Swiss Firms Embrace Local Region for Microsoft Azure Cloud

Rhea-AI Summary

The 2022 ISG Provider Lens™ report reveals that Swiss enterprises are gradually adopting Microsoft Azure, especially since a local region was established in 2020. Security concerns have hindered broader migration, but local IT service providers are increasingly committed to Azure. The pandemic has shifted IT strategies and budgets, supporting cloud technology adoption. While large firms prefer established service providers, smaller companies favor local partners. The report also highlights the use of Microsoft Power Platform, with emphasis on the cautious approach of Swiss firms towards governance in programming.

Positive

• Growing adoption of Microsoft Azure among Swiss companies since the establishment of a local region in 2020.
• Increased commitment from local IT service providers to support Azure adoption.
• Pace of cloud technology adoption accelerated by the pandemic, leading to strategic changes in IT budgets.

Negative

• Data security concerns continue to hold back many Swiss enterprises from fully migrating to Azure.
• Reluctance among some organizations to allow non-IT employees to write software using Microsoft Power Platform due to governance issues.

Domestic providers still dominate Switzerland’s cloud market, where data security is a major concern, ISG Provider Lens™ report says

ZÜRICH--(BUSINESS WIRE)-- Swiss enterprises, typically conservative about cloud migration, have grown more accepting of the Microsoft Azure cloud since a Switzerland region was established for it in 2020, 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 Switzerland finds most Swiss companies still prefer local cloud providers and are reluctant to migrate business processes and applications to Azure, mostly because of data security concerns. However, since Microsoft created the Swiss region, IT service providers have significantly increased their commitment to Azure and more enterprises have adopted it.

“Azure is beginning to find a place in the Swiss cloud business,” said Uwe Ladwig, director, ISG DACH. “Companies are migrating to Azure with service providers that have local operations and meet their security requirements.”

The pandemic changed the operational strategies and IT budgets of Swiss enterprises, increasing overall adoption of cloud technologies, the report says. In the first year of the crisis, companies had to devote considerable effort to encouraging use of the cloud to allow for remote work. In the second year, price became a major factor in cloud strategy as many IT budgets shrunk – though companies continued to invest heavily in data security.

Most large enterprises adopting Azure in Switzerland have partnered with large service providers, while small and midsize companies have chosen local partners, ISG says.

The report also explores several other aspects of Swiss Microsoft adoption, including the growing use of Microsoft Power Platform. Most companies are using it to enable citizen software development, even though many organizations in Switzerland are still reluctant to let non-IT employees write software. Cautious enterprises are mainly concerned with governance issues, because democratized programming could give the new class of developers access to sensitive data.

“Swiss enterprises can become much more agile using Power Platform,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Service providers can help them integrate it into corporate IT and build governance strategies to ensure it is used responsibly.”

The 2022 ISG Provider Lens™ Microsoft Ecosystem Partners report for Switzerland evaluates the capabilities of 24 providers across two quadrants: Managed Services for Azure and Power Platforms Services.

The report names Ambit Gruppe, Aveniq, SoftwareONE and Swisscom as Leaders in both quadrants. It names Avanade, Baggenstos, Bechtle, DIGITALL, EveryWare, T-Systems and UMB as Leaders in one quadrant each.

In addition, DataONE and DIGITALL 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 and DIGITALL.

The 2022 ISG Provider Lens™ Microsoft Ecosystem Partners report for Switzerland 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220513005097/en/

Philipp Jaensch, ISG

+49 151 730 365 76

philipp.jaensch@isg-one.com

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 Microsoft Azure in Switzerland?

The ISG Provider Lens report indicates that Swiss companies are gradually accepting Microsoft Azure, mainly due to the establishment of a local region in 2020.

How have Swiss enterprises' IT strategies changed due to the pandemic?

The pandemic has led Swiss enterprises to increase their adoption of cloud technologies and alter their IT budgets, emphasizing data security.

Which companies are recognized as leaders in the ISG Provider Lens report for Azure services?

Ambit Gruppe, Aveniq, SoftwareONE, and Swisscom are named as Leaders in both Managed Services for Azure and Power Platforms Services.

What are the concerns regarding Microsoft Power Platform among Swiss companies?

Swiss companies are hesitant to allow non-IT employees to develop software with Microsoft Power Platform due to governance concerns related to sensitive data.