More and more managed services from the cloud

More and more managed services from the cloud

The large public cloud providers are adding more and more managed service offerings to their portfolios. They are thus increasingly competing with classic managed service providers, especially in infrastructure and platform management.

This is reported in the new “ISG Provider Lens Public Cloud – Services & Solutions Report Germany 2021” by the Information Services Group (ISG). He has also observed that service providers are increasingly addressing medium-sized companies.

“The classic cloud market for Infrastructure-as-a-Service (IaaS) continues to grow rapidly, and not just because of the COVID pandemic,” says Heiko Henkes, Director and Principal Analyst at Information Services Group (ISG). “At the same time, integrated industry solutions from the cloud are on the rise.” Google and Microsoft are pioneers here, while AWS is currently catching up.

On the service provider side, the leading providers have further increased their lead. “The market leaders we analyzed are characterized above all by special skills in the areas of automation, artificial intelligence and cloud native. And if individual skills are missing, they are bought in,” Henkes continues. The number of mergers and acquisitions in the global IT services market has reached a new high in 2021. In addition, Indian service providers in particular are successfully penetrating the market for managed public cloud services.

According to the ISG analysts, acquisitions are, in addition to further training, also a way to compensate for the current shortage of skilled workers. In this way, combined with increased automation and the use of artificial intelligence, service providers are able to serve the rapidly growing demand. The providers would now differentiate themselves primarily through the degree of automation they have achieved, which is between 40 and 70 percent. The degree of automation is particularly high for infrastructure-related services such as the provision of computing power or network interfaces.

In the case of managed services from the cloud, hyperscalers have long been offering dedicated accreditations for managed service providers (MSPs) as part of their partner programs, the study continues. Many managed service contracts are currently associated with the migration of applications to innovative, standardized solutions.

In the “Managed Public Cloud Services for Large Accounts” sub-market, ISG examined a total of 25 providers, nine of which were able to position themselves as “Leaders” and one as a “Rising Star”.

The study “ISG Provider Lens™ Public Cloud – Services & Solutions Report Germany 2021” evaluates the services of 94 providers in seven market segments (quadrants): In addition to “Managed Public Cloud Services for Large Accounts”, these are “Consulting & Transformational Services for Large Accounts ”, “Consulting & Transformational Services for the Midmarket”, “Managed Public Cloud Services for the Midmarket”, “Hyperscale Infrastructure & Platform Services”, “SAP HANA Infrastructure Services” and “Secure Enterprise Filesharing Services”.

Consulting & Transformational Services

The ISG provider comparison not only records the use of the latest “cloud-native technology” in the transformation to a data-centric company. At the same time, this process is accompanied by a cultural change that requires appropriate change management. According to the study, the leading providers are supplementing this transformation with specific native cloud security offerings. Because the potential attack surfaces would differ significantly from what companies have been used to and have been able to protect.

Hyperscale Infrastructure & Platform Services

According to the ISG study, both large and medium-sized companies are currently looking for flexible and scalable infrastructures with which they can improve their competitiveness – especially since the change in the world of work with increasingly hybrid working models requires this. According to the study, the infrastructure service providers have long since adapted to these challenges. The IaaS offer includes all components such as server, network, storage and connectivity. In addition, the service providers, in cooperation with the cloud providers, provided hybrid or multi-cloud environments as required. With a platform-as-a-service (PaaS)-based development environment, apps could be created, tested and deployed quickly and easily in the cloud. In this way, IaaS and PaaS would grow together in the cloud. Containers are intended to ensure that applications can be developed more easily and quickly, and that they can be moved more easily to other environments, including those of other cloud providers.

SAP HANA infrastructure services

The acceptance of outsourcing SAP solutions to a service provider and having them operated by them is increasing not least because of the system changeover from ECC to SAP HANA. The ISG study names the following advantages in this regard: The user companies save their own infrastructure and personnel costs in their own data center. The provider takes over the operation of a SAP-certified platform and an infrastructure of secure, certified and redundant data centers. Such offers would be supplemented by almost all providers with a wealth of cloud services, which should further simplify operations and make them flexible and secure.

Secure Enterprise File Sharing Services

Due to the current change in working models, employees no longer work exclusively in their employer’s offices. In this case, the required documents and data must be stored on file-sharing platforms. One of the functionalities of the file-sharing service offers examined in the ISG study is the storage of business documents with access via desktop computers or mobile systems. In addition, companies use these platforms to synchronize data on-premises and in the cloud. According to ISG, leading file sharing-as-a-service offers also include a marketplace for the integration of third-party services such as social media or project management solutions.

The ISG provider comparison places T-Systems among the leaders in four quadrants, as well as CANCOM and Microsoft in three quadrants each. Accenture, Arvato Systems, Atos, AWS, Capgemini, Claranet, Deutsche Telekom, Google, IBM, NTT DATA and Wipro are leaders in two quadrants, while All for One Group, Axians, Box, Brainloop, BTC, Computacenter, doubleSlash, DRACOON, Dropbox, Infosys, IONOS Cloud, PlusServer, Rackspace Technology, Reply, Skaylink and TCS are each named as leaders in one quadrant.

In addition, the study designates Cloudreach, gridscale, Nextcloud, Nordcloud, Sopra Steria and Syntax as “Rising Stars” in one quadrant each. According to the ISG definition, these are companies with a “promising portfolio” and “great future potential”.

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