STOCK TITAN

German Microsoft Ecosystem Cools With Slower IT Spending

Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Neutral)
Tags
Rhea-AI Summary

German enterprises are becoming more cost-conscious amid the ongoing impact of the COVID-19 pandemic but continue to migrate to cloud platforms, particularly Microsoft Azure, according to the 2022 ISG Provider Lens™ report. While IT investments have tightened due to factors like supply-chain disruptions, there is a persistent focus on cybersecurity services amid rising threats. The report indicates a robust market for Microsoft services as companies streamline their applications with fewer cloud providers, emphasizing the importance of managed services in navigating complex IT challenges.

Positive
  • Continued migration to cloud platforms despite budget constraints.
  • Increased focus on cybersecurity services due to rising threats.
  • Growth potential for Azure managed services providers as companies seek cost reduction and improved automation.
  • Healthy market outlook for Microsoft services as enterprises consolidate applications.
Negative
  • IT investments scaled back due to cost constraints and supply-chain disruptions.

Enterprises are more cost-conscious but still migrating to Azure cloud and investing in cybersecurity, ISG Provider Lensreport says

FRANKFURT, Germany--(BUSINESS WIRE)-- German enterprises scaled back some IT investments in the second year of the COVID-19 pandemic, but many are continuing their migrations to cloud platforms, including Microsoft Azure, 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™ Microsoft Ecosystem Partners report for Germany finds digital transformation projects spiked in the first year of the pandemic as companies adjusted to new operating requirements. Later, business challenges such as supply-chain disruptions forced many enterprises, especially in manufacturing and retail, to hold back on IT spending.

“German companies have become more cost-constrained and price-sensitive – except when it comes to cybersecurity services,” said Andrea Spiegelhoff, EMEA partner in Germany. “Ransomware, blackmail and espionage are major concerns.”

However, an overall migration to the cloud continues, the report says. Organizations want to adapt their IT infrastructures to become more agile in responding to rapidly changing conditions and introducing innovations. Enterprises that have already moved some basic business functions to the cloud are now starting to migrate more specialized applications.

More German enterprises are now turning to Azure managed services providers to handle data consolidation, governance, compliance and security issues related to the cloud, ISG says. Managed services can help companies reduce costs, maximize automation and keep better track of their cloud capacity utilization and costs.

“The issues have become so complex for large companies using the cloud that outsourcing is often the only viable option,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “The key to success is to build a close professional partnership.”

ISG expects a healthy market for Microsoft services over the next few years as enterprises begin to consolidate their applications with fewer cloud providers.

The report also explores other issues in the Microsoft partner ecosystem in Germany, including Eastern Europe’s uncertain future as an EU regulation-compliant zone for providers’ delivery centers.

The 2022 ISG Provider Lens™ Microsoft Ecosystem Partners report for Germany evaluates the capabilities of 60 providers across seven quadrants: Managed Services for Azure – Large Enterprises, Managed Services for Azure – Midmarket, Microsoft 365 – Large Enterprises, Microsoft 365 for Midmarket, Dynamics 365, SAP on Azure and Power Platform Services.

The report names Atos as a Leader in five quadrants and Arvato Systems and Bechtle as Leaders in four quadrants each. It names Capgemini, Deutsche Telekom (TDG), Devoteam M Cloud, SoftwareONE and T-Systems as Leaders in three quadrants each. Accenture, All for One Group, Avanade, Communardo, DXC Technology and NTT DATA are named as Leaders in two quadrants each. The report names Allgeier, AppSphere, Axians, Computacenter, DataONE, glueckkanja-gab, Infosys, KUMAVISION, ORBIT, Rackspace Technology, Scheer GmbH, Skaylink and Wipro as Leaders in one quadrant each.

In addition, ORBIT, q.beyond, Scheer GmbH and SoftwareONE are named as Rising Stars – companies with a “promising portfolio” and “high future potential” by ISG’s definition – in one quadrant each.

Customized versions of the report are available from Bechtle, Communardo, Devoteam M Cloud, KUMAVISION, ORBIT and T-Systems.

The 2022 ISG Provider Lens™ Microsoft Ecosystem Partners report for Germany 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:

+49 151 730 365 76

philipp.jaensch@isg-one.com

Philipp Jaensch, ISG

Matthias Longo, Palmer Hargreaves for ISG

+49 152 341 464 63

mlongo@palmerhargreaves.com

Source: Information Services Group, Inc.

FAQ

What does the ISG Provider Lens report say about cloud migration for German enterprises?

The report indicates that German enterprises continue to migrate to cloud platforms like Microsoft Azure despite tightening IT budgets.

How is cybersecurity impacting IT spending in Germany according to the ISG report?

The report highlights a strong emphasis on cybersecurity services among German enterprises, driven by rising threats such as ransomware.

What are the expectations for the market of Microsoft services in Germany?

ISG anticipates a healthy market for Microsoft services as companies consolidate their applications to fewer providers.

How have German companies adjusted their IT investments during the pandemic?

German companies have scaled back IT investments due to cost constraints, particularly in sectors affected by supply-chain disruptions.

Who are the leaders in the ISG Provider Lens 2022 report for Germany?

Atos is named a Leader in five quadrants, while Arvato Systems and Bechtle are Leaders in four quadrants each.

Information Services Group, Inc.

NASDAQ:III

III Rankings

III Latest News

III Stock Data

179.11M
35.05M
28.57%
60.91%
0.26%
Information Technology Services
Services-management Consulting Services
Link
United States of America
STAMFORD