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U.K. Firms Seek Transformative Public Cloud Migrations
Rhea-AI Impact
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Rhea-AI Sentiment
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Rhea-AI Summary
Public clouds are becoming increasingly popular among U.K. enterprises as they navigate rising IT costs and the need for modernization, according to the latest ISG Provider Lens™ report. The study finds that businesses are shifting to public cloud services for better pricing, security, and expense management. Midmarket companies are also adopting cloud solutions, focusing on middleware modernization. The report notes a trend toward multi-cloud environments to mitigate vendor risks, with a growing reliance on managed services providers. Leaders in the sector include Claranet and Rackspace Technology, among others, highlighting a competitive landscape.
Positive
Increased adoption of public cloud services among U.K. enterprises for cost and security benefits.
Midmarket companies are following larger organizations in migrating to cloud-native models.
Expansion of multi-cloud strategies to minimize reliance on single providers.
Negative
None.
Public clouds are gaining favor as enterprises grapple with new challenges, rising IT costs and the need for application modernization, ISG Provider Lens™ report says
LONDON--(BUSINESS WIRE)--
Enterprises in the U.K. are increasingly turning to public clouds as part of digital transformations in the wake of supply chain and other challenges triggered by the COVID-19 pandemic, 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™ Public Cloud — Solutions and Services report for the U.K. finds that companies facing high costs to maintain their own IT infrastructure, along with new requirements such as remote work, are rapidly adopting cloud services. Many enterprises are beginning to favor public clouds for better service pricing and security, systems development and expense management features, the report says.
“Large organizations in Britain have already grown comfortable with public clouds and continue to see more opportunities to use them for digital transformation,” said Anthony Drake, ISG director in the U.K. “More midmarket companies are now following the same path.”
Increasingly, enterprises in the U.K. are embarking on cloud transformations that include application modernization instead of performing simpler lift-and-shift migrations, the report says. Moving to a cloud-native model allows organizations to integrate new technologies and capabilities, including AI, containers, blockchain and improved security.
Consulting and transformation service providers in the U.K. are playing a central role in making these transformations possible, allowing clients to overcome challenges associated with assessing workloads, managing change, handling the IT skills shortage and navigating integration with existing infrastructure, ISG says.
Midmarket companies migrating to public clouds tend to favor providers with ready-to-use frameworks, local delivery capabilities and a good grasp of local cultural and operational environments, the report says. Many of these clients focus on middleware modernization, treating it as the first phase of cloud modernization.
Many enterprises in the U.K. are implementing multi-cloud environments to reduce dependence on a single cloud provider, ISG says. To operate these complex solutions, they are engaging with managed services providers with cloud-agnostic frameworks that include FinOps capabilities to monitor, control and allocate cloud costs. Enterprises are also moving toward sustainable, automation-centric operating models based on carbon-neutral clouds.
“Transformative cloud migrations let companies address their business requirements, re-engineer parts of their IT infrastructure and reduce technical debt,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “There is a growing landscape of service providers in the U.K. helping all types of organizations achieve these goals.”
The report also examines several other public cloud trends in the U.K., including the migration of SAP workloads to SAP S/4HANA on hyperscale public clouds and the rise of hyperscale infrastructure services that provide regular end-to-end infrastructure updates.
The 2022 ISG Provider Lens™ Public Cloud — Solutions and Services report for the U.K. evaluates the capabilities of 56 providers across six quadrants: Consulting and Transformation Services for Large Accounts, Consulting and Transformation Services for Midmarket, Managed Public Cloud Services for Large Accounts, Managed Public Cloud Services for Midmarket, Hyperscale Infrastructure and Platform Services, and SAP HANA Infrastructure Services.
The report names Claranet, Computacenter, Rackspace Technology and Tech Mahindra as Leaders in three quadrants each. It names Accenture, Atos, AWS, Capgemini, Coforge, Ensono, Fujitsu, Google, HCLTech, Hexaware, Infosys, Microsoft, TCS and Wipro as Leaders in two quadrants each. Cognizant, IBM and Unisys are named as Leaders in one quadrant each.
In addition, Kyndryl, N-iX and Rackspace Technology are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.
The 2022 ISG Provider Lens™ Public Cloud — Solutions and Services report for the U.K. 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.
What does the ISG Provider Lens report say about public clouds in the U.K. for 2022?
The report highlights a significant shift towards public clouds by U.K. enterprises due to high IT costs and modernization needs, emphasizing better service pricing and security.
Who are the leaders in the public cloud sector according to the ISG report?
Leaders identified include Claranet, Computacenter, Rackspace Technology, and Tech Mahindra, each recognized in three quadrants.
What trends are U.K. enterprises following regarding cloud transformation?
U.K. enterprises are increasingly adopting cloud-native models, focusing on middleware modernization and multi-cloud strategies.
What role do managed services providers play in cloud migrations according to the ISG report?
Managed services providers are critical in assisting enterprises with cloud migrations, especially in developing cloud-agnostic frameworks and managing costs.
