More state, local and educational
organizations use the cloud to rein in costs and gain flexibility,
choosing Azure in many cases, ISG Provider Lens™ report
says
More U.S. public-sector organizations are turning to the cloud
for their core IT infrastructure, boosting demand for Microsoft
Azure and related services from ecosystem partners, according to a
new research report published today by Information Services Group
(ISG) (Nasdaq: III), a leading global technology research and
advisory firm.
The 2024 ISG Provider Lens™ Microsoft Cloud Ecosystem report for
the U.S. Public Sector finds that Azure is the de facto cloud
platform for a majority of state, local and educational (SLED)
entities. As these organizations strive to better serve
constituents despite shrinking IT resources, Azure is becoming
essential to productivity, communications, server and storage
functions at many agencies.
“Effective use of Azure allows public agencies to efficiently
provide services that have a positive impact,” said Nathan Frey,
partner and lead, ISG Public Sector, for the U.S. “Experienced IT
service providers play a key role in getting the most out of
Azure’s capabilities.”
SLED organizations are migrating to the cloud for several
benefits that are beyond the reach of their limited internal
resources, the report says. In the cloud, they can scale computing
power, networking and storage up and down as demand changes. They
also gain access to enhanced security, the agility to adopt new
technologies and the ability to more closely align their IT and
business strategies.
Rising cloud adoption partly reflects the U.S. public sector’s
growing focus on cybersecurity and compliance, ISG says. With
Azure, Microsoft is responding by moving toward a zero-trust
architecture, which continuously verifies access to enterprise
systems, and increasing investments to ensure Azure solutions
adhere to a growing array of data privacy and security
regulations.
Many state and local governments are also under pressure to
increase engagement with the public by offering constituents better
ways to communicate and access information, the report says. Azure
provides AI-powered chatbots, virtual assistants and sentiment
analysis tools to support these initiatives. Governments are also
using analytics and ML tools in Azure to identify issues, predict
demand and allocate resources.
SLED organizations also are migrating their SAP environments to
the cloud at an accelerating pace for better scalability and
security, lower costs and simplified maintenance, ISG says. This
has increased demand for SAP on Azure services from a large
ecosystem of providers. Agencies are also embracing Microsoft Power
Platform services, which enable more employees to quickly create
new applications through low-code/no-code methods.
“As Azure and its ecosystem evolve, the possibilities keep
expanding, even as many state and local agencies are still catching
up with private-sector cloud initiatives,” said Jan Erik Aase,
partner and global leader, ISG Provider Lens Research. “Service
providers with public-sector experience make it easier to chart the
best course.”
The report also explores other Azure ecosystem trends affecting
the U.S. public sector, including the growing use of Azure managed
services to solve cloud management challenges and the rising
importance of using provider services delivered from within the
U.S.
For more insights into the challenges faced by U.S. SLED
organizations, including skills shortages and the complexity of
moving data from legacy platforms to the cloud, see the ISG
Provider Lens™ Focal Points briefing here.
The 2024 ISG Provider Lens™ Microsoft Cloud Ecosystem report for
the U.S. Public Sector evaluates the capabilities of 31 providers
across four quadrants: Managed Services for Azure, Microsoft 365
Services, SAP on Azure Services and Power Platform Services.
The report names Accenture & Avanade, Cognizant, DXC
Technology, IBM, Infosys, Kyndryl, TCS and Wipro as Leaders in all
four quadrants. It names NTT DATA and Unisys as Leaders in three
quadrants each. Capgemini and Rackspace Technology are named as
Leaders in two quadrants each. Hexaware is named as a Leader in one
quadrant.
In addition, HCLTech is named as a Rising Star — a company with
a “promising portfolio” and “high future potential” by ISG’s
definition — in all four quadrants. Hexaware is named as a Rising
Star in one quadrant.
In the area of customer experience, Bechtle is named the global
ISG CX Star Performer for 2024 among Microsoft cloud ecosystem
providers. Bechtle earned the highest customer satisfaction scores
in ISG's Voice of the Customer survey, part of the ISG Star of
Excellence™ program, the premier quality recognition for the
technology and business services industry.
A customized version of the report is available from Unisys.
The 2024 ISG Provider Lens™ Microsoft Cloud Ecosystem report for
the U.S. Public Sector 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.
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 AI and 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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version on businesswire.com: https://www.businesswire.com/news/home/20240425516169/en/
Will Thoretz, ISG +1 203 517 3119 will.thoretz@isg-one.com
Julianna Sheridan, Matter Communications for ISG +1 978-518-4520
isg@matternow.com
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