Growing Adoption of Cloud Gives Microsoft Partners a Foothold with German Enterprises

Cloud adoption has been accelerated due to the pandemic and Azure cloud hosting services from Microsoft have benefitted in the German market, according to a report published by global technology research and advisory firm Information Services Group (ISG).

While German enterprises are typically slow to adopt cloud computing, they are growing rather interested, specifically with Microsoft Azure. According to this new report from Information Services Group, German enterprises are becoming highly interested in migrating applications to Microsoft Azure cloud services.

As the offerings and the approaches have matured, German companies are turning to the cloud to suit their needs. The pandemic has helped many companies make the move to Microsoft Azure cloud, which is chosen more often than other cloud services by German companies due to the enterprise focus and the capabilities of the platform, specifically for IoT and analytics.

Virtualized Operations Become a Big Need

COVID-19 put virtualized operations in the spotlight and many German companies have needed to adopt cloud technology due to the pandemic. Midsize companies in Germany are moving workloads and data to SaaS platforms on the Azure cloud with some even deciding to take the SaaS-only approach.

The growing interest in cloud hosting offers many opportunities for Microsoft as so many companies are choosing Azure over other providers. As this market explores new ways to handle the enterprise IT environment, Microsoft expects to remain as a big player with the deep resources they provide in the market.

One of the main reasons more German companies haven’t adopted cloud technology is the compliance challenge. The complex regulations for business-critical applications, such as SAP, have made it difficult for some German companies to adopt cloud technology. The migration of SAP to the cloud is one of the most important and most common trends for large and mid-tier German enterprises for the past year. About half of German SAP users don’t believe they are very far along when it comes to their cloud migrations, however. SAP migration onto Azure is an important task for Microsoft partners and expects to be in the spotlight in upcoming years.

Many service providers have started to offer SAP on Azure in Germany as a vertical offering, which has helped attract some smaller clients with specific needs. The 2021 ISG Prover Lents Microsoft Ecosystem report for Germany looked at the capabilities of 61 different providers across the following quadrants:

  • Managed Services for Azure
  • Large Accounts, Managed Services for Azure
  • Midmarket, Office 365 & Modern Workplace
  • Large Accounts, Office 365 & Modern Workplace
  • Midmarket, Dynamic 365
  • SAP on Azure

The report found that Arvato Systems and Devoteam|Alegri were the leaders in five quadrants with Accenture as the leader in four quadrants. All for One Group, CANCOM, Atos, DXC Technology, T-Systems, Capgemini, and Telkom Deutschland were leaders in three quadrants, while AppSphere, Bechtle, SoftwareONE, and Axians were leaders in two quadrants. NTT Data, KUMAVISION, TSC, Wipro, DATA One, infoWAN, Insight, Infosys, Cognizant, Allgeier, Computacenter, glueckkanja-gab, and Scheer Gmbh were leaders in one quadrant.

A few other providers were given the mark of a high future potential and promising profile by the ISG report in one quadrant and this list includes Claranet, gluekkanga-gab, Insight, and Communardo.