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Nordic Enterprises Want Cloud and Data Center Providers to Help Manage Hybrid IT Systems

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According to a report by Information Services Group (Nasdaq: III), Nordic enterprises are increasingly shifting towards hybrid IT and multi-cloud environments. Over half of these companies plan to migrate applications to a multi-cloud setup. The report predicts significant growth in IT outsourcing, driven by scalability and cost-reduction goals. Furthermore, there is rising demand for managed hosting services and physical security solutions, including robot monitoring in data centers. ISG evaluated 66 providers, naming leaders across various service categories, highlighting a competitive landscape.

Positive
  • Over half of Nordic companies plan to migrate to multi-cloud environments.
  • Substantial growth in IT outsourcing deals is anticipated in the next 2-3 years.
  • Increasing demand for managed hosting services is projected as enterprises expand globally.
  • Report identifies multiple leaders in data center services, indicating competitive market dynamics.
Negative
  • Adoption of hyperconverged infrastructure services remains low compared to other European regions.

STOCKHOLM, Sweden, July 20, 2020 (GLOBE NEWSWIRE) -- Enterprises in the Nordic region are looking to cloud and data center services providers to help them manage their move to hybrid IT and multi-cloud environments, according to a new report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2020 ISG Provider Lens™ Next-Gen Private/Hybrid Cloud – Data Center Services & Solutions Report for the Nordics finds hybrid and multi-cloud setups becoming the new normal in the Nordic region. More than half of all companies in the Nordics are planning to migrate their applications to a multi-cloud model, the report says.

The report sees substantial growth in IT outsourcing deals in the Nordics in the next two to three years, with scalability, cost reduction goals and cloud adoption driving demand. Nordic enterprises are exploring ways that service providers’ artificial intelligence and automation platforms can improve their IT operations.

At the same time, Nordic companies are using service providers to manage their cloud services. “With the advent of complex and advanced technologies, companies are no longer able to handle all aspects of IT transformation on their own,” said Jan Erik Aase, director and global leader, ISG Provider Lens Research. “Companies outsource all or part of their IT and cloud management to save costs, to focus on their core businesses and to access innovative services from providers.”

Meanwhile, in the colocation space, the report finds that hyperscalers are driving growth in this segment in the Nordics. Colocation service providers can help companies comply with regulations, and ensure high reliability, scalability and flexibility in data center operations, the report says.

Nordic companies also are focused on physical security of their systems, and the data center market in the region is likely to witness an increased use of robot monitoring systems, including sensors and video surveillance, the report adds.

The report also sees growing demand for managed hosting services in the Nordics in the next two to three years. With enterprises expanding their businesses globally, their need for space and utilities has increased significantly. Hosting services providers associated with cloud providers and hardware vendors are offering exclusive services to clients.

The report also sees Nordic enterprises exploring hyperconverged infrastructure services, although adoption is low compared with other parts of Europe. Nordic enterprises are looking for ways to reduce power, space and cooling costs, leading to a growing interest in hyperconverged infrastructure.

The 2020 ISG Provider Lens™ Next-Gen Private/Hybrid Cloud – Data Center Services & Solutions Report for the Nordics evaluates the capabilities of 66 providers across seven quadrants: Managed Services for Large Accounts, Managed Services for the Midmarket, Managed Hosting for Large Accounts, Managed Hosting for the Midmarket, Colocation Services, Data Center Security Products and Hyperconverged Systems.

The report names Basefarm (Orange Business Services) as a leader in five quadrants, and TeitoEVRY as a leader in four. ATEA and IBM are named as leaders in three quadrants, and Capgemini, Cisco, DXC Technology, Fujitsu and T-Systems are named leaders in two. Accenture, Broadcom/Symantec, Check Point, Dell EMC, DigiPlex, Equinix, Ficolo, HCL, HPE, Interxion, Juniper Networks, KMD, LTI, Nordlo, Nutanix, Palo Alto Networks, TCS, Trend Micro, VMware and Wipro are all named leaders in one quadrant.

Customized versions of the report are available from DigiPlex, Ficolo and LTI.

The 2020 ISG Provider Lens™ Next-Gen Private/Hybrid Cloud – Data Center 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 and Latin America, as well as in the U.S., Germany, 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.

The series is a complement to the ISG Provider Lens Archetype reports, which offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.

Starting this year, each ISG Provider Lens™ study will include a Global Summary to help enterprise subscribers better understand provider capabilities across all geographic markets covered by that study. All ISG Provider Lens™ reports also will now include an Enterprise Context feature to help executives quickly identify key insights related to their roles and responsibilities.

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.

 

FAQ

What does the ISG report say about IT outsourcing in the Nordics?

The ISG report predicts substantial growth in IT outsourcing deals in the Nordic region over the next two to three years.

How many companies in the Nordics plan to migrate to a multi-cloud setup?

More than half of all companies in the Nordics are planning to migrate their applications to a multi-cloud model.

What are the key trends in the Nordic data center market according to ISG?

The report highlights increased demand for managed hosting services and the use of robotic monitoring systems for physical security.

Which companies are leaders in the ISG report for data center services?

Basefarm and TeitoEVRY are named leaders in several categories, with ATEA and IBM also recognized for their capabilities.

What is the future outlook for managed hosting services in the Nordics?

The report sees growing demand for managed hosting services as Nordic enterprises expand their businesses globally.

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