U.K. Demand for Public Cloud Services Grows Even as Overall IT Market Has Declined

ISG Provider Lens™ report sees increasing interest in IaaS offerings among U.K. enterprises

LONDON, Dec. 01, 2020 (GLOBE NEWSWIRE) -- Demand for public cloud services is expected to accelerate growth in the U.K. IT sector, even after recent declines due to the COVID-19 pandemic, according to a new report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2020 ISG Provider LensPublic Cloud – Solutions and Services Report for the U.K. finds that while some IT demand has declined this year, especially in the area of traditional managed services, demand for public cloud services is growing. Large enterprises are moving to the cloud faster than their smaller counterparts, but even small and medium-sized companies are showing increasing interest in infrastructure-as-a-service (IaaS) offerings.

“U.K. businesses are steadily adopting a cloud-first approach, and a growing number of companies can foresee a time when they will move a large majority of their IT to the cloud,” said Bryn Barlow, partner and head of ISG North Europe.

The report sees growing demand for public cloud services in the U.K. to support the ongoing shift to remote working due to the pandemic, even as managed services may lag behind. Companies in the U.K. and elsewhere in Europe are looking to cloud services to help them automate work and business processes that are needed in remote-work scenarios.

Enterprises also are seeing the power of cloud services and solutions to address consumer needs, the report says. Many enterprises in the U.K. are focused on a multi-cloud strategy and on building cloud-native solutions. They are seeking service providers that can deliver the most value for their IT investment and want the ability to move their data and avoid vendor lock-in.

U.K. enterprises frequently want to use more than one hyperscaler because each one has particular strengths related to vertical solutions, pricing and other factors. However, enterprises see some barriers to a multi-cloud setup, including orchestrating their workloads. Many customers are turning to service providers to help them manage multi-cloud environments.

The report sees many companies interested in IaaS, even though some large enterprises haven’t been able to fully eliminate their depreciated hardware assets and move completely to the cloud. Many enterprises continue to operate in hybrid cloud and on-premises IT environments.

The growth in public cloud adoption in the U.K. is also due to cloud-native application development and the increasing use of containerization and microservices technologies for applications development and deployment, the report says.

The 2020 ISG Provider LensPublic Cloud – Solutions and Services Report for the U.K. evaluates the capabilities of 52 providers across seven quadrants: Consulting and Transformational Services for Large Accounts; Consulting and Transformational Services for the Midmarket; Governance, Risk and Compliance Services; Managed Public Cloud Services for Large Accounts; Managed Public Cloud Services for the Midmarket; SAP HANA Infrastructure Services, and Hyperscale Infrastructure and Platform Services.

The report names Rackspace Technology as a leader in three quadrants, and Accenture, Atos, AWS, CANCOM, Capgemini, Claranet, Cloudreach, Computacenter, Fujitsu, HCL, Hexaware, IBM, Infosys, Lemongrass Consulting, Microsoft, TCS and Wipro as leaders in two. Cognizant, Deloitte, DXC Technology, Ensono, EY, Google, KPMG, PwC and Unisys are named as leaders in one quadrant.

In addition, Mindtree was named a Rising Star—a company with a “promising portfolio” and “high future potential” by ISG’s definition—in two quadrants. Claranet, Coforge, Computacenter, DXC Technology and Ensono were named Rising Stars in one quadrant each.

Customized versions of the report are available from AWS and CANCOM.

The 2020 ISG Provider LensPublic Cloud – Solutions and Services Report for the U.K. 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 and Latin America, as well as in the U.S., Germany, Switzerland, the U.K., France, the Nordics, Brazil and Australia/New Zealand, 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.

Starting this year, each ISG Provider Lens™ study will include a Global Summary to help enterprise subscribers better understand provider capabilities across all geographic markets covered by that study. All ISG Provider Lens™ reports also will now include an Enterprise Context feature to help executives quickly identify key insights related to their roles and responsibilities.

About ISG

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 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 1,300 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.


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