German Firms Using Multicloud Approach to Gain Flexibility

The cloud services market in Germany is expanding rapidly, driven by digital transformations aimed at business growth and improving customer experience, 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 Lenstm Multi Public Cloud Services report for Germany finds many German companies are setting up hybrid or multicloud environments and engaging with more than one cloud services provider. These companies recognize the vendor lock-in practices of some public cloud providers can leave little room for negotiation and lead to higher costs, the ISG report says.

"German firms have gained added flexibility to negotiate usage prices by working with more than one hyperscaler," said Matthias Paletta, ISG director, technology modernization, based in Germany. "That has made the cloud services market larger and more competitive."

ISG research indicates almost three quarters of public cloud customers worldwide use a multicloud environment, and that trend is expected to continue.

Even in a competitive market, the complexity of cloud environments can still make it difficult to keep costs under control. According to the ISG report, service providers can play an important role here, as they have many years of experience managing cloud infrastructures and assets and can support companies with efficient cost management. One of the most useful tools in the provider toolkit is FinOps, ISG says.

The importance of FinOps to optimize cloud costs has grown significantly in recent years, the ISG report says. In a comparatively short time, FinOps has established itself as an integral part of every managed services contract, ISG says.

FinOps frameworks analyze and forecast usage, pricing and financial impact. Service providers can use FinOps tools to gain visibility into cloud resources, capacity utilization and costs, the report says. They often use financial dashboards and cost analysis tools for a more transparent view of variable costs associated with cloud providers, the ISG report says.

"Cost optimization is paramount," said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. "Enterprises are relying on FinOps to save costs and better control their expenditure by identifying unused resources and using reserved or spot instances."

The report also examines how some providers are setting up specialized training programs to close the gap between the supply and demand for cloud expertise.

The 2023 ISG Provider Lenstm Multi Public Cloud Services report for Germany evaluates the capabilities of 94 providers across eight quadrants: Consulting and Transformation Services for Large Accounts, Consulting and Transformation Services for the Midmarket, Managed Services for Large Accounts, Managed Services for the Midmarket, FinOps Services and Cloud Optimization, Hyperscale Infrastructure and Platform Services, SAP HANA Infrastructure Services and Secure Enterprise Filesharing Services.

The report names Accenture/Accenture (Wabion), Arvato Systems, CANCOM, Capgemini, HCLTech and Microsoft as Leaders in three quadrants each, while AWS, Claranet, Deutsche Telekom GK, Google, Infosys, Kyndryl, NTT DATA, Rackspace Technology, TCS, T-Systems and Wipro are named as Leaders in two quadrants each. All for One Group, Atos, Axians, Box, Brainloop, DRACOON, Dropbox, Eviden, FTAPI, IBM/IBM (Nordcloud), IONOS, PlusServer, Reply and Syntax are named as Leaders in one quadrant each.

In addition, Syntax is named as a Rising Star ? a company with a "promising portfolio" and "high future potential" by ISG's definition ? in two quadrants, while DATAGROUP, idgard, OVHcloud, Randstad Digital, Skaylink and STACKIT are named as Rising Stars in one quadrant each.

Customized versions of the report are available from CANCOM, DRACOON, IONOS, Randstad Digital, Skaylink, STACKIT and T-Systems.

The 2023 ISG Provider Lenstm Multi Public Cloud Services report for Germany is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lenstm Research

The ISG Provider Lenstm 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.