U.K. Firms Turn to Hybrid Clouds for Security, Compliance

Rhea-AI Summary

According to the 2024 ISG Provider Lens™ report, U.K. enterprises are increasingly adopting private and hybrid cloud solutions over public clouds. This shift is driven by growing needs for enhanced security and regulatory compliance. The report highlights that:

1. Companies are moving towards managed hosting services for data storage and business continuity.
2. U.K. data centers are positioning themselves as connectivity hubs, offering advanced communication infrastructure.
3. Large enterprises prioritize reliable uptime, secure data storage, and high-performance network connectivity.
4. Midsize enterprises focus on comprehensive technical support and proactive maintenance.
5. Providers are adopting FinOps practices to optimize costs while maintaining sustainability goals.

Positive

• Increasing adoption of private and hybrid cloud solutions by U.K. enterprises
• Growing demand for managed hosting services offering flexibility and multi-cloud connectivity
• Data centers positioning as connectivity hubs with advanced communication infrastructure
• Providers adopting FinOps practices to optimize costs and maintain sustainability

Negative

• Shift away from public clouds due to security and compliance concerns
• Rising energy costs impacting data center operations

Companies in the U.K. are shifting away from on-premises environments and moving toward managed hosting services, ISG Provider Lens™ report says

LONDON--(BUSINESS WIRE)-- Enterprises in the U.K. are looking beyond public clouds and increasingly seeking services from private and hybrid cloud providers, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2024 ISG Provider Lens™ Private/Hybrid Cloud – Data Center Services report for the U.K. finds both large and midmarket companies shifting their cloud environments away from public clouds and back to private clouds or to a hybrid of both. Among the factors driving this shift are growing needs for strengthened security and compliance with changing regulations, the ISG report says.

“Service providers can assist midmarket enterprises in developing these hybrid cloud strategies,” said Anthony Drake, ISG partner, North Europe. “They offer reduced deployment costs, disaster recovery solutions and access to modern computing technologies such as serverless architecture, database as a service and DevOps practices.”

Hybrid clouds are not the only alternative open to companies who seek greater security and compliance, the ISG report says. According to the report, enterprises in the U.K. are gradually shifting their focus from on-premises environments to outsourced services such as managed hosting for data storage and business continuity purposes.

In addition to reducing the burden of operating a private data center while maintaining control over the hosted data, managed hosting provides enterprises with additional flexibility and features, such as multi-cloud connectivity, low-latency network connectivity, bare metal services, platform-agnostic operating systems and database support, the ISG report says.

Data centers in the U.K. are positioning themselves as connectivity hubs, the ISG report says. They offer access to advanced communication infrastructure such as fiber, dark fiber, internet exchange points (IXPs) and subsea cables, the ISG report says. In response to the increasing demand for high speed, this supplies U.K. enterprises with low-latency connectivity for both local and international communications, the report says.

“Large enterprises in the U.K. are looking for providers who can offer reliable uptime, secure data storage and high-performance network connectivity,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “The priorities for midsize enterprises lean toward comprehensive technical support, including 24/7 monitoring, rapid incident response and proactive maintenance that will ensure maximum uptime and availability.”

The report also examines how providers are adopting FinOps practices to optimize costs while maintaining sustainability goals.

For more insights into the private/hybrid cloud and data center services challenges that enterprises in the U.K. face, including rising energy costs and data security concerns, and ISG’s advice for addressing them, see the ISG Provider Lens™ Focal Points briefing here.

The 2024 ISG Provider Lens™ Private/Hybrid Cloud – Data Center Services report for the U.K. evaluates the capabilities of 57 providers across four quadrants: Managed Services for Large Accounts, Managed Services for Midmarket, Managed Hosting and Colocation Services.

The report names Fujitsu as a Leader in three quadrants, while Claranet, DXC Technology, Ensono, Kyndryl, Rackspace Technology and T-Systems are named as Leaders in two quadrants each. Accenture/Accenture (Navisite), Atos, Capgemini, Computacenter, Digital Realty, Equinix, Global Switch, HCLTech, Hexaware, Infosys, LTIMindtree, NTT GDC / NTT Global Data Centers, Pulsant, Redcentric, TCS, Telefonica Tech, Telehouse, Unisys and Wipro are named as Leaders in one quadrant each.

In addition, Hexaware and Tech Mahindra are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

In the area of customer experience, Green is named the global ISG CX Star Performer for 2024 among Private/Hybrid Cloud – Data Center Services partners. Green earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.

The 2024 ISG Provider Lens™ Private/Hybrid Cloud – Data Center 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, Mexico, 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.

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 AI and 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 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/20240718437970/en/

Press Contacts:

Sarah Ye, ISG

+44 7833 567868

sarah.ye@isg-one.com

Will Thoretz, ISG

+1 203 517 3119

will.thoretz@isg-one.com

Source: Information Services Group, Inc.

FAQ

Why are U.K. companies shifting towards private and hybrid cloud solutions?

U.K. companies are shifting towards private and hybrid cloud solutions due to growing needs for strengthened security and compliance with changing regulations. This trend is observed in both large and midmarket companies, as reported by the 2024 ISG Provider Lens™ report.

What benefits do managed hosting services offer to U.K. enterprises?

Managed hosting services offer U.K. enterprises reduced deployment costs, disaster recovery solutions, and access to modern computing technologies. They also provide additional flexibility, multi-cloud connectivity, low-latency network connectivity, and platform-agnostic operating systems and database support.

How are data centers in the U.K. positioning themselves?

Data centers in the U.K. are positioning themselves as connectivity hubs. They offer access to advanced communication infrastructure such as fiber, dark fiber, internet exchange points (IXPs), and subsea cables, providing U.K. enterprises with low-latency connectivity for both local and international communications.

What are the priorities for large enterprises in the U.K. regarding cloud services?

Large enterprises in the U.K. are prioritizing providers who can offer reliable uptime, secure data storage, and high-performance network connectivity for their cloud services.

How did Information Services Group (III) conduct this research on cloud services in the U.K.?

Information Services Group (III) conducted this research through their ISG Provider Lens™ study, which evaluates the capabilities of 57 providers across four quadrants: Managed Services for Large Accounts, Managed Services for Midmarket, Managed Hosting, and Colocation Services.