Press Release

U.K. Enterprises Looking to Multicloud Environments to Meet Customer Needs

Company Release - 1/3/2020 5:00 AM ET

ISG Provider Lens™ report finds about 70 percent of U.K. enterprises using more than one cloud provider

LONDON, Jan. 3, 2020 /PRNewswire/ -- Enterprises in the U.K. are realizing the power of cloud services and solutions to address customer needs, and many are using more than one cloud vendor to meet their business requirements, 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.K. Report finds about 70 percent of U.K. enterprises are focused on a multicloud strategy, with small and medium-sized businesses increasingly adopting cloud-native solutions.

"Cloud adoption in the U.K. is seen to be more cost effective, scalable, secure and flexible than legacy alternatives," said Barry Matthews, partner and head of ISG U.K. "Hyperscale cloud providers are investing and innovating to ensure their U.K. customers continue their cloud journeys to stay competitive in the European and global markets."

The report sees U.K. enterprises embracing multicloud environments because each cloud provider has specific strengths related to vertical solutions, prices and other factors. Enterprises want to test how each cloud hyperscaler fits with their needs as they look for the right partner and not just a commodity service provider.

While U.K. businesses are interested in multicloud environments, the report sees some barriers to this setup, with orchestration a significant challenge. Customers are increasingly adopting various tools to manage the complexity of a multicloud setup, but many of the tools still lack maturity.

In addition, customers see potential barriers with vendor lock-in by the public cloud provider and a lack of interoperability between multiple public cloud providers.

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

In addition, the report finds a growing Infrastructure-as-a-Service market in the U.K. Some U.K. businesses have been able to eliminate their depreciated hardware and move completely to the cloud. This is less of an option for larger organizations with heavy infrastructure investments, with many of them expected to continue maintaining hybrid IT and multicloud environments. However, with the need for organizations to enhance their data security, many enterprises have started to migrate their critical workloads to public cloud platforms.

The 2019 ISG Provider Lens Public Cloud — Solutions & Service Partners U.K. Report evaluates the capabilities of 54 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 and Infosys as leaders in five quadrants, and Capgemini, Fujitsu, HCL, TCS and Wipro as leaders in four. DXC Technology is named as a leader in three quadrants, while Atos, AWS, Google, Microsoft and Rackspace are named as leaders in two. Claranet, Cloudreach and Cognizant are leaders in one quadrant.

A customized version of the report is available from Claranet.

The 2019 ISG Provider Lens Public Cloud —Solutions & Service Partners U.K. 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 www.isg-one.com.

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