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Enterprises Worldwide Increasing Public Cloud Spending

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ISG Provider Lens report finds big role for providers in helping customers manage complex public cloud environments

Enterprises across the globe are rapidly increasing their spending on cloud technologies and migrating many of their in-house cloud workloads to the public cloud, according to a new report published today by Information Services Group, a leading global technology research and advisory firm.

The 2019 ISG Provider LensPublic Cloud — Solutions & Service Partners Global Report finds the global IaaS and SaaS markets grew by 14 percent year over year in the second quarter of 2019. Many enterprises are adopting public cloud services as a way to help them analyze a growing volume of customer and other data, the report says.

Service providers focused on helping customers manage the public cloud have a major role to play because of the vast and complex cloud ecosystem, the report adds.

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“The top priority of many enterprises is to control and optimize cloud expenses,” said Jan Erik Aase, director and global leader, ISG Provider Lens Research. “Service providers are helping their enterprise customers manage costs because they often have more experience managing cloud infrastructure.”

The report finds different priorities for enterprises using the public cloud, depending on their locations. European enterprises are prioritizing data center location, managed services support and contract flexibility, while U.S. enterprises are focused on the portfolio of services offered.

European cloud customers are more concerned about data protection laws that mandate them to keep data within a country’s boundaries, while U.S. customers — many with more extensive cloud experience than their European counterparts — are able to select a public cloud vendor based on the breadth of features.

Many enterprises are embracing a multi-cloud strategy, even as they see challenges when managing multiple clouds, the report adds. Customers are adopting various tools to manage multiple clouds, but current products are not yet mature, the report says.

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The global cloud market is also seeing major changes in the managed services partner ecosystem, the report says. Some smaller service providers are gaining traction with their unique offerings focused on public cloud managed services for multi-cloud environments. Several smaller providers are being acquired by large system integrators as a way to either eliminate the competition or to acquire a niche capability or client segment.

The report says service providers are offering cloud management platforms (CMPs) to differentiate themselves in the market and help clients avoid “vendor lock-in.” CMPs offer a complete tool set for cloud-native development, application programming interface (API) management and integration, DevOps, integrated platform as a service (iPaaS) and container management.

The 2019 ISG Provider Lens Public Cloud — Solutions & Service Partners Global Report evaluates the capabilities of 43 providers across four quadrants: Public Cloud Transformation Services, Managed Public Cloud Services, aPaas – Application Development Platforms as a Service, and IaaS – (Hyperscale) Infrastructure as a Service.

The report names Accenture, AWS, Capgemini, Cognizant, DXC Technology, Google, HCL, Microsoft, TCS and Wipro as leaders in two quadrants. IBM and Rackspace are named as leaders in one.

A customized version of the report is available from Mindtree, which was recognized by ISG as a “Rising Star” in Public Cloud Transformation Services.

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