U.S. Firms Tap AWS Ecosystem to Boost Competitiveness

Rhea-AI Summary

The 2024 ISG Provider Lens™ AWS Ecosystem Partners report for the U.S. highlights growing adoption of cloud services across multiple industries, expanding the market for AWS and its partners. U.S. enterprises are strategically adopting cloud services for specific goals like establishing DevOps frameworks, with a focus on cost, security, and resilience.

Key trends include:

• Increased demand for cloud migration and post-migration services
• Combining AI with analytics for improved decision-making
• Generative AI driving cloud computing and storage use
• AWS emerging as a preferred platform for SAP workloads
• Growing popularity of hybrid and multi-cloud strategies
• Increasing focus on cloud sustainability

The report evaluates 49 providers across four quadrants, naming several companies as Leaders in various categories. Persistent Systems is recognized as the global ISG CX Star Performer for 2024 among AWS ecosystem providers.

Positive

• Increasing adoption of cloud services across multiple U.S. industries
• Growing demand for cloud migration and post-migration services
• Rising use of AI and analytics for improved decision-making and forecasting
• Generative AI driving increased cloud computing and storage use
• AWS emerging as a preferred platform for SAP workloads
• Recognition of Persistent Systems as global ISG CX Star Performer for 2024

Negative

• None.

Insights

Technology Analyst

The growing adoption of AWS services in the U.S. marks a significant shift in enterprise IT strategies. Companies are leveraging AWS not just for cost savings, but for strategic advantages in areas like DevOps, AI/ML and SAP workloads. This trend is likely to benefit AWS and its ecosystem partners, potentially driving up their revenues and market share.

The focus on GenAI is particularly noteworthy. As businesses, especially in retail and financial services, invest in GenAI applications, we can expect increased demand for AWS's scalable computing and storage resources. This could lead to higher cloud spending and potentially boost AWS's position in the competitive cloud market.

The report's highlighting of post-migration services and outsourced cloud management suggests a maturing cloud market. This shift towards more sophisticated cloud usage could benefit specialized service providers and consultancies in the AWS ecosystem, potentially creating new revenue streams and business models.

Market Research Analyst

The ISG Provider Lens™ report offers valuable insights into the competitive landscape of AWS ecosystem partners. The identification of multiple "Leaders" across various quadrants suggests a highly competitive market with several strong players. This competition is likely to drive innovation and potentially lead to more competitive pricing for enterprise customers.

Notable is the strong performance of Indian IT services companies like TCS, Infosys and Wipro, named as Leaders in all four quadrants. This indicates their growing influence in the U.S. cloud services market and could potentially impact the market dynamics and pricing strategies of U.S.-based providers.

The recognition of "Rising Stars" like Genpact, Kyndryl and Persistent Systems in various quadrants suggests an evolving market with new players gaining traction. Investors should watch these companies for potential growth opportunities. Persistent Systems' recognition as the global ISG CX Star Performer is particularly noteworthy, as customer satisfaction can be a key differentiator in this competitive market.

Demand for flexible, scalable resources for GenAI helps drive strategic adoption of cloud services, ISG Provider Lens™ report says

STAMFORD, Conn.--(BUSINESS WIRE)-- U.S. adoption of cloud services continues to grow and change in multiple industries, expanding the market for services from AWS and its ecosystem partners, 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™ AWS Ecosystem Partners report for the U.S. finds companies are turning to AWS for secure, scalable cloud-based infrastructure they can use to become more agile. Seeking long-term competitiveness, the firms are using the cloud in new ways to innovate and enhance operations.

“U.S. enterprises are adopting cloud services strategically, launching initiatives with specific goals, such as establishing DevOps frameworks,” said Bernie Hoecker, partner, Enterprise Cloud Transformation leader, ISG. “Cost, security and resilience are becoming necessities.”

Companies are shifting more on-premises infrastructure to AWS, driving up demand for cloud migration services in the U.S., the report says. To maximize the value of their AWS investments, firms are also seeking post-migration services, including cost optimization, performance tuning and reviews of cloud architecture. It is becoming more common for enterprises to outsource cloud infrastructure management and operations.

U.S. enterprises are combining AI with analytics for improved decision-making, forecasting and customer experience, taking advantage of core benefits of cloud infrastructure, ISG says. Many are investing in real-time analytics to meet a growing need for quick decisions. Custom AI and ML models designed for specific business objectives, such as anticipating retail store demand and personalizing shopping experiences, give companies a competitive edge.

Generative AI (GenAI) is becoming a major driver of cloud computing and storage use in the U.S., ISG says. This is especially true in the country’s massive retail sector and banking, financial services and insurance industries, which rely on positive customer experiences for success. AWS and its provider partners are devoting significant resources to supporting GenAI with scalable and elastic cloud resources.

“GenAI is opening up new possibilities in many industries,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “The AWS ecosystem is emerging as a key enabler for GenAI applications.”

AWS is also a preferred platform for running SAP workloads, with many U.S. enterprises turning to AWS and its partners for SAP S/4HANA transformations, the report says. The high-performance computing, scalable storage and security features of AWS have made it especially attractive to large enterprises migrating complex SAP landscapes to S/4HANA.

The report also explores other trends affecting the AWS ecosystem in the U.S., including the growing popularity of hybrid and multi-cloud strategies and an increasing focus on cloud sustainability.

For more insights into the cloud challenges facing U.S. enterprises, including how to comply with a growing number of regulations and take advantage of new technologies on the horizon, plus ISG’s advice for addressing these issues, see the ISG Provider Lens™ Focal Points briefing here.

The 2024 ISG Provider Lens™ AWS Ecosystem Partners report for the U.S. evaluates the capabilities of 49 providers across four quadrants: AWS Professional Services, AWS Managed Services, AWS Data Analytics, AI and ML and AWS SAP Workloads.

The report names Accenture, Capgemini, Cognizant, Deloitte, HCLTech, Infosys, LTIMindtree, Rackspace Technology, TCS and Wipro as Leaders in all four quadrants. It names DXC Technology, PwC and Tech Mahindra as Leaders in three quadrants each. Hexaware and IBM are named as Leaders in two quadrants each, and Genpact, Kyndryl and Persistent Systems are named as Leaders in one quadrant each.

In addition, Genpact, Kyndryl, Persistent Systems, PwC, Quantiphi 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, Persistent Systems is named the global ISG CX Star Performer for 2024 among AWS ecosystem providers. Persistent Systems 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.

Customized versions of the report are available from DXC Technology, Persistent Systems, and Rackspace Technology.

The 2024 ISG Provider Lens™ AWS Ecosystem Partners 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, 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, 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/20241007463894/en/

Press:

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 are the key trends in AWS ecosystem adoption in the U.S. according to the ISG report?

Key trends include strategic adoption of cloud services, increased demand for migration services, combining AI with analytics, Generative AI driving cloud use, AWS as a preferred platform for SAP workloads, growing popularity of hybrid and multi-cloud strategies, and focus on cloud sustainability.

How is Generative AI impacting cloud adoption in the U.S., as per the ISG Provider Lens™ report?

Generative AI is becoming a major driver of cloud computing and storage use in the U.S., especially in retail and financial services industries. AWS and its partners are dedicating significant resources to support GenAI with scalable and elastic cloud resources.

Which companies were named Leaders in all four quadrants of the 2024 ISG Provider Lens™ AWS Ecosystem Partners report for the U.S.?

Accenture, Capgemini, Cognizant, Deloitte, HCLTech, Infosys, LTIMindtree, Rackspace Technology, TCS, and Wipro were named Leaders in all four quadrants of the report.

How is the adoption of AWS impacting Information Services Group (III) stock performance?

The report doesn't directly comment on ISG (III) stock performance. However, as a technology research and advisory firm, ISG's insights into growing AWS ecosystem adoption could potentially influence investor perceptions of the company's market expertise and relevance.