A growing number of companies are pursuing complex cloud strategies, with service providers supplying critical capabilities, ISG Provider Lens™ report says

Enterprises in the U.S. are expanding their engagements with Amazon Web Services (AWS) and its ecosystem partners for greater cloud efficiency and economies of scale, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2023 ISG Provider Lens™ AWS Ecosystem Partners report for the U.S. finds that organizations are digitally transforming themselves to adapt to changing business and customer expectations and socioeconomic and geopolitical conditions, often using hybrid cloud and multi-cloud strategies. AWS, the leading hyperscaler among enterprises globally, is especially dominant in North America and continues to expand its reach in the region.

“Many U.S. enterprises are actively engaged in cloud migration and workload modernization projects,” said Bernie Hoecker, ISG partner and Enterprise Cloud Transformation leader. “Rising cloud adoption has swelled the ranks of AWS service providers.”

With hybrid and multi-cloud strategies, organizations can implement cloud solutions for a wide range of industry use cases and technological capabilities, the report says. These approaches allow them to efficiently integrate applications on platforms from different cloud providers using solutions such as serverless computing.

With the help of service providers, enterprise IT departments are using both public and private cloud infrastructure with hybrid cloud approaches and are taking advantage of different hyperscalers’ strengths with multi-cloud architectures, ISG says. At the same time, a growing number of technically mature companies are pursuing poly-cloud strategies, which allow business units to choose cloud solutions from different providers to meet specialized needs.

The complexity of many cloud strategies has made cloud operations and management increasingly important to organizations of all sizes in the U.S. and other regions, the report says. As enterprises tap into the growing array of offerings from AWS, many lack the infrastructure and skills to run them. They are seeking partners to deploy, manage and operate their cloud infrastructure for scalability, flexibility and business outcomes.

AWS is an increasingly popular platform for SAP workloads, especially in the U.S., as enterprises adopt SAP S/4HANA, ISG says. The impending end of support for SAP Business Suite 7 and ERP 6.0 are accelerating this move. Partnerships can be essential in these initiatives.

“Migrating large, mission-critical workloads is complex and takes a great deal of skilled labor,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Enterprises and providers are working closely with both AWS and SAP to ensure smooth transitions.”

The report also explores other AWS trends in the U.S., including the growing importance of advanced cloud cost controls and enterprises’ increasing interest in AWS solutions for sustainability.

For more insights into U.S. enterprise challenges related to AWS, including the need for clarity on the role of generative AI, and ISG’s advice for addressing them, see the ISG Provider Lens™ Focal Points briefing here.

The 2023 ISG Provider Lens™ AWS Ecosystem Partners report for the U.S. evaluates the capabilities of 48 providers across five quadrants: AWS Consulting Services, AWS Data Analytics and Machine Learning, AWS Managed Services, AWS Migration Services and AWS SAP Workloads.

The report names Accenture, Capgemini, Cognizant, Deloitte, HCLTech, Infosys, LTIMindtree, TCS and Wipro as Leaders in all five quadrants. It names Rackspace Technology and Tech Mahindra as Leaders in four quadrants each. DXC Technology is named as a Leader in three quadrants, and IBM and PwC are named as Leaders in two quadrants each. Genpact and Hexaware are named as Leaders in one quadrant each.

In addition, Kyndryl and Persistent Systems are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in three quadrants each. Hexaware, PwC, Quantiphi and Tech Mahindra are named as Rising Stars in one quadrant each.

Customized versions of the report are available from Agilisium, DXC Technology, Hexaware and Quantiphi.

The 2023 ISG Provider Lens™ AWS Ecosystem Partners report for the U.S. is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the 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 1,600 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.

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