ISG Research: Enterprises Increasingly Moving Workloads to Public Cloud

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Enterprises, supported by a growing ecosystem of cloud partners and providers, are rapidly moving workloads to the public cloud as they seek greater agility and scalability in their increasingly digitally driven operations, according to a new research report from Information Services Group, a global technology research and advisory firm.

Enterprises would see the public cloud as a means for leveraging agile development and deployment of software to build competitive advantage. They are turning to cloud partners to help them create highly automated and orchestrated DevOps environments that would allow them to develop software more rapidly and deploy it more frequently. Cloud services providers are responding with ‘infrastructure as a code’ services that would enable more efficient infrastructure provisioning and configuration management.

The latest ISG Provider Lens Quadrant report, focusing on cloud services, also notes that public cloud providers have evolved from offering commodity compute and storage services to providing more advanced services and a plethora of new features.

At the same time, a host of new consultants and implementation partners has sprung up to support the shift to public cloud and hybrid business models. These cloud services providers are forming “robust” partner ecosystems with large, hyperscale public cloud providers such as Amazon Web Services (AWS Cloud), Google Cloud Platform, IBM Cloud and Microsoft Azure to help enterprises migrate their existing applications to the cloud and adopt scalable architectures that will accommodate future growth.

SAP in the Cloud

ISG notes that providers are making significant investments to support SAP-related services on the public cloud infrastructure, as the market moves away from commodity services to ‘as-a-service’ models. This shift is fueling an increase in public cloud alliances, certifications, acquisitions and partnerships.

ISG projects a steady and significant increase in public cloud and hybrid infrastructure use through 2020, assuming public cloud offerings continue to become qualified for enterprise workloads. According to previously published ISG research, approximately 35 percent of enterprise workloads will be either on a hybrid cloud (public plus private/on premises) or completely migrated to public cloud environments by 2020. That number could reach 50 percent in select organizations within the next few years, ISG observes in its latest report.

“The surge in public cloud adoption reflects a shift in preconceptions around security and reliability, and CIOs now have a mandate to improve agility and contain costs using public cloud services,” said Charlie Burns, ISG lead analyst and one of the authors of the report. “Many enterprises now have a cloud-first approach and plan to gradually withdraw from running on-premises IT environments wherever it makes business and technical sense. With an increasing focus on the ‘transform’ aspect of IT operations rather than the ‘run’ aspect, enterprises are treating hybrid as the new normal.”

The ISG Cloud Services Report

Beyond offering these insights, the ISG Provider Lens Cloud Services Quadrant Report evaluates 45 cloud services providers serving the U.S. market across six quadrants: Public Cloud Infrastructure Consulting and Implementation Services; Public Cloud Infrastructure Managed Services; Public Cloud Brokerage Services; SAP Services; Infrastructure-as-a-Service (IaaS) and Unified-Communications-as a-Service (UCaaS).

In this highly diverse and fragmented market, only three firms – Accenture, Cognizant and Wipro – were named leaders in four of the six quadrants, the most of any of the providers.

The ISG Provider Lens Quadrant report series draws insights on service provider capabilities from focused surveys, briefings, interviews with providers, input from ISG advisors, ISG benchmarking data, and data drawn from the ISG Contracts Knowledgebase and ISG Engagement Database. 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.