ISG Providerlens™ Quadrant Report

Microsoft Ecosystem A research report 2021 comparing provider strengths, challenges Managed Services for Azure and competitive differentiators Australia 2020

Quadrant Report

Customized report courtesy of: April 2021 ISG Provider Lens™ Quadrant Report | April 2021 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, including illustrations, research, conclusions, and consulting services focused on technology and service providers’ strengths and assertions and positions contained in this report 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 January 2021, 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 Craig Baty. The editor is Jan Erik Aase. The research event services focused on market trends and disruptive technologies driving change analyst is Srujan Akurathi and the data analyst is Kankaiah Yasareni. The Quality and in business computing. ISG Research™ delivers guidance that helps businesses Consistency Advisor is Louis Pellegrino, Bill Huber, Anne Wynn. accelerate growth and create more value.

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6 Introduction © 2021 Information Services Group, Inc. All rights reserved. 17 Managed Services for Azure Reproduction of this publication in any form without prior 39 Methodology permission is strictly prohibited. Information contained in this report is based on the best available and reliable resources. Opinions expressed in this report reflect ISG’s judgment at the time of this report and are subject to change without notice. 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. Executive Summary ISG Provider Lens™ Quadrant Report | April 2021 Section Name EXECUTIVE SUMMARY Microsoft Ecosystem 2021

Microsoft ecosystem evolving rapidly in Australia Local service providers account for the growing competition, and many are beginning to challenge their larger rivals. This trend is expected to gain traction significantly over the The ecosystem of Microsoft-certified service providers is continuing to gain complexity and next five years, further intensifying the competition. Australia-based Telstra, for instance, value both in Australia and around the world. This is because the Microsoft product set is is now expanding its Microsoft go-to-market (GTM) partnership to deliver a new breed evolving rapidly across Office 365 and the modern workplace, managed services for Azure, of next-generation solutions to clients, including smart cloud, IoT, 5G, edge computing SAP on Azure and Dynamics 365. and AI. Empired was the first Microsoft Azure Expert MSP partner to fully adopt Microsoft The Australian government and the private business sector in the region are ramping up Azure Lighthouse, and Data#3 is the only Australia-based Microsoft partner to have their cloud implementations. In 2020, the government announced its intention to move obtained both the Azure Expert Managed Service Provider and the Azure Modernization to a Microsoft Azure-based records management system to modernize digital records Factory competencies. management in the public sector and potentially would use other Microsoft suite products, MSPs must migrate and manage a growing array of applications, including non-Microsoft including Microsoft 365. software, and make them integrate seamlessly into both Microsoft Azure and other cloud Competition in managed Azure cloud environment intensifying in Australia environments. They are also required to enable core business transformation and provide The global cloud market is becoming increasingly competitive as global managed service measurable business improvement for clients, acting as both a traditional value-added providers (MSPs) are using high levels of automation to squeeze margins. Thus, continual reseller and a systems integrator. They should also be adaptable and agile. new investments are required to remain competitive. Enterprises in Australia are under immense pressure to achieve more with fewer resourc- The managed Azure market in Australia is highly competitive, with many global MSPs in- es. They are looking toward implementing applications such as Microsoft Azure to help tensely fighting for market share. These include Wipro, Logicalis, HCL, PwC, Infosys, Unisys, them become more productive and agile. They also want to be able to pick and choose the Accenture, IBM, TCS and DXC. Logicalis, for example, is among Microsoft’s top 1 percent parts of their environment that can be managed over the cloud. of Azure partners globally and also very strong in Australia, while Wipro has a significantly strong infrastructure and cloud management services practice in the region.

COVID-19 as an accelerator for cloud adoption in Australia There is now a greater focus on app-driven modernization of the cloud within Microsoft Azure implementations as organizations embark on the next wave of this technology. This The COVID-19 pandemic has caused a slowdown in client spending globally. However, the poses a challenge for cloud service providers (CSPs) to realign their offerings. relative impact has been less on Australian organizations due to the lower number of local cases. In the longer term, there will be more cloud opportunities as enterprises accelerate The growing proliferation of digital touchpoints and the extension of enterprises into their digital transformation initiatives. consumer segments such as wearables will provide MSPs with strong opportunities over the next few years. The virus outbreak has led to numerous challenges for cloud providers in terms of rapid scaling of some Azure projects with the growing trend of remote working. It has acceler- SAP on Azure adoption gaining momentum both globally and in Australia ated the need for Australian customers to become more agile and reduce costs, driving SAP is aggressively embracing cloud, driving its solutions in the Azure market both in more workloads to the public cloud. The growing concern about ransomware attacks Australia and globally. Much of its core business model, partnerships, development has also driven the acceleration of cloud adoption among some Australian organizations, and support, like those of other large-scale enterprise business management software providing more opportunities for Microsoft Azure providers in the region. providers such as Oracle and IBM, have been following a similar strategy. The rate of SAP Australian MSPs required to increasingly invest in AI capabilities for Azure implementations has recently increased following the company’s announcement that it would end legacy, on-premises development and support. Microsoft is continuing to evolve its AI development and implementation strategy across Azure. This is beginning to result in some level of differentiation of Azure implementa- There is a growing number of global SAP on Azure providers that have a presence in tions by MSPs and accelerate AI for Microsoft Azure platforms over the next few years. Australia; these include Wipro, HCL, Infosys, SoftwareONE, TCS, Tech Mahindra and DXC. Customer expectations and demands with regard to the broader Internet of Things (IoT) This number is expected to grow further over the next five years as SAP on Azure imple- landscape and advanced data analytics capabilities are continuing to increase rapidly both mentations gain further momentum in Australia. For example, Australia is an important in Australia and globally. Over the next few years, MSPs in the region will need to increas- market for HCL, with over 4,000 employees present in Australia and New Zealand (ANZ); ingly invest in AI-related capabilities and training to retain high levels of Microsoft Azure SoftwareONE’s acquisition of Australian company Brave New World (BNW) Consulting certifications and partnerships. will strengthen and extend its SAP Technology Services to the region. The SAP on Azure market in Australia is relatively small but could grow over the next five years as more local providers look toward entering this specialized space.

Many Australian clients have already reached maturity in terms of cloud migration due COVID-19 accelerating modern workplace evolution to the relatively high adoption of technologies in the region. Many companies are now Following the reshaping of Australian businesses because of COVID-19, including the positioned to migrate more complex applications, such as SAP, to the public cloud. large-scale move to the work-from-home (WFH) setup, the modern workplace concept The SAP on Azure market is highly competitive and specialized. Australian customers are is evolving rapidly. Businesses are moving to strengthen and improve the networked demanding strong skills and certifications from their cloud partners, especially in this workplaces they deployed as an emergency response to the pandemic. There is a need to segment. strengthen networks, security and work processes and build in more automation. At the same time, businesses that moved more slowly are rushing to catch up. Organizations Challenges in cloud adoption remain require advice and support from service providers that have large teams of Microsoft-cer- The ”fear factor” held by some Australian companies is one of the biggest challenges in tified experts. terms of migrating high-impact critical business applications such as SAP from on-premise A 2020 Roy Morgan research report found that 32 percent of employed Australians to the cloud. Cloud providers thus should educate the market on how SAP migrations can have been working from home during the pandemic. The survey found that there was a be done with ease and simplicity and at low risk. particularly high WFH rate in the finance and insurance, public administration and defense Microsoft Azure cloud-certified resources and expertise in the region are still lacking at the and communications industries. Many MSPs in the region are already highly active in these customer end for certain technologies, such as cybersecurity, IoT and artificial intelligence industries and are cashing in on the numerous opportunities to expand their offerings in (AI), as demand continues to rise. Australian MSPs should capitalize on this opportunity. this target market.

Global MSPs dominate Office 365 modern workplace landscape Numerous companies now have a hybrid workplace experience, with their workforces par- The Office 365 modern workplace comprises traditional Microsoft products such as Office, tially spread across office and home. Thus, collaboration solutions are required to bridge Excel, PowerPoint and SharePoint and newer collaboration tools such as Teams, OneDrive, the experience gap between the two environments. This would involve reassessing how Power Automate and Power BI. It also includes enterprise mobility and security and Azure meetings, information-sharing and application integration are performed and ensuring cloud for data storage and backup. This segment is dominated by many global MSPs, this integration is done in a seamless fashion.

such as Accenture/Avanade, DXC, Fujitsu, HCL, IBM, Infosys, Logicalis, TCS, Tech Mahindra, New virtual and virtual/physical hybrid teams and processes need agile technology Unisys and Wipro, all of which have strong Australia-based operations. deployments to function, and Modern Workplace 365 addresses these requirements,

which involve stitching together Microsoft 365 tools and enterprisewide applications and AI to become increasingly pervasive in modern workplace environment services to support the new normal. Although AI has found its way into a range of IT support services, it is still in its infancy with The modern workplace segment is ripe for growth, as the COVID-19 crisis has shown regard to office collaboration tools. AI will be become increasingly embedded into Teams business leaders in Australia and around the world that their companies can run well meetings, assisting in information searches and helping employees with common HR and IT virtually just as they do in offices. Australian clients are beginning to move beyond tasks. DXC, for example, is incorporating AI-based automation and IoT services into its offer- enabling their remote workforce and are embracing it as a critical piece of a longer-term ings in Australia, while IBM is integrating AI, automation and user experience into Microsoft strategy to reduce costs and increase productivity. For many clients, this means adopting 365 tools and services. Telstra, over the next one to two years, is building further capabilities a continuous improvement model that supports remote lifecycle services. They have seen to support the growing need for remote working and IoT applications in the region. how adaptable their teams and technology can be and will continue to seek innovations. Organizations are now looking at new non-intrusive ways to engage with their employees. They are also more aware of the importance of employee experience and how a modern These include cognitive virtual assistants to keep them updated with developments at the office workplace is a primary enabler of employee satisfaction. or home-office setup and to take care of all routine work so they can focus on critical tasks. Australian clients are now looking for secure networks that support remote-working Additionally, with more employees returning to the office environment, there is likely to be employees to function in teams backed by collaboration tools and business applications an expansion in conference room and building services that utilize IoT and wearables. These that help deliver an exceptional employee experience. services will also be integrated further with office productivity tools to help with scheduling. Security now a growing issue that organizations should address in the modern workplace environment A rapid evolution of Microsoft’s Dynamics 365 platform is under way

Data security is a rising concern with the growth of the remote workforce. Many organi- Microsoft’s Dynamics 365 platform is continuing to evolve at a very rapid pace. The zations have moved to a work-from-home model without looking closely enough at this market has recently seen the introduction of new products and significant shifts to issue. There is a growing opportunity for security services to expand further outside the existing applications under the Dynamics 365 platform. In addition, MSPs are seeing a office and into the home-office setup. This involves balancing the user experience with growing trend toward an amalgamation of enterprise resource planning (ERP), customer keeping work data secure on all endpoints. relationship management (CRM), Dataverse and digital services on the periphery of Dynamics 365 set that are becoming more modular and seamlessly connected.

The key global providers in the Dynamics 365 landscape in Australia are Accenture/Ava- MSPs to quickly adapt to the rapidly evolving Dynamics 365 landscape nade, DXC, HCL, IBM, Infosys and Wipro. However, a growing number of local providers MSPs offering these services in Australia will need to acquire new skills and technologies are now emerging, some of which are gaining global recognition. For example, Barhead to adapt well to these changes. They should also continue investing in this segment to Solutions is one of nine certified Microsoft Business Applications ISV Development Center address associated challenges in resource recruiting, retention and training. organizations globally, while Empired is in the top 1 percent of Microsoft Dynamics 365 partners worldwide, having been appointed to the Microsoft Dynamics 365 Inner Circle. There is likely to be a lot of competition for the highly skilled but limited resources available, as the demand for Microsoft Dynamics services is not being matched with enough The customer experience (CX) is a primary driver for Dynamics 365 initiatives as smart training of staff, both in Australia and globally. This demand for Dynamics 365 resources businesses seek to offer customers various ways to connect (omnichannel CX), capture puts pressure on both retention and hiring. customer data at every touchpoint and leverage that data using AI and ML to increasingly personalize it. Service providers in Australia are now integrating technologies such as MSPs in Australia will need to innovate and develop custom solutions that offer agile and AI-powered chatbots and robotic process automation (RPA) to continually enhance CX. flexible systems to help companies optimize their resources with IoT integration achieve zero downtime in the back office. Also, the addition of Power Platform and Customer Over the next two years in Australia, a range of new value-adds are expected to enter Insights requires staff to have new and different skill sets beyond traditional Dynamics 365 the Dynamics 365 market in areas such as cloud migration, microverticalized Dynamics offerings. solutions, customer analytics and insights offerings and the Power App factory. Service providers are now accepting this challenge. For example, Wipro intends to roll out MSPs are seeing more opportunities in some traditional Dynamics 365 modules. These additions to its current Dynamics 365 offerings during the next 24 months in Australia. are evolving with new technologies such as IoT and remote assist for field service, project These will include cloud migration, microverticalized Dynamics solutions and customer operations, dynamics marketing and omnichannel offerings in customer service. analytics and insights. Infosys, for example, has established an MBAS (Microsoft Business Apps Services) center of excellence (CoE) that responds to these changes and develops accelerators and frame- works for adding value to client engagements. It is predicted that this trend will continue over the next five years.

Einleitung Introduction Definition

Simplified illustration Microsoft is one of the most established technology providers worldwide, with a network of thousands of partners that augment its capabilities Microsoft Ecosystem 2021 and aid enterprises in adopting its technology. This network has been through a series of tectonic shifts over the past five years, with Satya Nadella transforming the technology giant and its commercial partner Managed Services for Azure Office 365 – Modern Workplace organization in his role as CEO. In that same period, digital transformation has taken over the enterprise technology landscape, requiring a new generation of software and services from Microsoft and its partners. Dynamics 365 SAP on Azure To address these needs, Microsoft has honed its focus to three core areas: the Azure cloud platform; the Microsoft 365 suite of productivity Source: ISG 2021 experiences, which includes Windows 10 and Office 365; and the Dynamics 365 suite of business applications. Partners are now evaluated

Definition (cont.)

Scope of the Report

on their ability to drive use of the Microsoft cloud services that comprise these core The ISG Provider Lens™ quadrant study offers the following to IT decision-makers: product areas. To succeed, service providers must provide enterprises with a robust set Transparency in the strengths and weaknesses of providers/service providers of services complete with forward-thinking capabilities, backed by a strong relationship Differentiated positioning of service providers in relevant areas with Microsoft that can inform future developments and drive business opportunities. Our studies thus provide potential customers with an essential decision-making basis for ISG’s analysis will focus on how providers in Australia, Brazil, Germany and the U.S. are positioning and GTM considerations. ISG advisors and enterprise customers also use information positioned, according to the strength of their portfolio and their competitiveness in from these reports to evaluate their current and potential service provider relationships. the market. While there are thousands of providers in each of these markets to deliver services for Microsoft products, this report will only focus on the top competitors for each of the quadrants. Those considered will include both global firms and local providers for each of the regions studied.

Provider Classifications

The provider position reflects the suitability of IT providers for a defined market Midmarket: Companies with 100 to 4,999 employees or revenues between US$20 million and segment (quadrant). Without further additions, the position always applies to all US$999 million with central headquarters in the respective country, usually privately owned. company sizes classes and industries. In case the IT service requirements from Large Accounts: Multinational companies with more than 5,000 employees or revenue above enterprise customers differ and the spectrum of IT providers operating in the local US$1 billion, with activities worldwide and globally distributed decision-making structures. market is sufficiently wide, a further differentiation of the IT providers by performance is made according to the target group for products and services. In doing so, ISG either considers the industry requirements or the number of employees, as well as the corporate structures of customers and positions IT providers according to their focus area. As a result, ISG differentiates them, if necessary, into two client target groups that are defined as follows:

Provider Classifications

The ISG Provider Lens™ quadrants are created using an evaluation matrix containing four segments (Leader, Product & Market Challenger and Contender), and the providers are positioned accordingly.

Leader Product Market Contender Challenger Challenger

The Leaders among the vendors/ The Product Challengers offer a Market Challengers are also very Contenders still lack mature products providers have a highly attractive product and service portfolio that competitive, but there is still and services or sufficient depth and product and service offering and a provides an above-average coverage significant portfolio potential and breadth in their offering, but also show very strong market and competitive of corporate requirements, but they clearly fall behind the Leaders. some strengths and improvement position; they fulfill all requirements are not able to provide the same Often, the Market Challengers potential in their market cultivation for successful market cultivation. resources and strengths as the are established vendors that efforts. These vendors are often They can be regarded as opinion Leaders regarding the individual are somewhat slow to address generalists or niche players. leaders, providing strategic impulses market cultivation categories. Often, new trends due to their size and to the market. They also ensure this is due to the respective vendor’s company structure, and therefore innovative strength and stability. size or weak footprint within the have some potential to optimize respective target segment. their portfolio and increase their attractiveness.

Provider Classifications (cont.)

Each ISG Provider Lens™ quadrant may include a service provider(s) which ISG believes has strong potential to move into the Leader quadrant. This type of provider can be classified as a Rising Star. Number of providers in each quadrant: ISG rates and positions the most relevant providers according to the scope of the report for each quadrant and limits the maximum of providers per quadrant to 25 (exceptions are possible).

Rising Star Not In

Companies that receive the Rising Star award have a promising The service provider or vendor was not included in this portfolio or the market experience to become a leader, including the quadrant. There might be one or several reasons why required roadmap and adequate focus on key market trends and this designation is applied: ISG could not obtain enough customer requirements. Rising Stars also have excellent management information to position the company; the company does and understanding of the local market. This award is only given to not provide the relevant service or solution as defined for vendors or service providers that have made significant progress each quadrant of a study; or the company did not qualify toward their goals in the last 12 months and are expected to reach the due to market share, revenue, delivery capacity, number Leader quadrant within the next 12-24 months due to their above- of customers or other metrics of scale to be directly average impact and strength for innovation. compared with other providers in the quadrant. Omission from the quadrant does not imply that the service provider or vendor does not offer this service or solution, or confer any other meaning.

Microsoft Ecosystem - Quadrant Provider Listing 1 of 4

Managed Services for Azure Office 365 – Modern Workplace Dynamics 365 SAP on Azure

AC3 4 Leader 4 Not In 4 Not In 4 Not In

Accenture (Avanade) 4 Leader 4 Leader 4 Leader 4 Leader

Altis Consulting 4 Contender 4 Not In 4 Not In 4 Contender

Barhead Solutions 4 Not In 4 Not In 4 Product Challenger 4 Not In

Capgemini 4 Product Challenger 4 Product Challenger 4 Not In 4 Contender

Codify 4 Contender 4 Contender 4 Not In 4 Not In

Cognizant 4 Product Challenger 4 Rising Star 4 Contender 4 Contender

Cubesys 4 Contender 4 Not In 4 Not In 4 Not In

Data#3 4 Leader 4 Product Challenger 4 Not In 4 Not In

Datacom 4 Product Challenger 4 Product Challenger 4 Product Challenger 4 Not In

Dell 4 Not In 4 Not In 4 Not In 4 Product Challenger

Dicker Data 4 Leader 4 Not In 4 Not In 4 Not In

Microsoft Ecosystem - Quadrant Provider Listing 2 of 4

Managed Services for Azure Office 365 – Modern Workplace Dynamics 365 SAP on Azure

DXC 4 Leader 4 Leader 4 Leader 4 Leader

Empired 4 Leader 4 Product Challenger 4 Leader 4 Not In

EY 4 Not In 4 Not In 4 Contender 4 Not In

FiveP Australia 4 Not In 4 Contender 4 Not In 4 Not In

Fujitsu 4 Leader 4 Leader 4 Contender 4 Not In

Fusion5 4 Not In 4 Not In 4 Contender 4 Not In

Generation-E 4 Not In 4 Contender 4 Not In 4 Not In

HCL 4 Product Challenger 4 Product Challenger 4 Product Challenger 4 Leader

IBM 4 Leader 4 Leader 4 Leader 4 Product Challenger

Infosys 4 Product Challenger 4 Contender 4 Leader 4 Product Challenger

Ingram Micro 4 Not In 4 Contender 4 Product Challenger 4 Not In

Insight 4 Market Challenger 4 Not In 4 Not In 4 Not In

Microsoft Ecosystem - Quadrant Provider Listing 3 of 4

Managed Services for Azure Office 365 – Modern Workplace Dynamics 365 SAP on Azure

LAB3 4 Rising Star 4 Not In 4 Not In 4 Not In

Logicalis 4 Leader 4 Leader 4 Not In 4 Not In

Logicalis Australia 4 Not In 4 Not In 4 Not In 4 Contender

Macquarie Telecom 4 Rising Star 4 Not In 4 Not In 4 Not In

Melbourne IT 4 Contender 4 Not In 4 Not In 4 Not In

Mindtree 4 Product Challenger 4 Product Challenger 4 Product Challenger 4 Market Challenger

NTT 4 Market Challenger 4 Market Challenger 4 Market Challenger 4 Contender

OOBE 4 Not In 4 Contender 4 Not In 4 Not In

Publicis Sapient 4 Product Challenger 4 Contender 4 Contender 4 Not In

PWC 4 Product Challenger 4 Not In 4 Not In 4 Not In

Rackspace Technology 4 Contender 4 Not In 4 Not In 4 Market Challenger

Rhipe 4 Not In 4 Not In 4 Not In 4 Product Challenger

Microsoft Ecosystem - Quadrant Provider Listing 4 of 4

Managed Services for Azure Office 365 – Modern Workplace Dynamics 365 SAP on Azure

SoftwareONE 4 Product Challenger 4 Contender 4 Market Challenger 4 Rising Star

Sonata 4 Not In 4 Not In 4 Contender 4 Not In

TCS 4 Leader 4 Leader 4 Product Challenger 4 Leader

Tech Mahindra 4 Leader 4 Leader 4 Contender 4 Leader

Telstra 4 Leader 4 Leader 4 Not In 4 Market Challenger

Unisys 4 Leader 4 Leader 4 Not In 4 Not In

Velrada 4 Not In 4 Not In 4 Rising Star 4 Not In

Veritec 4 Contender 4 Not In 4 Rising Star 4 Product Challenger

Vigilant 4 Product Challenger 4 Not In 4 Not In 4 Not In

Wipro 4 Leader 4 Leader 4 Leader 4 Leader

ENTERPRISE CONTEXT

Managed Services for Azure

This report is relevant to enterprises of all sizes across all industries in Australia IT and technology leaders should read this report to understand the relative positioning evaluating managed service providers supporting Microsoft Azure. and capabilities of partners that will help them effectively consume services from Micro- soft’s cloud. The report will also show how their technical capabilities square with those of In this quadrant report, ISG lays out the current market positioning of Azure managed the rest of the market. service providers in Australia and how they address key enterprise challenges in the region. Cloud managed service providers can help enterprises by tailoring Azure to Sourcing and procurement professionals should read this report to understand the particular organizations’ needs. ISG finds that midsize Australian firms want to move provider ecosystem for Microsoft Azure managed services in the Australian market and quickly to the cloud so they can reduce their spending on on-premises datacenters. learn how providers compare with one another in a crowded Microsoft services ecosystem. Working with a provider partner can ease these companies’ migration efforts.

Australian enterprises, like others across the globe, often turn to the cloud for its benefits, such as flexibility and agility in provisioning of computing resources and easy access to new capabilities. Given Microsoft’s long history of serving the Australian market, many of these companies are picking Azure in part because of their longstanding business relationship with the company.

ISG finds that Australian enterprises are significantly adopting MSP on Azure services. Enterprises are implementing IoT and advanced data analytics to support their digital journey, and this trend is rapidly growing in Australia. A significant segment of enterprises is looking to invest in AI capabilities to leverage data for insights through machine learning algorithms.

Definition

Managed public cloud service providers (MSPs) offer professional and managed services that augment Azure’s built-in capabilities, including infrastructure as a service (IaaS) and platform as a service (PaaS). These services include provisioning, real-time and predictive analysis, monitoring and operational management of the customer’s public cloud and multi-cloud environment. The aim is to maximize performance of enterprise cloud workloads, reduce costs and ensure compliance and security. Typically, specially developed or licensed cloud management platforms and tools are used to provide customers with the highest level of automation and the necessary transparency over the managed cloud resource pool in terms of capacity utilization and costs, including independent management.

MANAGED SERVICES FOR AZURE

Definition (cont.) Eligibility Criteria

The provided services typically include: Experience in designing, building and managing public and multi-cloud environments with a focus on Microsoft Azure Professional services for the management and monitoring of CPU, memory, databases and operating systems as independent or Support in the development of software code and cloud-native and legacy system integration microservices, virtual machines or container services Experience in both implementing Agile and DevOps methodologies and integrating them with Update and patching services for the operating system, middleware enterprise clients’ existing processes and application Experience in application programming interface (API) automation and cloud analytics Service portal for cost management (chargeback and showback) and Well-developed security practices and capabilities identity management or IT service management Number and location of provider resources that assist enterprises with Microsoft Azure Governance and compliance management Strength of the provider’s partnership with Microsoft, measured by the number and category Supporting services such as incident management, configuration, of relevant certifications it holds, length of relationship with Microsoft and evidence of strategic security services and automation setup. cooperation between the provider and Microsoft around Azure

MANAGED SERVICES FOR AZURE

Observations

As organizations embark on the next wave of the cloud, there is now a Following the outbreak of COVID-19, cloud providers offering services such as managed services greater focus on app-driven modernization of the cloud to take center for Azure have witnessed drastic changes in customer demand, technology innovation and market stage among Australian Microsoft Azure implementations. This poses fluctuations. This has resulted in numerous challenges, particularly with the rapid scaling of some a challenge to cloud service providers to align their offerings and build Azure projects due to the growing trend of remote working. The pandemic has also accelerated the the necessary capabilities to address market demand. It requires an need for Australian clients to become more agile and achieve cost reduction, which drives a greater amalgamation of intellectual property (IP) and the integration of fit-for- adoption of some cloud applications and the migration of more workloads to public clouds. purpose tools to address the related legacy issues. A major expansion area for cloud implementation management over the next two years is the There are also an increasing number of challenges around the requirement to address the growing proliferation of digital touch points and the extension of the traditional cloud managed services model. The market is becoming enterprise into consumer segments such as a wearables. This will lead to a reduction in the number highly competitive as global providers use high levels of automation to of traditional server-based solutions in favor of cloud-to-edge applications. squeeze margins and capture market share, so providers need to make Clients are under immense pressure to achieve more with fewer resources and are therefore seeking continuous investments to sustain themselves. solutions through applications such as Microsoft Azure that enable them to be more productive and In 2020, the Australian government announced its intention to poten- agile. They are demanding the flexibility to pick and choose the parts of their environment that can be tially move to a Microsoft Azure-based records management system managed over the cloud. to modernize digital records management in the public sector. This would encompass Microsoft Azure resources and other Microsoft suite products, including Microsoft 365, cloud-based project management products and customer relationship management products.

MANAGED SERVICES FOR AZURE

Observations (cont.)

Australian customers are also looking for cloud providers that offer a between US$60 million and US$70 million from over 1,000 customers. AC3 provides a full range of higher level of managed service, including features such as DevOps, Azure services, such as initial strategy and planning, migration, ongoing support and monitoring, containerization and application-level SLAs. These managed services plus cost optimization and security. are not easy to scale and replicate, posing an extra challenge to Accenture, with Avanade (its joint venture with Microsoft), has in-depth expertise in Agile devel- managed Azure providers. opment. It employs over 10 percent of all Professional Scrum Trainers (PSTs) worldwide, providing There is still a lack of cloud-certified resources and expertise in certain high-level consultancy services, complemented by expertise in DevOps on Azure. It won Microsoft’s technologies at the customer end, such as cybersecurity, IoT and AI, as Global DevOps Partner of the Year award in 2020. client demand continues to rise. While they are still in the early stage, Data#3 Limited (DTL) is a leading Australian IT services and solutions provider, delivering solutions Australian clients will increasingly focus on realigning legacy applica- spanning cloud, modern workplace, security, data and analytics, and connectivity. It is Microsoft’s tions to leverage data, insights, machine learning (ML) and AI. only Australian partner to have obtained both the Azure Expert Managed Service Provider and Of the 34 providers in this quadrant, 14 are Leaders and two are Rising Azure Modernization Factory competencies. Stars. Dicker Data is an ASX-listed technology company that has evolved to become Australia’s largest AC3 is a privately owned Australian MSP specializing in cloud value-added distributor of hardware, software, cloud and other emerging technologies. As one solutions. Founded in 1999, the company has about 270 full-time of Microsoft Australia’s most valued partners, Dicker Data has gained a strong reputation for the employees (FTEs) and 80 contractors. As a private company, it does work it undertakes with channel partners. not publish revenues, but recent reports suggest annual revenue is

MANAGED SERVICES FOR AZURE

Observations (cont.)

DXC is a large IT services company formed in 2017 with the merger IBM’s Multicloud Management Platform (MCMP) provides consistent managed services across of Hewlett-Packard Enterprise’s Enterprise Services business with multi-clouds environments using modular tools along with integrated and intuitive automation. Computer Sciences Corporation. DXC Australia provides a broad IBM has evolved its business focus in the past four years, with services that address data, AI, cloud, range of Managed Azure services and has the skills and partner analytics and cybersecurity now representing more than half its revenue. network to deploy and manage complex hybrid private/public cloud Logicalis Australia is in the top 1 percent of Microsoft Azure partners globally. Logicalis continues and multiple public cloud services. to concentrate in Australia on a wide range of areas including Data Platform & Data Analytics, IoT Empired is an Australian MSP that has been a longstanding and and Securities. Logicalis Australia has a particularly strong focus in the healthcare sector. Govern- valued partner of Microsoft for managed services for Azure and has ment also will be a key focal point over the next few years in Australia, particularly with regard to recently obtained the Azure Expert MSP certification. It was the first security. Microsoft Azure Expert MSP partner to fully adopt Microsoft Azure TCS has been present in the Australian IT market for over 30 years and employs about 17,000 Lighthouse as the core of its cloud management platform. consultants and associates. It is an early adopter of the Azure MSP Program from Microsoft. TCS Fujitsu, established in 1935 and with global headquarters in Tokyo, is also one of the few providers that has a dedicated, global Microsoft business unit, which will is the world’s seventh largest IT provider. Fujitsu ANZ generated significantly assist in growing its operations in Australia. US$1.1 billion in revenue and has over 3,500 employees. It runs a cloud CoE and a security operation center (SOC) in Australia and has a long history of providing managed services on Azure.

MANAGED SERVICES FOR AZURE

Observations (cont.)

Tech Mahindra is a Microsoft Azure Expert MSP in areas such as Wipro has a significantly strong infrastructure and cloud management services practice in infrastructure and application migration. The company has made Australian with an emphasis on data center migration. It is continuing to leverage its strong significant progress in Australia’s market for Azure managed services cross-industry focus, which includes success with key clients in segments such as retail groceries. over the last few years. Its Azure strategy in the region encompasses a move toward an increasing number of AI and IoT implementations in areas such as water utilities. Telstra has a strategic partnership with Microsoft dating back to 2010 and is its GTM partner. It is now expanding this partnership LAB3 (Rising Star) is a local provider that offers managed services for Azure, with a focus on to deliver a new breed of next-generation solutions to customers, developing proprietary IP in core verticals such as construction, mining and utilities. It is currently including smart cloud, IoT, 5G, edge computing and AI. Telstra developing a new banking-as-a-service platform for an online bank. The platform will enable plans to extend Azure offerings over the next two years to include business partners to natively provide full-service banking and payments to their clients. automation for scaling public cloud management services such as Macquarie Telecom (Rising Star) is an ASX-listed Australian company that provides telecom, cloud monitoring, patching and backup. computing, data center, government and cybersecurity services. Its new Microsoft Azure business Unisys Australia offers the CloudForte™ cloud management plat- complements these divisions and enables it to bring a public cloud into its managed hybrid IT form to manage multi-cloud environments, including hybrid private services environment. Macquarie Telecom has made impressive inroads in the market with its new cloud and multiple public cloud. It has developed these services in Azure business in a short period of time. response to the growing prevalence of multi-cloud environments in Australian businesses. Unisys has extensive experience in providing services in environments with exacting security compliance requirements.

AC3 Overview Caution AC3 is a privately owned Australian MSP specializing in cloud solutions. Founded in 1999, the company has While the Bulletproof acquisition strengthened AC3, the integration of the about 270 full-time employees (FTEs) and 80 contractors. As a private company, it does not publish revenues, businesses combined with their different private cloud and public cloud heritages but recent reports suggest annual revenue is between US$60 million and US$70 million from over 1,000 may produce a few speed bumps. customers. The business expanded significantly in 2018 following its acquisition of cloud services provider Bulletproof for A$24.7 million. The Bulletproof takeover also included New Zealand-based Cloud House (acquired in 2016). AC3 provides a full range of Azure services such as initial strategy and planning, migration, ongoing support and monitoring, plus cost optimization and security. Strengths

Strategic partnership with Microsoft: AC3 is a Microsoft Azure Gold Partner and Tier 1 cloud services provider (CSP) partner.

Wide range of services for Azure: AC3 provides a full range of Azure services, such as initial strategy and planning, migration, ongoing support and monitoring, plus cost optimization and security.

Deep expertise in security: Having originally been part of the NSW Government’s Department of Finance, Services & Innovation (prior to going private), AC3 has a long heritage of providing technology services that 2021 ISG Provider Lens™ Leader comply with exacting Australian public services security standards. Security remains a key pillar of AC3’s offerings.

Multi-cloud management services: In addition to solutions for managing hybrid private/public cloud AC3 is one of the largest MSPs in Australia, environments, AC3 offers multi-cloud management services that leverage the public cloud and Amazon Web Services’ (AWS) expertise, which it acquired through the 2018 takeover of Bulletproof. with deep expertise in the government

Qualified multitenant host (QMTH): As part of the QMTH program, Microsoft authorizes AC3 to host clients’ sector and extensive experience in deploying Windows virtual machines via the Microsoft Cloud Agreement subscription on dedicated or multitenant government-grade security solutions. hardware. It is also authorized to host Office 365 ProPlus (including E3 and E5), Visio Pro for Office 365 and Project Online Professional.

ACCENTURE (AVANADE) Overview Caution Accenture, with Avanade (its joint venture with Microsoft) provides more than 65,000 Microsoft-trained Accenture/Avanade’s size and complexity may occasionally limit its ability to professionals globally who are focused on Azure managed services, business process transformation based on respond to customer and market disruption and potentially hinder standardization Microsoft Dynamics 365, and modern workplace services using Microsoft 365. Avanade has over 300 Microsoft of pricing, operations and deliverables across multiple geographies and industries. specialists in Australia across Brisbane, Canberra, Melbourne, Perth and Sydney. It reported global revenues of US$44.3 billion in fiscal 2020 and Australian revenues of US$150 million, according to Dun & Bradstreet.

Strengths

Strategic and commercial partnership with Microsoft: Avanade is a joint venture between Microsoft and Accenture; a majority of the company is owned by the latter. It boasts 19 Microsoft Gold competencies and over 100 Microsoft Partner awards, including Microsoft Global SI Partner of the Year in 2020 (for the 15th time) and Microsoft Australia Country Partner of the Year for 2020. Both Microsoft and Accenture/Avanade work closely through the joint venture on innovating and creating new services.

End-to-end solutions on Microsoft Azure stack: With organizationwide virtual teamwork being key to success right now, and the ongoing reshaping of businesses due to COVID-19, Accenture/Avanade’s skill set across the entire Microsoft ecosystem can support innovation and agility. This is carried out via a combination of 2021 ISG Provider Lens™ Leader cloud migration and management services, process transformation with Dynamics 365 and increased team collaboration with modern workplace initiatives. A few other Azure MSPs come close to matching the Agile and DevOps capabilities: Avanade has in-depth Agile development expertise. It employs over 10 percent strength of Accenture/Avanade’s Microsoft relationship, of all Professional Scrum Trainers (PSTs) worldwide, providing high-level consultancy services, complemented by expertise in DevOps on Azure. It was Microsoft’s Global DevOps Partner of the Year in 2020. the size of its Microsoft-certified workforce and its market strength globally and in Australia. Comprehensive security services: Accenture/Avanade provides a layered in-depth security strategy across identity, data, hosts and networks with unified security management. It was named the inaugural Microsoft Security Advisory award winner in 2020.

DATA#3 Overview Caution Data#3 Limited (DTL) is a leading Australian IT services and solutions provider, delivering solutions spanning Being an Australia-based service provider, DTL is not ideally positioned to support cloud, modern workplace, security, data and analytics and connectivity. Headquartered in Brisbane, DTL businesses that are looking to scale internationally. reported revenues of US$1.6 billion in 2020 and has more than 1,200 employees. It operates across 12 locations in Australia and Fiji.

Strengths

Deep expertise in Azure: DTL is Microsoft’s only Australian partner to have obtained both the Azure Expert Managed Service Provider and Azure Modernization Factory competencies.

Long and close partnership with Microsoft: DTL has been a Microsoft partner since 1994 and has the most locally earned Azure certifications in Australia, including the Azure Elite program with Microsoft’s Azure engineering team. In October 2018, Microsoft selected the company to provide Azure Migration services as part of its Modernization Factory in Australia. 2021 ISG Provider Lens™ Leader Security solutions: DTL provides implementation and management of Azure Sentinel security information and event management (SIEM), an AI-driven security solution that automatically responds to threats to better protect cloud and the on-premises estate. DTL is one of Microsoft’s strongest Australian Data and analytics solutions: DTL’s Data Innovation Studio leverages its Data Journey Map framework, as well partners, holds Azure Expert Managed Service as design thinking techniques, to assist in developing an adoption roadmap to plan Azure data and analytics Provider credentials and offers services from 12 initiatives. This methodology helps clients understand and adopt new data solutions such as Azure Synapse locations in Australia and Fiji. Analytics and Azure Purview.

DXC Overview Caution DXC Technology (DXC) is a large IT services company formed in 2017 with the merger of Hewlett-Packard DXC is perceived by some enterprises as slower and less agile than some of its Enterprise’s Enterprise Services business with Computer Sciences Corporation. The company reported revenue competitors. In this highly competitive environment, it is important for the company of US$21 billion in 2019 with 138,000 employees worldwide. It has a 10,000-strong workforce in Australia and to change this notion to convince potential clients of the validity of its proposed generated revenue of more than US$1.4 billion in the region. DXC was one of the first three Microsoft Azure solutions. Expert MSPs to have passed third-party audit and verification.

Strengths

Breadth of Azure services: DXC Australia provides managed services for Azure, application services for Azure, DXC Analytics Migration Factory for Microsoft Azure, platform as a service for SAP on Azure, Microsoft CSP, and managed services for the Microsoft Azure stack. It integrates on-site, on-premises local support through its strategic partnerships with HPE, Dell and Lenovo.

Industry sector expertise: DXC provides services for a wide range of industries, including banking and insurance, retail and wholesale, healthcare and life sciences, energy, utilities, oil and gas, manufacturing, government and education. 2021 ISG Provider Lens™ Leader

Extensive partner network: DXC delivers large projects in the aforementioned industries through strategic alliances with major industry partners such as Microsoft, AWS, Oracle, SAP, ServiceNow, VMware, AT&T, Dell In Australia, DXC has the skills and partner Technologies, Google Cloud, HP, HPE, IBM, Micro Focus and PwC. These partnerships enable it to manage network to deploy and manage complex complex hybrid cloud transitions and deliver services that wholly integrate mainframe, midrange, private and public clouds. hybrid private/public cloud and multiple public cloud services. Strong Microsoft skill set: DXC has more than 20,000 Microsoft professionals globally.

DICKER DATA Overview Caution Dicker Data is an ASX-listed technology company and is Australia’s largest value-added distributor of hardware, Despite Dicker Data being a major fast-emerging player in Australia with its early software, cloud and other emerging technologies. It distributes a wide portfolio of products from a range of Azure success, it remains predominately an IT reseller. The company will need to global technology vendors, including Microsoft and other Tier 1 global brands. In 2020, Dicker Data launched a continue executing its Microsoft Business unit efficiently and leverage its Wiise new Microsoft Cloud business unit. By late 2020, this business unit was approaching the US$100 million mark in acquisition to make further market inroads in 2021 and 2022. annual revenue and recorded 25 percent annual growth in the same year.

Strengths

Launch of new Microsoft business unit strengthens Azure offerings: As part of this new unit, Dicker Data will also be launching a partner-to-partner portal and a dedicated marketing service called Amplify that offers resellers full-service marketing assistance from strategy to content collateral and execution. The new unit will be a key growth facilitator over the next few years.

High standing with Microsoft Australia as a local partner: Dicker Data is a strong Microsoft partner and has an excellent reputation for the work it undertakes with channel partners as they digitally transform and implement cloud computing technologies. Its mission is to deliver strong business value through specialist cloud 2021 ISG Provider Lens™ Leader technology advisory services and ongoing partner management services. Dicker Data’s local Microsoft team has strong Acquisition of Wiise in 2020 bolsters SMB offerings:Wiise, KPMG’s technology arm, is built on Microsoft Azure in partnership with Australia’s Commonwealth Bank and will now be distributed to local small and connections to the Microsoft Global Network, medium businesses (SMBs). It is particularly appealing to SMB owners and managers as they automate providing its Australian IT resellers and customers processes to obtain greater operational efficiency. The application will enable partners to focus on traditional with early access to leading-edge solutions, workloads such as Microsoft 365 and Azure, while also working on applications such as ERP and CRM. programs, tools, resources and Microsoft experts.

EMPIRED Overview Caution Established in 1999 in Western Australia, Empired is an MSP offering Microsoft services, including Office 365, Although Empired has a strong client base in Australia, it still needs to penetrate Microsoft Dynamics 365 and Microsoft Azure. Its core product services extend to CRM, AI, enterprise applications, further into Southeast Asia and beyond to be considered a true regional MSP. business intelligence enterprise content management and mobile solutions. Intergen, a subsidiary of Empired, is now one of Australasia’s leading dedicated Microsoft solutions providers. Empired uses native Azure tools as much as possible to reduce the third-party cost for customers and to grow with the Azure platform.

Strengths

Strong heritage in managed services for Azure: Empired has been a longstanding and valued partner of Microsoft for its managed service for Azure and has recently obtained the Azure Expert MSP certification due to its high-level skill set in cloud and digital transformation. It was the first Microsoft Azure Expert MSP partner to fully adopt Microsoft Azure Lighthouse as the core of its cloud management platform combined with its Azure DevOps accelerators.

Breadth of core managed Azure services: Empired provides a range of IT services spanning managed services to digital transformation. This breadth is not typically found in similarly sized Australian IT services companies. 2021 ISG Provider Lens™ Leader Empired is thus able to provide comprehensive end-to-end services to achieve customer outcomes.

Diverse client base ranging from midsize to large organizations: Empired’s client base ranges from medium-sized businesses to large corporate entities and state and federal government departments. Its key Empired’s credentials as a Microsoft Azure verticals in Australia and Southeast Asia include education, financial services and insurance, health, mining, oil Expert MSP partner are highly commendable and gas, retail, manufacturing and utilities. for an MSP catering to Australian SMBs.

FUJITSU Overview Caution Established in 1935 and with global headquarters in Tokyo, Fujitsu is the world’s seventh-largest IT provider. It Fujitsu is a financially strong company globally. However, with over 60 percent of reported global revenues of US$36.5 billion in 2019 and has more than 129,000 employees worldwide. Fujitsu revenues coming from its home market, its ability to continue making heavy R&D ANZ generated US$1.1 billion in revenues and has a 3,500-strong staff. It runs a cloud CoE and an SOC in investments in the Microsoft space locally may be affected by global performance. Australia.

Strengths

Deep relationship with Microsoft: Fujitsu has had a global alliance relationship with Microsoft for over 30 years. It is a Gold Microsoft partner, an Azure Expert MSP and a Global Service Integrator Partner. It was Microsoft’s top CSP (cloud solution provider) GSI (global systems integrator) partner by revenue in 2019 and the No. 1 Azure GSI partner in New Zealand in 2019.

Multi-cloud services: With its multi-cloud transformation service, Fujitsu assists organizations in moving to and managing complex solutions, including hybrid cloud and multi-cloud services based on Azure, AWS and Oracle. These programs are supported by Fujitsu’s cloud CoEs both in Australia and globally. 2021 ISG Provider Lens™ Leader

Government-grade secure cloud: In Australia, Fujitsu has the experience and expertise in deploying Azure cloud at the “protected’ security classification level to comply with the federal government security protocols. With its expertise in security and IoT, Fujitsu has Innovative IoT and analytics solutions with GlobeRanger on Azure: Fujitsu’s wholly owned subsidiary, established a deep partnership with Microsoft plus GlobeRanger, is a leader in IoT and automated identification technologies (AIT) such as radio-frequency successful client relationships with large Azure identification (RFID) and Bluetooth low energy (BLE), with deep experience dating back to the early days of clients in Australia. RFID and machine-to-machine systems. Its expertise in networking, applications, sensors and embedded technologies can provide insight, advice and implementation resources to clients in the manufacturing, distribution and logistics, aviation and defense industries.

IBM Overview Caution IBM is a major global IT hardware, software and services provider with a large presence in the modern IBM is a large organization whose customer engagement approach may not suit all workplace market. The company has evolved its business focus in the past four years, with services that address potential clients. It should assess the cultural fit during evaluations. data, AI, cloud, analytics and cybersecurity now representing more than half of its revenue — up from a quarter just four years ago. IBM Australia’s 4,000-strong workforce generated annual revenues of US$2.6 billion in 2019.

Strengths

Multi-cloud managed services (MCMS): IBM’s Multicloud Management Platform (MCMP) provides consistent managed services across multiple clouds using modular tools along with integrated and intuitive automation. Leveraging modern service management principles such as site reliability engineering (SRE) and cloud service management and operations (CSMO), MCMS for Azure is part of the portfolio that provisions and manages environments on Microsoft Azure public clouds. It is delivered as a service, with a fixed scope and different service tiers and pricing that can start small and scale up to mirror actual Azure consumption. Focus on innovation: IBM’s size enables it to undertake pure research, which ensures many innovative products. Since 2012, it has invested US$45 billion in R&D, with a focus on cloud, AI, blockchain and quantum computing. 2021 ISG Provider Lens™ Leader In 2018, it was granted 1,600 new patents related to AI and 1,400 related to cybersecurity. The company has translated its inventive process into IBM Garage™, a methodology that merges design thinking with labs and rapid prototyping capabilities. IBM supports clients in areas such as business strategy development, digital IBM has reinvented itself and its data, AI, cloud, process redesign, business and talent transformation and the development of responsive operating models. analytics and cybersecurity expertise and Many of these are increasingly being supported by AI. services, making it a strong player in Australia’s Large partner ecosystem in cloud: IBM has a large partner ecosystem in the cloud marketplace. In July Azure services market. 2020, it announced an alliance with EY, designed to help both organizations help clients accelerate their digital transformations and leverage the hybrid cloud capabilities of Red Hat OpenShift, IBM Watson®, 5G and edge technologies.

LOGICALIS AUSTRALIA Overview Caution Logicalis is a digital transformation enabler and cloud managed service provider with a presence in 27 Logicalis has already established a solid base of enterprise-level clients but needs countries. It has more than 10,000 clients worldwide and over 6,500 employees. The company generated US$1.7 to look at making further inroads into this segment over the next five years as local billion in revenue in FY2020. Logicalis Australia has 300 employees and 400 customers, with offices in NSW, competition mounts. Victoria and Queensland. Its partnership with Microsoft accounts for almost half of its Australian revenues. With regard to customer size in the region, the company targets midmarket to enterprise-level organizations.

Strengths

A leading Microsoft partner, both globally and in Australia: Logicalis is in the top 1 percent of Microsoft Azure partners globally. It is continuing to focus on Australia across a wide range of areas, including data platform and data analytics, IoT and securities. It is also focused on driving its Microsoft Azure business in Australia through its global cloud CoE.

Broad industry focus with strong expertise in healthcare: Logicalis’ key verticals in Australia span retail and wholesale, automotive, healthcare, life sciences and pharmaceuticals, logistics, travel and transportation, government, education and utilities. Logicalis Australia has a particularly strong focus on the healthcare sector. 2021 ISG Provider Lens™ Leader Government will also be a key focus over the next few years in Australia, particularly with regard to security. Strong global acquisition pipeline: Over the next few years, Logicalis will look to build and acquire Logicalis is continuing to make strong inroads organization specialists in specific technology segments. For example, it recently acquired Kumulus, a Brazilian into the healthcare sector in Australia and will company specializing in cloud and data managed services. strongly focus on other market verticals over the next two years.

TECH MAHINDRA Overview Caution Tech Mahindra is a leading technology provider of digital transformation, consulting and business re- Despite increasing its penetration into the retail/wholesale, government and engineering services and solutions with a presence across 90 countries. It launched operations in Australia in education markets in Australia, Tech Mahindra will need to look at expanding into 1998 and has offices in Brisbane, Sydney, Melbourne, Perth and Canberra. The company has over 45 clients other industries over the next few years as the market competition intensifies. in ANZ and around 5,500 working associates. Its managed services for Azure business is growing strongly in Australia’s retail/wholesale, government and education markets.

Strengths

Microsoft Azure Expert Managed Service Provider status: In 2020, Tech Mahindra was recognized as a Microsoft Azure Expert MSP in areas such as infrastructure and application migration. The company’s Azure Expert MSP status enables it to deliver stronger proactive automation and consultative intervention services for its Australian customers on Azure.

Strong expertise in retail/wholesale, government and education markets: Tech Mahindra has made significant inroads into Australia’s managed services for the Azure market over the last few years. It has seen particularly high penetration in the retail/wholesale, government and education markets among midmarket 2021 ISG Provider Lens™ Leader enterprises (50-4,999 employees). The company also is starting to penetrate the small business market in Australia in these industries. As a Microsoft Azure Expert MSP, Tech Mahindra Launch of new Microsoft business unit significantly strengthens managed Azure offerings: In 2020, ensures the highest quality of Azure service Tech Mahindra launched a dedicated Microsoft business unit that will focus on developing enterprise cloud solutions by leveraging Microsoft platforms and technologies. The business unit will house a CoE to provide and builds on its status as a Microsoft Gold a comprehensive suite of solutions across Microsoft Azure, Dynamics 365 and Office 365 and the modern Competency Partner. workplace. Tech Mahindra now has 2,500 professionals in its CoE to deliver services to more than 900 customers globally.

TELSTRA Overview Caution Telstra is Australia’s largest telecommunications provider and has a presence in many overseas markets. It has Although Telstra has solid managed IT service experience, it remains a telco at heart a strategic partnership with Microsoft dating back to 2010 and is its GTM partner. Telstra is now expanding that and lacks some of the specialization skills of larger global MSPs. partnership to deliver a new breed of next-generation solutions to customers, including smart cloud, IoT, 5G, edge computing and AI. Its Managed Azure service is a cloud management platform with highly scalable and automated elements. It also incorporates a managed service through Telstra Purple managed services.

Strengths

Symbiotic relationship with Azure for better business outcomes: Microsoft Azure, in combination with Telstra’s core network and telco expertise, supports Australia-based developers and ISVs in developing edge solutions such as AI. The partnership assists the telco in driving digital transformation and cloud adoption at scale by enabling it to serve new enterprises and midmarket businesses.

Strong customer support focus: Telstra’s managed services for Azure customers in Australia have an allocated service delivery manager (SDM) who works closely with the customer and account management team to understand the customer’s requirements. The SDM can escalate resolution of systemic service delivery issues 2021 ISG Provider Lens™ Leader when they arise. Strong pipeline for further development of Azure platform: Telstra plans to extend its Azure offerings Telstra is expanding its partnership with over the next two years to include automation to scale public cloud management services such as monitoring, Microsoft in Australia to deliver a new breed of patching and backup. This will provide higher value services such as DevOps and container managed services. Telstra will also focus on multi-cloud support services for Azure in Australia. next-generation solutions, including smart cloud, IoT, 5G and AI.

TCS Overview Caution Tata Consultancy Services (TCS) is a global IT services, consulting and business solutions company Despite establishing a strong presence in Australia, TCS will face intense headquartered in India. It is one of the top 10 global IT services companies, with a market capitalization of more competition from both local and overseas managed service providers in the than US$100 billion and over 400,000 consultants in 46 countries. TCS has been present in the Australian IT managed services on Azure segment. market for over 30 years and employs about 17,000 consultants and associates. It has been an early adopter of the Azure MSP Program from Microsoft.

Strengths

Strong expansion plans over next few years: TCS plans to significantly expand its managed Azure offering over the next two years. This includes building business domain-specific offerings for regulated industries, such as financial services and healthcare, as well as investing in AI for cost forecasting, lifecycle management and security remediation. TCS will also look to combine cloud native management functionality along with heterogeneous support.

Broad industry coverage in Australia: TCS’ managed services for Azure offering has been adopted across a broad range of industries in Australia. This includes retail and wholesale, banking and insurance, chemicals, 2021 ISG Provider Lens™ Leader oil and gas, logistics, travel and transportation, IT telco, government, education and utilities. In late 2020, the company won a project with the Australian Energy Market Operator (AEMO) for testing an Azure-based big data TCS is one of the few providers that has a metering data management solution. dedicated, global Microsoft business unit, which Dedicated Microsoft business unit: In late 2019, TCS set up a new Microsoft business unit across the full complement of services and solutions around Microsoft technologies. The new unit leverages a global talent will significantly assist in growing its operations pool of over 50,000 engineers trained on Microsoft technologies. TCS is also a Microsoft Azure Expert MSP, in Australia. which ensures the highest quality of Azure service and builds on its status as a Microsoft Gold Competency Partner.

UNISYS Overview Caution Headquartered in Pennsylvania, Unisys provides cloud, infrastructure management and security solutions to Unisys is strong in public sector organizations and the banking industry but may government and commercial sectors. With 2019 revenues of US$2.026 billion and 22,000 global employees, lack in-depth vertical industry expertise in other commercial sectors. the company has operations in more than 40 countries. Managed services for cloud is one of its four strategic priorities for 2021. In January 2021, Unisys received funding from Australia's Defence and National Security Communities to research the use of AI and ML for detecting deceitful and persuasive writing.

Strengths

Multi-cloud and hybrid services: Unisys Australia offers the CloudForte™ cloud management platform to manage multi-cloud environments, including hybrid/ private cloud and multiple public clouds. It has developed these services in response to the growing prevalence of multi-cloud environments in Australian businesses.

Strong security know-how: With a significant customer base in the government, defense and banking sectors, Unisys has extensive experience providing services in environments with exacting security compliance requirements. It can provide secure Azure environments at different levels of compliance. 2021 ISG Provider Lens™ Leader Virtual desktop as a service: Unisys has deployed the VMWare virtual desktop on Azure in its own business and for clients to support the urgent shift to a work-from-home model necessitated by the COVID-19 crisis. The virtual desktop environment provided a fast and secure solution that protected their customers’ critical data. Unisys has a good combination of Azure skills AI-based service operations: Unisys provides predictive and proactive solutions to efficiently identify and and security expertise in the Australian market to remedy issues. support the management of Azure environments with exacting security requirements.

WIPRO Overview Caution Wipro is a leading global IT, consulting and business process services provider headquartered in Bangalore, As a large, global managed services organization, Wipro’s evolution path for innova- India. It has about 180,000 employees placed across six continents. Wipro and Microsoft’s working relationship tions and new developments can sometimes move at a slower pace compared with spans more than two decades. In Australia, the company provides end-to-end managed services support for all smaller and more nimble providers. the IaaS and PaaS services of Azure. Its key vertical markets in Australia include retail and wholesale, banking and insurance, manufacturing, IT, telco and media, government, education, utilities and energy.

Strengths

Data center migration and cross-industry focus: In Australia, Wipro has a significantly strong infrastructure and cloud management services practice with an emphasis on data center migration. It is continuing to leverage its cross-industry focus and success with key clients in segments such as retail groceries. It sees a significant number of opportunities in the public sector and insurance domains in the region.

Fast-evolving Azure client base: Globally, Wipro has been responsible for the migration of more than 53,000 virtual machines. Over the past year, it has doubled the number of active customers on Azure and has witnessed a more than 400 percent increase in trainings and certifications. 2021 ISG Provider Lens™ Leader

Strong and evolving AI and IoT focus: Wipro’s Azure strategy in Australia encompasses a move toward increasing AI and IoT implementations in areas such as water utilities. In the IoT space, wearables will be an Wipro is evolving to become a strong Azure MSP important focus over the next two years as part of a cloud-to-edge strategy. provider in the IoT space in Australia. Its move into wearables, particularly, strengthens its industry position in this segment.

RISING STAR: LAB3 Overview Caution Founded in 2017, Australia-based LAB3 provides managed services for Azure, with a focus on developing pro- Despite already establishing a robust local presence with strong local talent, LAB3 is prietary IP in core verticals such as construction, mining and utilities. Its key Azure solutions include Fourpoint, still relatively inexperienced. While industries such as online financial services offer an IoT & analytics solution for manufacturing, and SensorMine, an IoT and data platform for the mining sector. huge potential, LAB3 will need a few major wins to penetrate overseas markets. The company is also targeting highly regulated industries such as financial services, utilizing Azure scaffolding as code. On its future roadmap is AV Point backup Terraform for automation.

Strengths

Strong niche focus with a strong partner base: LAB3 can leverage multiple partners with niche specialty services in industries, including construction and mining, to provide advanced support.

High caliber of local staff: The company has established a team of Australia-based technology leaders in cloud, DevOps and software-defined networks. It also has industry specialists in its core markets of construction, mining and utilities.

Fast-emerging specialist in financial services: LAB3 is currently developing a new banking-as-a-service 2021 ISG Provider Lens™ Rising Star platform for an online bank. The platform will offer white-label bank services and enable business partners to natively provide full-service banking and payments to their clients. LAB3 is a fast-emerging Australian niche specialist with a growing global focus. It has strong expertise in manufacturing and mining.

RISING STAR: MACQUARIE TELECOM Overview Caution Macquarie Telecom Group Limited is an ASX-listed Australian company that provides telecom, cloud computing, Macquarie Telecom has made impressive inroads with its new Azure business data center, government and cybersecurity services. It has offices in Sydney, Melbourne, Canberra, Brisbane in a short time. However, it will still need more customer wins over the next two and Perth. It caters to both enterprise and government sectors and owns and operates three data centers years with the growing competition from both local and global managed service in Sydney and Canberra. Macquarie Telecom recently launched its Azure business, which builds upon the providers. company’s 18 years of experience in providing mission-critical cloud/hosting services to Australian businesses.

Strengths

Launch of Azure business gaining strong market momentum: Macquarie Telecom launched its Microsoft Azure business in early 2019 and signed a strategic agreement with Microsoft in February 2020. The cloud business unit now offers public cloud services in addition to VMware-powered private cloud services. The company can now support Azure workloads running in Australia or offshore and can provide services to manage Azure services alongside its existing managed hybrid IT services.

Highly recognized as an Australian MSP: In 2020, Macquarie Telecom won the Managed Services Innovation of the Year award at the Global Telecom Awards. The award recognized Macquarie Telecom’s consistent net 2021 ISG Provider Lens™ Rising Star promoter score (NPS) of +84, one of the highest in Australia. Macquarie Telecom also recently became the first Australian company to win Best Customer Experience (CX) of the Year award. Macquarie Telecom’s new Microsoft Azure

Breadth of industry client base for Azure implementations: For over two years, Macquarie Telecom has business complements its cloud, hosting, data been working closely with Microsoft to provide Azure managed services to numerous customers, including center and telco divisions and also enables it to global independent software vendors (ISVs) and financial services, health, education and construction bring a public cloud into its managed hybrid IT organizations. Since signing the new Microsoft agreement, the company has made further inroads into a range of additional industries, such as fintech, hospitality and manufacturing. services environment.

Methodology ISG Provider Lens™ Quadrant Report | April 2021

METHODOLOGY The research study “2020 ISG Provider Lens™ Microsoft Ecosystem 2021” analyses the relevant software vendors/service providers in the Australian market, based on a multi-phased research and analysis process and positions these providers based on the ISG Research methodology.

The study was divided into the following steps:

1. Definition of 2020 ISG Provider Lens™ Microsoft Ecosystem 2021, Australia 5. Detailed analysis and evaluation of services and service documentation market based on the facts and figures received from providers and other sources.

2. Use of questionnaire-based surveys of service providers/vendor across all 6. Use of the following key evaluation criteria: trend topics − Strategy & vision Innovation 3. Interactive discussions with service providers/vendors on capabilities and use − Brand awareness and presence in the market cases − − Sales and partner landscape 4. Use of ISG’s internal databases and advisor knowledge and experience − Breadth and depth of portfolio of services offered (wherever applicable) − Technology advancements

Craig Baty, Author Distinguished Analyst Distinguished analyst and author Craig Baty has extensive research and thought leadership experience in the Asia Pacific and Japan ICT markets. Craig is Principal and Founder of DataDriven, an Asia Pacific-based research and advisory firm that is an ISG Research partner. Craig has over 30 years of executive and board-level experience in the ICT industry, including as a Group VP and Head of Gartner Research AP/J, CEO of Gartner Japan, Global VP Frost & Sullivan, EGM Marketing and CTO Fujitsu ANZ, GM Marketing Strategy and Alliances at BT Syntegra Australia, and more recently as VP Global Strategy and VP Digital Services in Fujitsu Tokyo HQ. As a well-known ICT commentator and analyst, Craig has written more than 200 research pieces and presented at over 1,500 events globally. He is also regularly quoted in regional media. Craig is actively involved in the ICT community as a board member of the Australian Information Industry Association (AIIA) and Vice Chair of the Australian Computer Society NSW (ACS). He is currently also pursuing a Doctor of Business Administration by Research (DBA) in the area of national culture and IT Strategic use and investment.

Srujan Akurathi, Enterprise Context and Global Overview Analyst Research Analyst Srujan Akurathi is an analyst at ISG and is responsible for supporting and co-authoring Provider Lens™ studies on Networking Services, Microsoft Ecosystem and Data Analytics. His area of expertise lies in SD-WAN, SDN transformation and managed WAN services. Srujan is responsible for developing content from an enterprise perspective and author the global summary report. He also collaborates with advisors and enterprise clients on ad-hoc research assignments and writes articles about niche technologies, market trends and insights.

Jan Erik Aase, Editor Director and Principal Analyst Jan Erik Aase is a director and principal analyst for ISG. He has more than 35 years of collective experience as an enterprise client, services provider, ISG advisor and analyst. Jan Erik has overall accountability for the ISG Provider Lens™ reports, including both the buyer-centric Archetype reports and the Quadrant reports focused on provider strengths and portfolio attractiveness. He sets the research agenda and ensures the quality and consistency of the Provider Lens™ team.

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including more than 75 of world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.