U.S. Public Sector Grows Up Fast With Cloud Transformation
ISG Provider Lens report highlights a major shift among U.S. state, local, and educational organizations towards cloud computing, prompted by COVID-19 disruptions. Many institutions are migrating to cloud-first strategies to enhance services while managing shrinking budgets and legacy IT issues. The report anticipates a continuous wave of cloud adoption through 2025. Challenges include a lack of expertise and concerns over cloud security. Hyperscale cloud providers are tailoring solutions for the public sector, driving demand for managed public cloud services.
- Strong demand for cloud services among state and local governments.
- The public sector is moving towards cloud-first strategies to optimize services.
- ISG forecasts continued cloud adoption through 2025.
- Public sector institutions are facing IT staffing challenges and budget constraints.
- Many organizations are still inexperienced in cloud budgeting and procurement.
- Concerns over cloud security remain prevalent among public institutions.
State, local and educational organizations quickly adopt cloud to maintain services under post-COVID realities, ISG Provider Lens™ report says
The 2022 ISG Provider Lens™ Public Cloud — Solutions and Services report for the
“The public sector in the
The COVID-19 pandemic was the trigger for much of this change, the report says. The shift to working from home and the wave of resignations that came with the disruption of work affected the public sector more than most. Falling tax and licensing revenue during the pandemic made the situation worse. Then, in late 2021, special funding from the federal government made rapid digital transformation a mandate at organizations that had not modernized IT in decades.
Because they are far behind most private enterprises in using the cloud,
Hyperscale cloud operators, along with their service provider partners, are developing offerings tuned specifically for the public sector, the report says. Agencies adopting cloud services typically engage with more than one platform, which can make cloud operations even more complex. These organizations commonly engage with managed public cloud providers to make their cloud environments function reliably and efficiently. ISG expects demand for managed public cloud services to keep accelerating as public sector cloud environments mature.
“Consulting and managed services are making public sector cloud migration possible,” said
The report also examines other public cloud trends in the
For more insights into the cloud challenges faced by
The 2022 ISG Provider Lens™ Public Cloud — Solutions and Services report for the
The report names IBM as a Leader in three quadrants. It names Accenture, AWS, Deloitte, Infosys, Microsoft, Rackspace Technology and Unisys as Leaders in two quadrants each and Kyndryl, SAP, Tech Mahindra and Zensar as Leaders in one quadrant each.
In addition, CGI is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant.
A customized version of the report is available from Unisys.
The 2022 ISG Provider Lens™ Public Cloud — Solutions and Services report for the
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
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.
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