U.S. Enterprises Flock to Public Cloud During Pandemic
The ISG Provider Lens™ report reveals a surge in public cloud adoption among U.S. enterprises, driven by the COVID-19 pandemic. Companies are increasingly shifting to cloud-native transformations, utilizing container technology and microservices for enhanced flexibility. The infrastructure-as-a-service market saw a 20% year-to-date increase, with significant growth in managed public cloud services and governance, risk management, and compliance. Notable leaders in the cloud services space include Accenture, AWS, and Microsoft, while several companies were recognized as Rising Stars for their promising portfolios.
- Public cloud adoption increased significantly due to pandemic-driven demand.
- IaaS market grew nearly 20% year-to-date, reaching $17.8 billion.
- Shift towards cloud-native transformations highlights enterprise innovation.
- Growing partnerships with hyperscalers, showing market adaptation.
- Rising demand for governance, risk management, and compliance services.
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ISG Provider Lens™ report finds companies looking for the agility and flexibility of the cloud as employees continue to work from home, and events stay online
STAMFORD, Conn., Nov. 30, 2020 (GLOBE NEWSWIRE) -- Public cloud adoption has grown rapidly among U.S. enterprises during the last year, with the COVID-19 pandemic driving up demand for cloud-based services, 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™ Public Cloud – Solutions and Services Report for the U.S. finds American enterprises still embracing a work-from-home model for many employees, creating a need for applications and infrastructure based in the public cloud. In addition, the pandemic has driven most events to virtual settings and has led to a massive rise in online shopping.
“Cloud infrastructure is an ideal ecosystem for virtual events and a work-from-home model because it provides the agility and scalability required to provide a better customer and employee experience,” said Jan Erik Aase, director and global leader, ISG Provider Lens Research.
The global infrastructure-as-a-service (IaaS) market grew by 14 percent year-over-year in the third quarter, the report notes, citing recent data from the ISG Index™. Through the first nine months of 2020, IaaS was up nearly 20 percent, to
The ISG Provider Lens report also finds more U.S. enterprises are focused on cloud-native transformations, instead of the more traditional lift-and-shift model. While lift-and-shift transitions allow enterprises to move selected applications to the public cloud, it often leads to refactoring or re-architecting the workload for better performance, ultimately raising the cost of the transition. Instead, many enterprises are now moving applications to the cloud in a cloud-native way, with container technology and microservices enabling enterprises to take full advantage of the flexibility and agility the public cloud offers.
In addition, the report sees many public cloud providers partnering with hyperscalers and focusing on hyperscaler certifications to demonstrate their cloud expertise. Some service providers also are developing specialized, industry-specific transformation capabilities to cater to industry verticals.
The report also finds many enterprise customers embracing a multi-cloud approach. Each public cloud has unique features and capabilities, and some applications work better on one public cloud over another. Enterprises and service providers now understand the strengths and weaknesses of each hyperscaler, and they are moving their workloads accordingly.
In addition, the managed public cloud ecosystem has been growing as overall cloud adoption rises, the report says. Enterprises often need a helping hand because they find it difficult to manage hybrid and multi-cloud infrastructure. Rather than focusing on cloud infrastructure management, enterprises want to focus their resources to core activities and optimize costs.
The report also sees a growing demand for governance, risk management and compliance (GRC) services, as the cloud infrastructure landscape grows increasingly more complex. Some enterprises face challenges with a lack of integration among various systems as they move resources to the cloud, and they have concerns about data security. GRC providers have developed robust frameworks that focus on regulatory, legal, business and risk environments while following a secure-by-design methodology.
The 2020 ISG Provider Lens™ Public Cloud – Solutions and Services Report for the U.S. evaluates the capabilities of 49 providers across seven quadrants: Consulting and Transformational Services for Large Accounts; Consulting and Transformational Services for the Midmarket; Governance, Risk and Compliance Services; Managed Public Cloud Services for Large Accounts; Managed Public Cloud Services for the Midmarket; SAP HANA Infrastructure Services; and Hyperscale Infrastructure and Platform Services.
The report names Accenture, AWS, Capgemini, Cognizant, HCL, IBM, Microsoft, Mindtree, Rackspace Technology, TCS, Tech Mahindra, Unisys and Wipro as leaders in two quadrants. Deloitte, EY, Google, Infosys, KPMG, LTI, PwC and UST Global are named leaders in one quadrant.
In addition, Accenture, Google, Infosys, LTI and NTT DATA were named Rising Stars—companies with “promising portfolios” and “high future potential” by ISG’s definition—in one quadrant each.
Customized versions of the report are available from AWS, Hexaware, Mindtree, Tech Mahindra and TO THE NEW.
The 2020 ISG Provider Lens™ Public Cloud – Solutions and Services Report for the U.S. 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, Switzerland, 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.
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.
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.
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