ISG: Enterprises in the U.S. Increasingly Embracing Multicloud Environments

Enterprises in the United States are rapidly adopting a multicloud operating model, and cloud service providers are assisting them in selecting the best clouds for the proper workloads. It’s the outcome of ISG’s latest report named 2021 ISG Provider Lens Public Cloud – Services & Solutions Report for the U.S.

Enterprises are also searching for help to run their multicloud settings as efficiently and effectively as possible, according to the survey, especially given the expanding complexity of such setups. Enterprises nowadays are running on various clouds that must be networked, integrated, and managed, and they are seeking assistance from service providers.

“Enterprises have recognized that moving to the cloud is beneficial to their businesses,” said Bernie Hoecker, partner and global leader of ISG’s enterprise cloud transformation business. “They are increasingly willing to approach managed services providers to help them move to the cloud in the right way and choose the right cloud for a specific workload.”

Demand for cloud-based services is surging in the Americas region, the 3Q21 ISG Index found. Annual contract value (ACV) for as-a-service solutions soared 51 percent in the third quarter, to a record $6.9 billion, the fastest growth rate for this segment since ISG began tracking it in 2014.

Cloud Provider Services

Photo Bernie Hoecker, partner and global leader of ISG’s enterprise cloud transformation business
“Enterprises have recognized that moving to the cloud is beneficial to their businesses,” said Bernie Hoecker, partner and global leader of ISG’s enterprise cloud transformation business.

Enterprises may use a variety of services from cloud providers to assist them with their public cloud adoption. It comprises consulting services to develop application transformation plans and roadmaps that determine if a workload should be lifted and shifted or rearchitected or re-platformed to increase performance and save operational costs.

According to the survey, cloud providers are increasingly entering into value-based agreements in which the advantages are shared between the enterprise and the provider. They’re also using AI and machine learning platforms and technologies to automate cloud operations. The report notes that many service providers have entered into strategic relationships with public cloud infrastructure providers such as AWS, Microsoft Azure and Google Cloud Platform. Both sides are working closely together to co-develop cloud offerings and have a joint go-to-market strategy.

Security measures are being improved and strengthened by providers and hyperscalers to help enterprises improve customer experience in a highly secure cloud environment. They’re also discussing best practices for creating cloud solutions that will allow for speedier migrations, more efficient cloud resource management, and more adoption of next-generation technologies.

FinOps

Meanwhile, as they employ cloud resources in a dynamic and complicated manner, many organizations are turning to cloud financial operations, or FinOps, providers to help them track cloud spending, according to the ISG research. FinOps services have been increasingly popular in recent years as cloud use has increased.

FinOps can help organizations increase the value of their cloud resources by bringing together technology, business, and finance professionals with a new set of processes that help them monitor and track their cloud resources more efficiently.

Due to a dearth of competent experts in the industry, several cloud service providers are also investing in upskilling their personnel in the United States, according to the ISG survey. To train and certify their workers in various cloud technologies, service providers are collaborating with hyperscalers and third-party training institutes.

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