ISG Study: Cloud Infrastructure Management Increasingly Being Outsourced

Enterprises globally do increasingly look to outsourcing providers to manage their private and hybrid cloud environments, according to a recent study by ISG (Information Services Group), a global technology research and advisory firm.

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During the COVID-19 epidemic, there has been a surge in global outsourcing interest for cloud infrastructure management. According to the most recent ISG Index, Infrastructure-as-a-Service (IaaS) expenditure reached a new high of $8.2 billion in the second quarter of 2021, up 41% year over year and 15% quarter over quarter.

Overall, worldwide demand for IT and business services hit a new high of $19.1 billion in Q2 for the third quarter in a row, as businesses accelerate their digital transformations and migrate to the cloud.

“Enterprises worldwide have realized that outsourcing their cloud infrastructure management is a great way to realign their IT systems with business objectives in the most cost-effective manner,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research.

While many firms halted outsourcing efforts at the onset of the pandemic, others aim to employ outsourcing services for the first time in 2021, according to this ‘ISG Provider Lens’ study.

Hyperconverged, Cloud Management Platform

Photo Jan Erik Aase, partner and global leader, ISG Provider Lens Research
“Enterprises worldwide have realized that outsourcing their cloud infrastructure management is a great way to realign their IT systems with business objectives in the most cost-effective manner,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research.

The hyperconverged infrastructure (HCI) industry is expected to develop steadily globally, according to the research. Enterprise digitization involves bringing the physical and digital worlds closer together and removing the huge abstraction layer between hardware and software. HCI is popular among businesses because of its high reliability, capacity, and scalability, as well as its easy monitoring and administration capabilities. HCI would also improve disaster recovery (DR) and provide self-contained computing capabilities.

The cloud management platform (CMP) industry has also evolved substantially in recent years, according to the ISG study. Many of the administration activities that were previously handled through the CMP may now be completed quickly and efficiently through the interface of a single cloud provider. CMP, which was once a critical feature, has now become a commodity, and hybrid cloud management companies are increasing their functionality to provide users with the most comprehensive set of capabilities.

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