Nordic Enterprises Embrace Cloud Services to Improve Customer Experience

Rhea-AI Summary

ISG Provider Lens™ report indicates that Nordic enterprises are significantly increasing spending on public cloud services to enhance customer experience and broaden their global reach. The report highlights a surge in cloud adoption across various industries over the past six quarters. Notably, organizations are transitioning from legacy systems to cloud technologies, with a marked increase in SAP HANA workloads moving to the cloud. The report evaluates 52 cloud service providers, naming TietoEVRY a leader in four quadrants, with several other companies recognized as leaders or rising stars in various segments.

Positive

• Increase in public cloud spending among Nordic enterprises enhances global business outreach.
• Growing migration of SAP HANA workloads to the cloud due to cost efficiency and workload optimization.
• Recognition of TietoEVRY as a leader in four quadrants indicates strong market presence.

Negative

• Some companies are experiencing a 'digital deadlock' due to legacy systems and resistant management.

ISG Provider Lens™ report sees Nordic companies also turning to the cloud to expand their businesses across the globe

STOCKHOLM--(BUSINESS WIRE)-- Enterprises in the Nordic region are increasing their spending on public cloud services and digital transformation to improve customer experiences, according to a new report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2021 ISG Provider Lens™ Public Cloud – Services & Solutions Report for the Nordics finds enterprises in the region also increasing cloud spending to expand their product and service portfolios across the globe. In response, public cloud service providers are focused on improving their digital transformation advisory services. Cloud spending in the Nordics has increased across all industry verticals over the last five to six quarters.

“Enterprises in the Nordic region have embraced the cloud and emerging digital technologies to become more cost effective and enhance customer experience,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Companies are also looking for help from public cloud service providers to scale their digital solutions and reinvent their businesses models.”

Some companies are making steady progress in their digital transformation and cloud journeys by working with service providers to accelerate adoption, while others are trapped in a “digital deadlock,” with legacy technologies, entrenched organizational structures and hesitant management combining to hinder growth, the report says.

As Nordic enterprises embrace the cloud and larger digital transformation efforts, they are seeking collaborative and co-innovation partners instead of traditional IT services providers, the report adds. Companies in the region are demanding agile IT delivery, which requires infrastructure modernization and the use of cloud technologies such as microservices, containers and embedded AI. IT providers, the report says, must recognize the cloud as the default infrastructure option and adjust their delivery organizations accordingly.

The report also sees public cloud services as the mainstream solution for developing new business models. The IT market in the Nordics has long been one of the most progressive markets in Europe, and while some large enterprises there continue to run their applications on legacy systems, there is a significant increase in the number of enterprises embracing cloud and other digital models during the past two years.

In addition, the report finds an increased migration of SAP workloads to the cloud in the Nordics, in part because of accelerated digital adoption prompted by the COVID-19 pandemic. Nordic enterprises in the past were reluctant to transfer their SAP HANA workloads to the cloud due to data sovereignty and security issues, but the pandemic has refocused executives’ emphasis on cost reduction and workload optimization. Many banking and retail companies in the region have begun migrating SAP HANA workloads to the public cloud using a proof-of-concept model.

The 2021 ISG Provider Lens™ Public Cloud – Services & Solutions Report for the Nordics evaluates the capabilities of 52 providers across six quadrants: Consulting and Transformational Services for Large Accounts, Consulting and Transformational Services for the Midmarket, Managed Public Cloud Services for Large Accounts, Managed Public Cloud Services for the Midmarket, Hyperscale Infrastructure and Platform Services, and SAP HANA Infrastructure Services.

The report names TietoEVRY as a Leader in four quadrants and Accenture, AWS, Basefarm (Orange), Capgemini, CGI, Fujitsu, Google, HCL, IBM, IT Relation, LTI, Microsoft, NNIT, Nordcloud (IBM) Solita, Sopra Steria, TCS and Wipro as Leaders in two quadrants. Crayon, Eficode and Tech Mahindra are named Leaders in one quadrant.

In addition, Basefarm (Orange) was named a Rising Star—a company with “promising portfolios” and “high future potential” by ISG’s definition—in two quadrants. Crayon, Infosys and Tech Mahindra are named Rising Stars in one quadrant.

Customized versions of the report are available from AWS, Eficode and TietoEVRY.

The 2021 ISG Provider Lens™ Public Cloud – Services & Solutions Report for the Nordics 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., Germany, Switzerland, the U.K., France, the Nordics, Brazil and Australia/New Zealand, 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 700 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211201005354/en/

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 Provider Lens report say about Nordic companies and cloud spending?

The report indicates Nordic enterprises are boosting public cloud spending to enhance customer experiences and expand globally.

Which company is recognized as a leader in the ISG Provider Lens report for the Nordics?

TietoEVRY is named a leader in four quadrants in the ISG Provider Lens report.

How has the COVID-19 pandemic affected cloud adoption in the Nordics?

The pandemic has accelerated digital adoption, prompting more companies to migrate SAP workloads to the cloud.

What challenges do some Nordic companies face in their cloud transformations?

Some companies are facing 'digital deadlock' due to their reliance on legacy technologies and organizational resistance.