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ISG Providerlens™ Quadrant Report Public Cloud - Solutions & A research report Services comparing provider strengths, challenges Managed Public Cloud Services for Midmarket and competitive differentiators Nordics 2020 Quadrant Report Customized report courtesy of: November 2020 ISG Provider Lens™ Quadrant Report | November 2020 Section Name About this Report Information Services Group Inc. is solely responsible for the content of this report. ISG Provider Lens™ delivers leading-edge and actionable research studies, reports Unless otherwise cited, all content contained in this report — including illustrations, and consulting services focused on technology and service providers’ strengths and research, conclusions, assertions and positions — were developed by, and are the sole weaknesses and how they are positioned relative to their peers in the market. These property of Information Services Group Inc. reports provide influential insights accessed by our large pool of advisors who are actively advising outsourcing deals as well as large numbers of ISG enterprise clients The research and analysis presented in this report includes research from the ISG who are potential outsourcers. Provider Lens™ program, ongoing ISG Research programs, interviews with ISG advisors, briefings with services providers and analysis of publicly available market information For more information about our studies, please email [email protected], from multiple sources. The data collected for this report represents information that call +49 (0) 561-50697537, or visit ISG Provider Lens™ under ISG Provider Lens™. ISG believes to be current as of September 2020 for providers who actively participated as 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. ISG Research™ provides subscription research, advisory consulting and executive The lead author for this report is Manoj Chandra Jha. The editors is Grant Gross. The event services focused on market trends and disruptive technologies driving change research analyst is Prakash N and the data analyst is Vijayakumar Goud. The enterprise in business computing. ISG Research™ delivers guidance that helps businesses context and global overview analyst is Prakash N. The quality and consistency advisors accelerate growth and create more value. are Rajib Datta and Richard Chang. For more information about ISG Research™ subscriptions, please email [email protected], call +49 (0) 561-50697537 or visit research.isg-one.com. 2 © 2020 Information Services Group, Inc. All Rights Reserved. © 2020 Information Services Group, Inc. All rights reserved. 1 Executive Summary Reproduction of this publication in any form without prior permission is strictly prohibited. Information contained in this 3 Introduction report is based on the best available and reliable resources. 14 Managed Public Cloud Services for Midmarket Opinions expressed in this report reflect ISG’s judgment at the time of this report and are subject to change without notice. Methodology 19 ISG has no liability for omissions, errors or completeness of information in this report. ISG Research™ and ISG Provider Lens™ are trademarks of Information Services Group, Inc. ISG Provider Lens™ Quadrant Report | November 2020 Section Name Executive Summary EXECUTIVE SUMMARY Public cloud spending continues to surge in Nordic enterprises in the coming years as output, spends much more of its IT budget on research and development (R&D) than its demand for computing and Agile cloud-native technologies drive growth and enterprises’ neighboring Nordic countries. Denmark, Finland and Norway have a great focus on the ambition to expand their businesses globally. The market is driven by companies’ food and beverages and oil and gas sectors. Overall, Nordic enterprise IT spending has digital transformation initiatives and the need for more Agile IT delivery, which calls for increased, especially spending on public cloud, cloud-native and the transformation of infrastructure modernization and the use of next-generation cloud technologies such as exiting IT infrastructure. containerization, cloud-native applications, microservices, artificial intelligence (AI) and Finance, manufacturing and retail have shown a surge in public cloud services machine learning (ML). consumption: The public sector has shown positive growth in its average strategic cloud Enterprises expect that system integrators will have matured cloud services capabilities in maturity, but it continues to report low strategic and operational maturity from a public their portfolio. Public cloud demand in the Nordics is driven by an interest in productivity cloud perspective. The main factor behind the comparatively low scores has been the gains and efficiency enhancements, more available solutions, and the transformation of lack of in-house capabilities and expertise. In the private sector, financial services, with customer engagement and experiences. Software-as-a-service (SaaS) spending continues its long history of IT-driven services, leads the way. Information processing and the need to propel the market, especially with the advancements in device and data management for information classification helps it address the “what” and “where” of cloud services. In and analytics. The AI market is boosted by substantially expanding adoption as enterprise the last couple of years, the manufacturing sector has seen the largest compound annual clients strive to optimize and improve processes through AI-enabled automation. growth rate in both strategic and operational maturity. It has shown a surge in cloud adoption as IT has become a strategic necessity for business growth and manufacturing Public cloud services have become mainstream solution in the Nordic market: The processes are becoming increasingly digital. Integrating manufacturing execution systems Nordic IT market has always been one of the most progressive markets in Europe. Although with Internet of Things (IoT) technology creates the need for processing large quantities many large organizations continue to run their applications in a legacy operation model, of data while creating new possibilities for cost savings and increased efficiency. Cloud there is substantial growth over the last two years in the number of companies that are services are seen as enablers in this change and many surrounding areas, and ISG expects taking a more standardized digitization approach. This shift has increased the cloud that the overall growth in Nordic cloud maturity will continue to increase adoption with spending of enterprise clients and SMBs, across all industries, on adopting public cloud substantial pace. services. Sweden, which is well diversified in manufacturing and exports a majority of its 1 © 2020 Information Services Group, Inc. All Rights Reserved. ISG Provider Lens™ Quadrant Report | JuniNovember 2018 2020 Executive Summary System integrators and hyperscalers strategic announcement: With CXOs focusing on digitization front. This has resulted in a multi-cloud journey that can include cloud IT outsourcing engagements and, in particular, the spending and digital innovation aspects adoption, migration and transformation. Nordic clients are consuming their services from of these engagements, it is extremely important for IT service providers to become the three big public cloud providers — AWS, Microsoft Azure and Google Cloud Platform joint investment partners with Nordic enterprises in outcome-based engagements. It is (GCP) —based on the solution and multi-year strategy defined by the offices of the chief essential that providers get certified and achieve greater competencies from AWS, Azure technology officer (CTO) and the chief information officer (CIO). To address the need of and GCP. Over the last few quarters, the Nordics born, and global system integrators have Nordic enterprises and the public sector, AWS, Azure and GCP have already committed to increased their overall cloud accreditation. the Nordic market by setting up availability zones, enabling SMBs and enterprises to build cloud-native solutions. Integrated, cognitive, intuitive, AI-led cloud management platform: As many Nordic enterprises embark on a multi-cloud journey, they are seeking various ways to manage Substantial adoption of SAP HANA infrastructure services: SAP HANA cloud the multi-cloud workload and ensure that cost and governance are in place. To address infrastructure services have shown a reasonable surge. Nordic enterprise clients are the need of enterprises, IT services providers have built their own intellectual property (IP), not moving their SAP HANA workload to cloud infrastructure, due to numerous data cloud management platform (CMP), and numerous accelerators and frameworks. Most sovereignty and security concern. The pandemic has brought the attention of CXOs back of the CMPs that are either developed or offered are cloud-agnostic and a vendor-neutral to cost reduction and workload optimization. However, banking, finance and retail clients platform. They have a robust security layer overarching all the features and services have started moving SAP HANA workloads to public cloud infrastructure in a proof-of- provided. IT service providers are offering CMP as a part of bundled solution, with a very concept model. The growth in SAP HANA deployment on public cloud is subject to how the few of them selling it as a standalone product. We
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