Nordic Firms Seek New Ways to Make Multicloud Pay

Rhea-AI Summary

ISG (Nasdaq: III) Report: Nordic Enterprises Pursue Cost Efficiency Amid Cloud Expenditure Rise

Positive

• Increased operating expenditures have led Nordic enterprises to pursue solutions for cost efficiency in multicloud environments
• FinOps gaining traction among Nordic enterprises to optimize cloud costs and improve sustainability
• ISG report identifies the need for Nordic firms to keep a lid on cloud expenditures amidst geopolitical developments and electricity price increases

Negative

• None.

FinOps may hold the key to pinpointing the savings required to offset the sharp rise in cloud expenditures, ISG Provider Lens™ report says

STOCKHOLM--(BUSINESS WIRE)-- Increased operating expenditures have led Nordic enterprises to pursue solutions that improve the interoperability and cost efficiency of their multicloud environments, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2023 ISG Provider Lens™ Multi Public Cloud Services report for the Nordics finds that recent geopolitical developments and the resulting increase in electricity prices have made the need more urgent for Nordic enterprises to optimize cloud operations and reduce costs. According to Eurostat, although Finland saw significantly lower electricity prices, non-household consumers in Sweden, Norway and Denmark experienced price rises of 60 percent, 75 percent and 100 percent, respectively.

“To help Nordic firms keep a lid on cloud expenditures, service providers are turning their attention toward interoperability and cloud-agnostic capabilities,” said Ola Chowning, ISG partner, North Europe. “A scalable and truly cross-functional multicloud environment should substantially reduce cloud costs and improve sustainability as well.”

For many enterprises in the Nordics and elsewhere, FinOps may hold the key to achieving the cost-efficiency they seek, the ISG report says. The practice of continually optimizing the operational costs of the cloud, FinOps is gaining significant traction among enterprises in the Nordics, mostly driven by inflationary pressures induced by an increase in energy expenditure, the report says.

According to the ISG report, cloud unit economics — a metric that gives companies better visibility into ROI per unit investment in the cloud — will become a key performance indicator as companies try to figure out what levers they should focus on to reduce costs and enhance savings.

Some of those levers include locating idle or overworked instances and reviewing contracts to identify partially utilized savings plans, the report says. Unlike the waterfall method of optimizing cloud costs, FinOps consists of advisory services and tools that work from the ground up, ISG says. In addition, a niche in FinOps practice, known as GreenOps, allows companies to reach business objectives while prioritizing sustainability, the report says.

“In the coming years, Nordic enterprises are likely to take a more conservative approach to spending on public cloud infrastructure,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “A FinOps strategy will support this approach by optimizing cloud resources and, consequently, reducing cloud consumption and cloud bills.”

The report also examines the Gaia-X framework, a European initiative formed to protect data security, privacy and sovereignty from non-EU entities.

The 2023 ISG Provider Lens™ Multi Public Cloud Services report for the Nordics evaluates the capabilities of 49 providers across seven quadrants: Consulting and Transformation Services for Large Accounts, Consulting and Transformation Services for Midmarket, Managed Services for Large Accounts, Managed Services for Midmarket, FinOps Services and Cloud Optimization, Hyperscale Infrastructure and Platform Services and SAP HANA Infrastructure Services.

The report names IBM and Tietoevry as Leaders in four quadrants each, while Accenture, Capgemini, HCLTech and Wipro are named as Leaders in three quadrants each. AWS, Crayon, Fujitsu, Google, Kyndryl, LTIMindtree, Microsoft, Orange Business, Sopra Steria, TCS and Tech Mahindra are named as Leaders in two quadrants each, while CGI, DXC Technology, Infosys, IT Relation and Solita are named as Leaders in one quadrant each.

In addition, Infosys and LTIMindtree 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 Tietoevry.

The 2023 ISG Provider Lens™ Multi Public Cloud Services 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., 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 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 Stamford, Conn., ISG employs more than 1,600 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/20231214727388/en/

Press Contacts:

Will Thoretz, ISG

+1 203 517 3119

will.thoretz@isg-one.com

Julianna Sheridan, Matter Communications for ISG

+1 978-518-4520

isg@matternow.com

Source: Information Services Group, Inc.

FAQ

What is the focus of the ISG Provider Lens™ report for the Nordics?

The report focuses on evaluating the capabilities of 49 providers across seven quadrants, including Consulting and Transformation Services, Managed Services, FinOps Services, and more, for large and midmarket accounts in the Nordic region.

What is the significance of FinOps for Nordic enterprises?

FinOps is gaining traction among Nordic enterprises to optimize cloud costs and improve sustainability, driven by inflationary pressures induced by an increase in energy expenditure.

What are some of the levers identified by the ISG report to reduce cloud costs?

The report mentions locating idle or overworked instances, reviewing contracts to identify partially utilized savings plans, and utilizing cloud unit economics as key performance indicators.

Which companies are named as Leaders in the ISG Provider Lens™ report?

IBM and Tietoevry are named as Leaders in four quadrants each, while other companies like Accenture, Capgemini, HCLTech, and Wipro are also recognized as Leaders in multiple quadrants.

Where can the 2023 ISG Provider Lens™ Multi Public Cloud Services report for the Nordics be accessed?

The report is available to subscribers or for one-time purchase on the ISG website.