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On Wed, 18 Dec, 12:03 AM UTC
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U.S. Firms Look to Public Clouds for AI Scale, Intelligence By Investing.com
As GenAI beckons, hyperscale infrastructure gives enterprises affordable access to essential hardware and tools, ISG Provider Lensâ„¢ report says STAMFORD, Conn.--(BUSINESS WIRE)--Enterprise adoption of AI technologies is the main driver of growing U.S. demand for public cloud services over the past year, according to a new research report published today by Information Services Group (ISG) (Nasdaq: NASDAQ:III), a leading global technology research and advisory firm. The 2024 ISG Provider Lensâ„¢ Multi Public Cloud Services report for the U.S. finds that organizations recognize both the transformative potential of AI-based applications and the high cost and complexity of developing and deploying them. AI " especially generative AI " requires expensive hardware and software, such as graphics processors and large language models (LLMs) that are not economical for enterprises to build on their own. Many are turning to cloud platforms for scalable, on-demand computing power, storage, tools and AI-specific services. AI and cloud computing have a close symbiotic relationship, said Anay Nawathe, ISG cloud delivery lead for the Americas. Increasing AI adoption in the coming years will create significant growth in the public cloud industry. GenAI is gaining traction at U.S. enterprises, but companies are still exploring it cautiously, ISG says. Most GenAI deployments are proofs of concept to better understand the technology's potential applications and broader implications. Enterprises are testing GenAI in several areas, including content creation and personalized marketing, but most customer-facing applications are not yet in production. Service providers are guiding clients through the early stages of this transformation. As U.S. enterprises deploy more AI-related workloads, they seek immediate cost savings to balance the growing demands of digital transformation with tight budgets, the report says. While public cloud infrastructure gives companies greater flexibility, it often leads to complex billing structures and unexpected costs if not managed effectively. FinOps practices and services are increasingly essential for properly allocating cloud resources within enterprises and minimizing underutilized assets. GreenOps models, which track both the cost and the carbon footprint of cloud infrastructure, are also growing in importance. Demand for consulting and transformation services has grown steadily over the past year as enterprises modernize their IT environments, shifting from monolithic systems to flexible, scalable multi-cloud and cloud-native solutions, the report says. Most large companies are seeking industry-specific solutions that optimize existing workloads. Midsize enterprises prioritize affordability and rapid deployment of outcome-focused cloud transformations. Managed services for large U.S. enterprises have advanced in the past year through the integration of AI-enabled automation and improved cloud optimization tools, ISG says. Large companies are seeking services to ease the complexity of managing multi-cloud environments. Midsize organizations favor providers that can help them manage their cloud infrastructure with low cost and minimal disruption. U.S. enterprises want cloud infrastructure that is ready for AI and complex workloads, said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. Well-designed multi-cloud solutions allow them to deploy applications across diverse environments with minimal overhead. The report also explores other public cloud trends in the U.S., including recent technology advancements by hyperscale cloud operators and the rising demand for scalable, flexible infrastructure for SAP HANA deployments. For more insights into the public cloud challenges facing U.S. enterprises, including the growing need for built-in cloud sustainability and the rising costs of VMware (NYSE:VMW) deployments, see the ISG Provider Lensâ„¢ Focal Points briefing here. The 2024 ISG Provider Lensâ„¢ Multi Public Cloud Services report for the U.S. evaluates the capabilities of 59 providers across seven quadrants: Consultation and Transformation Services " Large Accounts, Consultation and Transformation Services " Midmarket, Managed Services " Large Accounts, Managed Services " Midmarket, FinOps Services and Cloud Optimization, Hyperscale Infrastructure and Platform Services and SAP HANA Infrastructure Services. The report names Accenture (NYSE:ACN), Capgemini, HCLTech and Rackspace Technology (NASDAQ:RXT) as Leaders in three quadrants each. It names Accenture (Navisite), AWS, Cognizant (NASDAQ:CTSH), Deloitte, Google (NASDAQ:GOOGL), Hexaware, Hitachi (OTC:HTHIY) Digital Services, Infosys (NS:INFY), Kyndryl, Microsoft (NASDAQ:MSFT), Mphasis, TCS, Tech Mahindra (NS:TEML), Unisys (NYSE:UIS) and Wipro (NYSE:WIT) as Leaders in two quadrants each. DXC Technology (NYSE:DXC), IBM (NYSE:IBM), Microland, NTT DATA, Persistent Systems (NS:PERS) and UST are named as Leaders in one quadrant each. In addition, Brillio, Cognizant, LTIMindtree (NS:LTIM), NTT DATA and Persistent Systems are named as Rising Stars " companies with a promising portfolio and high future potential by ISG's definition " in one quadrant each. In the area of customer experience, Persistent Systems is named the global ISG CX Star Performer for 2024 among multi public cloud services providers. Persistent Systems earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellenceâ„¢ program, the premier quality recognition for the technology and business services industry. Customized versions of the report are available from Microland and Unisys. The 2024 ISG Provider Lensâ„¢ Multi Public Cloud Services report for the U.S. is available to subscribers or for one-time purchase on this webpage. About ISG Provider Lensâ„¢ Research The ISG Provider Lensâ„¢ 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, Mexico, 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, 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.
[2]
U.S. Firms Look to Public Clouds for AI Scale, Intelligence - Information Servs Gr (NASDAQ:III)
As GenAI beckons, hyperscale infrastructure gives enterprises affordable access to essential hardware and tools, ISG Provider Lensâ„¢ report says Enterprise adoption of AI technologies is the main driver of growing U.S. demand for public cloud services over the past year, according to a new research report published today by Information Services Group (ISG) III, a leading global technology research and advisory firm. The 2024 ISG Provider Lensâ„¢ Multi Public Cloud Services report for the U.S. finds that organizations recognize both the transformative potential of AI-based applications and the high cost and complexity of developing and deploying them. AI -- especially generative AI -- requires expensive hardware and software, such as graphics processors and large language models (LLMs) that are not economical for enterprises to build on their own. Many are turning to cloud platforms for scalable, on-demand computing power, storage, tools and AI-specific services. "AI and cloud computing have a close symbiotic relationship," said Anay Nawathe, ISG cloud delivery lead for the Americas. "Increasing AI adoption in the coming years will create significant growth in the public cloud industry." GenAI is gaining traction at U.S. enterprises, but companies are still exploring it cautiously, ISG says. Most GenAI deployments are proofs of concept to better understand the technology's potential applications and broader implications. Enterprises are testing GenAI in several areas, including content creation and personalized marketing, but most customer-facing applications are not yet in production. Service providers are guiding clients through the early stages of this transformation. As U.S. enterprises deploy more AI-related workloads, they seek immediate cost savings to balance the growing demands of digital transformation with tight budgets, the report says. While public cloud infrastructure gives companies greater flexibility, it often leads to complex billing structures and unexpected costs if not managed effectively. FinOps practices and services are increasingly essential for properly allocating cloud resources within enterprises and minimizing underutilized assets. GreenOps models, which track both the cost and the carbon footprint of cloud infrastructure, are also growing in importance. Demand for consulting and transformation services has grown steadily over the past year as enterprises modernize their IT environments, shifting from monolithic systems to flexible, scalable multi-cloud and cloud-native solutions, the report says. Most large companies are seeking industry-specific solutions that optimize existing workloads. Midsize enterprises prioritize affordability and rapid deployment of outcome-focused cloud transformations. Managed services for large U.S. enterprises have advanced in the past year through the integration of AI-enabled automation and improved cloud optimization tools, ISG says. Large companies are seeking services to ease the complexity of managing multi-cloud environments. Midsize organizations favor providers that can help them manage their cloud infrastructure with low cost and minimal disruption. "U.S. enterprises want cloud infrastructure that is ready for AI and complex workloads," said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. "Well-designed multi-cloud solutions allow them to deploy applications across diverse environments with minimal overhead." The report also explores other public cloud trends in the U.S., including recent technology advancements by hyperscale cloud operators and the rising demand for scalable, flexible infrastructure for SAP HANA deployments. For more insights into the public cloud challenges facing U.S. enterprises, including the growing need for built-in cloud sustainability and the rising costs of VMware deployments, see the ISG Provider Lensâ„¢ Focal Points briefing here. The 2024 ISG Provider Lensâ„¢ Multi Public Cloud Services report for the U.S. evaluates the capabilities of 59 providers across seven quadrants: Consultation and Transformation Services -- Large Accounts, Consultation and Transformation Services -- Midmarket, Managed Services -- Large Accounts, Managed Services -- Midmarket, FinOps Services and Cloud Optimization, Hyperscale Infrastructure and Platform Services and SAP HANA Infrastructure Services. The report names Accenture, Capgemini, HCLTech and Rackspace Technology as Leaders in three quadrants each. It names Accenture (Navisite), AWS, Cognizant, Deloitte, Google, Hexaware, Hitachi Digital Services, Infosys, Kyndryl, Microsoft, Mphasis, TCS, Tech Mahindra, Unisys and Wipro as Leaders in two quadrants each. DXC Technology, IBM, Microland, NTT DATA, Persistent Systems and UST are named as Leaders in one quadrant each. In addition, Brillio, Cognizant, LTIMindtree, NTT DATA and Persistent Systems are named as Rising Stars -- companies with a "promising portfolio" and "high future potential" by ISG's definition -- in one quadrant each. In the area of customer experience, Persistent Systems is named the global ISG CX Star Performer for 2024 among multi public cloud services providers. Persistent Systems earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellenceâ„¢ program, the premier quality recognition for the technology and business services industry. Customized versions of the report are available from Microland and Unisys. The 2024 ISG Provider Lensâ„¢ Multi Public Cloud Services report for the U.S. is available to subscribers or for one-time purchase on this webpage. About ISG Provider Lensâ„¢ Research The ISG Provider Lensâ„¢ 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, Mexico, 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) 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, 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20241217298720/en/ Market News and Data brought to you by Benzinga APIs
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A new ISG report reveals that AI adoption, particularly generative AI, is driving U.S. demand for public cloud services. Enterprises are leveraging cloud platforms for affordable access to AI infrastructure and tools.
The adoption of artificial intelligence (AI) technologies, particularly generative AI (GenAI), is fueling a significant increase in demand for public cloud services among U.S. enterprises. According to a new report by Information Services Group (ISG), organizations are recognizing the transformative potential of AI-based applications while grappling with the high costs and complexity of developing and deploying them in-house 12.
Enterprises are turning to cloud platforms to access the necessary hardware, software, and AI-specific services required for AI implementation. These resources, including graphics processors and large language models (LLMs), are often too expensive for companies to build and maintain independently. Public clouds offer scalable, on-demand computing power and storage, making AI technologies more accessible and affordable for businesses of all sizes 12.
While GenAI is gaining traction among U.S. enterprises, companies are approaching it with caution. Most current GenAI deployments are proofs of concept, as businesses seek to understand the technology's potential applications and broader implications. Testing is underway in areas such as content creation and personalized marketing, but customer-facing applications are largely still in development. Service providers are playing a crucial role in guiding clients through the early stages of this technological transformation 12.
As U.S. enterprises deploy more AI-related workloads, they are simultaneously seeking cost-saving measures to balance the demands of digital transformation with tight budgets. While public cloud infrastructure offers greater flexibility, it can also lead to complex billing structures and unexpected costs if not managed effectively 12.
To address these challenges, FinOps practices and services are becoming increasingly essential for proper allocation of cloud resources and minimization of underutilized assets. Additionally, GreenOps models, which track both the cost and carbon footprint of cloud infrastructure, are growing in importance as companies focus on sustainability 12.
The report highlights a steady growth in demand for consulting and transformation services over the past year. Enterprises are modernizing their IT environments, moving from monolithic systems to flexible, scalable multi-cloud and cloud-native solutions. Large companies are seeking industry-specific solutions to optimize existing workloads, while midsize enterprises prioritize affordability and rapid deployment of outcome-focused cloud transformations 12.
Managed services for large U.S. enterprises have seen significant advancements through the integration of AI-enabled automation and improved cloud optimization tools. Large companies are seeking services to simplify the management of multi-cloud environments, while midsize organizations favor providers that can help manage cloud infrastructure cost-effectively and with minimal disruption 12.
The ISG report evaluates 59 providers across various service categories. Companies like Accenture, Capgemini, HCLTech, and Rackspace Technology are named as leaders in multiple quadrants. The report also identifies rising stars such as Brillio, Cognizant, LTIMindtree, NTT DATA, and Persistent Systems, highlighting the competitive and dynamic nature of the public cloud services market 12.
U.S. federal agencies are pushing forward with hybrid cloud strategies, balancing modernization efforts with tight budgets. A new ISG report highlights the challenges and opportunities in this digital transformation journey.
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A new report from Information Services Group (ISG) reveals a growing trend among enterprises to adopt cloud-based unified AI and data platforms. This shift aims to enhance data management, improve AI capabilities, and drive digital transformation.
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A new report by Information Services Group (ISG) highlights the rapid adoption of generative AI by global enterprises, driven by the need for efficiency, innovation, and competitive advantage.
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Generative AI is driving significant changes in workplace transformation and application development in the UK and US, with organizations preparing for broader adoption while navigating challenges.
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A new report by ISG reveals that U.S. enterprises are increasingly adopting cloud-based solutions and AI technologies to improve customer experience in contact centers, with a shift towards outsourcing and exploration of generative AI.
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