ISG Study: European Enterprises Embrace Cloud-Native Tools

ISG

As the market matures, enterprises across Europe turn out to develop a deeper understanding of cloud-native technologies and adopt them slightly faster than companies in the U.S., according to a new research report published by global technology research and advisory firm, Information Services Group (ISG).

“As enterprises pursue cloud-native strategies, many are tapping into the strengths of different public clouds, along with on-premises and edge environments,” said Bernie Hoecker, Partner Enterprise Cloud Transformation at ISG. “This may make their architectures even more complex, but it helps them avoid technical debt or lock-in.”

Companies are becoming more familiar with both the benefits and the challenges of cloud-native technologies, stated ISG in its report. Migrating legacy applications to distributed, container-based microarchitectures in the cloud can give enterprises faster cycle times for new software and better scalability to meet fluctuating demand, along with smoother integration into DevOps software pipelines, ISG says. However, a cloud-native approach would also require new skills, new security tools and the means to track and monitor widely distributed software components.

In Europe, recent industry surveys indicate that about three-quarters of back-end developers used containers in 2021, according to the report. However, many European companies would still need assistance to scale cloud-native technologies across their IT environments. A growing number of service providers would offer container migration factories and ‘Day 2’ consulting and support to ease the transition.

Data Sovereignty Requirements

Jan Erik Aase, Partner and Global Leader, ISG Provider Lens Research
“Many European companies now require cloud-native observability tools to measure the environmental impact of their operations,” said Jan Erik Aase, Partner and Global Leader, ISG Provider Lens Research.

Cloud-native strategies in Europe would often run up against evolving data sovereignty and residency requirements that affect where data can move within distributed application architectures, stated ISG in its report. Providers are developing unique tools to address this challenge. Sustainability would also be a growing issue.

“Many European companies now require cloud-native observability tools to measure the environmental impact of their operations,” said Jan Erik Aase, Partner and Global Leader, ISG Provider Lens Research. “This makes observability an even more complex undertaking.”

The report by ISG also explores other global and European cloud-native trends, including the plateauing of demand for serverless architectures and the growing importance of edge solutions and open-source software and standards.

The 2022 ISG Provider Lens Cloud Native Services and Solutions report for Europe evaluates the capabilities of 65 providers across five quadrants: Managed Container Services, Container Platform Solutions, Hyperscaler Cloud-native Platforms, Cloud-native Observability Solutions and Cloud-native Security Platforms.