Press Release

U.S. Enterprises Looking for Provider Support to Manage Multi-Cloud Environments

ISG Provider Lens™ report finds U.S. spending on IaaS, SaaS up significantly in 2019

Company Release - 11/20/2019 9:00 AM ET

STAMFORD, Conn., Nov. 20, 2019 /PRNewswire/ -- U.S. enterprises focused on digital innovation are rapidly adopting public cloud services, although many are looking for service provider partners that can help them manage their cloud spending, according to a new report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2019 ISG Provider LensPublic Cloud — Solutions & Service Partners U.S. Report finds IaaS spending in the Americas was up 29 percent in the second quarter of 2018 versus the prior year, while SaaS spending was up 12 percent in the same timeframe.

Still, many U.S. enterprises want to control and optimize cloud expenses, with many finding it difficult to manage spending because of the large and complex cloud ecosystem, the report says. Service providers are playing an important role by helping U.S. enterprises control their cloud spending, it adds.

"Service providers are helping their enterprise customers manage costs because they often have more experience managing multi-cloud infrastructure," said Jan Erik Aase, director and global leader, ISG Provider Lens Research. "They also provide enterprises with a long-term option by creating a roadmap for transitioning to the public cloud."

Many U.S. enterprises are also embracing a multi-cloud strategy, even as they see challenges when managing multiple clouds, the report adds. U.S. enterprises have been dissatisfied with vendor lock-in practices from public cloud providers, with concerns about high costs and a lack of room for negotiation. Many enterprises see a lack of interoperability between public cloud providers, the report says.

Still, U.S. enterprises are seeing the market become more competitive as they have begun to use more than one hyperscaler and are negotiating prices, according to the report.

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. ISG notes that several smaller providers have been acquired by large system integrators to either eliminate competition or acquire a niche capability or client segment.

The report also sees rapid adoption of container technology in the U.S. market, with AWS and Azure adding more features related to containers. Service providers have been hiring cloud-native talent in recent years and have started using containerization as a strategy for modernizing or rearchitecting applications, the report says.

The 2019 ISG Provider Lens Public Cloud — Solutions & Service Partners U.S. Report evaluates the capabilities of 60 providers across seven quadrants: Public Cloud Transformation Services, Managed Public Cloud Services, Managed Public Cloud Services for AWS, Managed Public Cloud Services for Azure, Managed Public Cloud Services for GCP, aPaas – Application Development Platforms as a Service, and IaaS – (Hyperscale) Infrastructure as a Service.

The report names Accenture as a leader in five quadrants, and Capgemini, HCL, Rackspace, TCS and Wipro as leaders in four. Cognizant and Infosys are named leaders in three quadrants, while AWS, Fujitsu, Google and Microsoft are named leaders in two. DXC Technology and IBM are each named leaders in one quadrant.

A customized version of the report is available from Mindtree, named a "Rising Star" by ISG in Public Cloud Transformation Services and Managed Public Cloud Services.

The 2019 ISG Provider Lens Public Cloud — Solutions & Service Partners U.S. Report is available to ISG Insights™ 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, the U.K., the Nordics and Brazil, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

The series is a complement to the ISG Provider Lens Archetype reports, which offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.

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 70 of the top 100 enterprises in the world, 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

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