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ISG Providerlens™ Quadrant Report

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ISG Providerlens™ Quadrant Report Private/Hybrid Cloud - Data A research report comparing provider Center Services & Solutions strengths, challenges Brazil 2019 and competitive differentiators Quadrant Report Customized report courtesy of: July 2019 ISG Provider Lens™ Quadrant Report | July 2019 Section Name About this Report Information Services Group Inc. is solely responsible for the content of this report. Un- ISG Provider Lens™ delivers leading-edge and actionable research studies, reports less otherwise cited, all content, including illustrations, research, conclusions, assertions and consulting services focused on technology and service providers’ strengths and and positions contained in this report were developed by, and are the sole property of weaknesses and how they are positioned relative to their peers in the market. These Information Services Group Inc. reports provide influential insights accessed by our large pool of advisors who are The research and analysis presented in this report include research from the ISG actively advising outsourcing deals as well as large numbers of ISG enterprise clients Provider Lens™ program, ongoing ISG Research programs, interviews with ISG advisors, who are potential outsourcers. briefings with services providers and analysis of publicly available market information from multiple sources. The data collected for this report represents information that For more information about our studies, please email [email protected], ISG believes to be current as of May 2019, for providers who actively participated as call +49 (0) 561-50697537, or visit ISG Provider Lens™ under ISG Provider Lens™. well as for providers who did not. ISG recognizes that many mergers and acquisitions have taken place since that time, but those changes are not reflected in this report. All revenue references are in U.S. dollars ($US) unless noted. The lead authors for this report are Pedro Luís Bicudo Maschio and Shashank Rajmane. The editor is Jan Erik Aase. The research analyst is Abhilash C Ramadas and the data ISG Research™ provides subscription research, advisory consulting and executive analyst is Vijayakumar Goud. event services focused on market trends and disruptive technologies driving change in business computing. ISG Research™ delivers guidance that helps businesses accelerate growth and create more value. For more information about ISG Research™ subscriptions, please email [email protected], call +49 (0) 561-50697537 or visit research.isg-one.com. 2 © 2019 Information Services Group, Inc. All Rights Reserved. 1 Executive Summary 4 Introduction © 2019 Information Services Group, Inc. All rights reserved. 12 Managed Services for Large Accounts Reproduction of this publication in any form without prior 27 Managed Services for Midmarket permission is strictly prohibited. Information contained in this report is based on the best available and reliable resources. 39 Managed Hosting Opinions expressed in this report reflect ISG’s judgment at the 47 Managed Containers as a Service (CaaS) time of this report and are subject to change without notice. ISG has no liability for omissions, errors or completeness of 56 Managed Security Services information in this report. ISG Research™ and ISG Provider Lens™ are trademarks of Information Services Group, Inc. 66 Colocation Services 72 Methodology ISG Provider Lens™ Quadrant Report | July 2019 Section Name Executive Summary ExecutiveEXECUTIVE Summary SUMMARY Managed Services Trends Over the past year, business enterprises have been witnessing a growing shift from pushing their sales through new partnerships. These newcomers, however, are not able traditional data center outsourcing to hybrid cloud data centers as the de facto standard to comprehend the complexities of large enterprises. The Managed Services for Large for enterprise infrastructure. Most have at least two service providers to balance the Enterprises quadrant has only seen six providers from the midmarket in the recent years. workload in data centers and cloud. Some traditional players have stopped selling data The client midmarket continues to grow at a faster pace than the large enterprise center hosting, even though they continue to manage the facilities. The culmination of the segment. For a midmarket business, the shift from an in-house data center to the traditional outsourcing era does not mean the end of data centers, as providers are strongly cloud involves tremendous effort and high risk. Companies in this segment are quick demonstrating a growing demand in this space. to recognize the value of a managed service provider to drive transformation. They are One particular managed service provider reported a record revenue growth of 80 percent in attracting traditional service providers, shifting their focus away from large enterprise a year. It may not be the largest data center provider, but its growth indicates the impact of clients. For traditional providers, reorganizing the sales channel and adapting to the cloud adoption on the services market. Most large service providers face growth challenges midmarket are major challenges. In the Managed Services for Midmarket quadrant, there but have reported a gradual shift from traditional services to the cloud model. They want to are only four providers that have repositioned themselves in this market. reposition themselves as digital service providers, using “cloud” as a keyword in every white paper or pitch deck. Managed Hosting Consolidation Trend Service providers have also reported that large enterprise clients are becoming less Managed hosting is undergoing consolidation. The hosting business is diminishing in resistant to cloud adoption. Even large and traditional Brazilian banks are embracing hybrid importance, giving up space to private and hybrid cloud. cloud, with new workloads being developed to run on the model. These institutions still rely We have identified at least three players that have stopped offering hosting services this on mainframes to run their core accounting system. year. Most hosting providers are focused on maintaining their clientele, but they are The managed services market is expanding with the emergence of new competitors from not updating their offerings. We have identified only two exceptions to this trend. These infrastructure as a service (IaaS) partnership programs. AWS, Azure, Google and IBM are service providers have an opportunity to capture those clients that will be left behind. 1 © 2019 Information Services Group, Inc. All Rights Reserved. ISG Provider Lens™ Quadrant Report | JuniJuly 20192018 Executive Summary Managed Container As A Service Emerging Trend When enterprises started migrating workloads to the cloud, they faced the challenge been declining after reaching an all-time high in 2014. In 2018, it registered a 19 percent of porting legacy applications. Concurrently, new applications that were developed for drop in reported incidents compared to the previous year. Although the Brazilian trend is one cloud could not run on another. Service providers realized they had a problem. positive, its relative position among other nations is poor. The Global Cybersecurity Index Some companies started using Docker. Google was working on Kubernetes, while Red (GCI) measures the commitment of countries toward cybersecurity. CGI 2018 rated the Hat was creating OpenShift. At the same time, the industry was gathering around the U.K. as the cyber-conscientious country, followed by the U.S. On the other hand, Brazil was Cloud Foundry foundation. Cloud Foundry and OpenShift are platforms for developing ranked 70th out of 175 countries. applications in containers that can be deployed on any cloud. These innovations and Complexities in security services are increasing. Traditional security systems use firewalls changes took place over just four years. to protect servers and databases. With the increased access via mobile devices, end-point For this study, ISG has qualified 11 service providers that are fully capable of deploying security is needed to protect application servers and databases. Identity management and managing containers in complex environments. This market is rapidly gaining traction (IdM), a process of authorizing and revoking access rights, is now leveraging artificial with many clients showing interest, providers sending proposals and negotiations taking intelligence (AI) and machine learning (ML) to identify behaviors and usage context to place. However, the number of containers in production is relatively small. We expect the revoke or grant access. The integration of AI/ML capabilities in IdM can also help validate market to see modest growth this year before entering an accelerating phase in 2020. the user’s location for authorizing access. Data protection and data loss prevention (DLP) practices have been on the rise due to stricter initiatives such as LGPD, the Brazilian MANAGED SECURITY SERVICES TRENDS regulation that is similar to the European Union’s GDPR (General Data Protection In this era of digitization, criminals are migrating to the virtual world. Cybercriminal Regulation). Focus is now being shifted from access protection to data protection. organizations have emerged. A report published by McAfee has estimated that the global Only a few service providers cover the scope of security services. Enterprise clients may cost of cybercrime reached $600 billion in 2018. CERT.br, the computer emergency need to hire multiple providers to meet all their requirements. response team in Brazil, reported that the number
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