use intelligent automation, based on AI, machine learning and software-defined infrastructure, to improve service delivery and address the rising cost and tight supply of skilled labor, ISG says.

The report also examines other aspects of the U.K.’s growing private and hybrid cloud market, including the role of cloud providers in enterprise sustainability initiatives and edge computing.

The 2022 ISG Provider Lens™ Next-Gen Private/Hybrid Cloud Data Center Services and Solutions report for the U.K. evaluates the capabilities of 63 providers across four quadrants: Managed Services for Large Accounts, Managed Services for Midmarket, Managed Hosting and Colocation Services.

The report names Fujitsu and Rackspace Technology as Leaders in three quadrants each and Atos, BT and Kyndryl as Leaders in two quadrants each. Accenture, Capgemini, CGI, Claranet, Cognizant, Computacenter, Digital Realty, Ensono, Equinix, Global Switch, HCL, NTT Ltd., TCS, Telehouse, T-Systems, Vodafone and Wipro are named as Leaders in one quadrant each.

In addition, Claranet, Cloudreach and Pulsant are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

The 2022 ISG Provider Lens™ Next-Gen Private/Hybrid Cloud Data Center Services and Solutions report for the U.K. 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.

Press:

Will Thoretz, ISG

+1 203 517 3119

will.thoretz@isg-one.com

Kate Hartley, Carrot Communications for ISG

+44 (0)20 3457 6403

kate.hartley@carrotcomms.co.uk

Source: Information Services Group, Inc.

FAQ

What does the ISG report indicate about U.K. cloud services demand?

The ISG report indicates a growing demand for private and hybrid cloud services among U.K. companies, seeking alternatives to costly on-premises IT.

Which companies are recognized as leaders in the ISG report for cloud services?

Fujitsu and Rackspace Technology are recognized as leaders in three quadrants each in the ISG Provider Lens report.

What are sovereign cloud options mentioned in the ISG report?

Sovereign cloud options are specialized cloud services designed for the public sector, ensuring tight control by the organization.

How many providers were evaluated in the ISG report?

The ISG report evaluates 63 cloud service providers across various service categories.

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