New Report Reveals Massive Company Migration to Cloud Services

December 18, 2020 by Sara Wilkerson

A new report from Information Services Group, a leading global technology research and advisory firm, reveals that cloud-based information-technology use increased dramatically as a result of the COVID-19 pandemic that forced companies to transition to work-at-home environments. Cloud providers like Amazon Web Services are among the hyperproviders that companies have turned to the most in recent months. 

The 2020 ISG Provider Lens AWS – Ecosystem Partners Report examines how the pandemic has disrupted workforce areas such as supplier and customer relationships, as well as business operations that have accelerated digital transformation efforts overall, including cloud adoption. 

“The core goal for many enterprises in 2020 has been ‘more digital, more quickly,’” said Jan Erik Aase, director and global leader, ISG Provider Lens Research.  

“The scale of cloud adoption and use witnessed before 2020 is relatively minor compared to what most enterprises and providers are now experiencing.” 

Prior to 2020, the report notes that most companies had their proprietary data and software systems on their premises, with, “as many as 60% of their enterprise clients have yet to initiate any significant remote work or work-from-anywhere (WFA) capability.” 

As a result of the pandemic’s disruption, ISG reports a substantial growth in the cloud-based-as-a-service market, which, combined with infrastructure-as-a-service and software-as-a-service technologies, has grown nearly 15%, or $24.4 billion, from January to November of this year.  

Aside from mass use of Amazon’s cloud service provider, Amazon Web Services, companies have also turned to more affordable cloud computing providers like Kubernetes and Docker

In addition to providing general cloud services, cloud providers have helped businesses refine their digital business strategies via consulting services. According to ISG, these consulting services have led to greater interest in changes in management, design thinking and DevOps

In an effort to manage the influx of data discovery from cloud-based usage, companies have turned to data analytics and machine learning to better understand how data can impact and improve their businesses.  

“Business leaders are beginning to pay attention to what data exists across all parts of the enterprise, instead of in specific functional areas,” states an ISG press release on the report. 

“With this new holistic focus on enterprise data, including data generated by a growing range of IoT devices, enterprises are seeking AWS service providers that can help them with data analytics.” 

The growth of cloud adoption has also spurred expansions in cloud providership in the areas of cloud integration and security, a move that has pushed managed service providers into new unheard-of territory. 

“The impact of COVID-19 on cloud adoption and integration requirements has pushed MSPs farther into system integrator territory,” states the ISG report. 

The report elaborates further stating, “The leaders in our study recognize the changing MSP reality, and are investing in more skills, expanding their roles with AWS, and are acquiring more technology and tools providers.” 

In addition to noting the changing landscape in workforce integration in cloud use, the report also highlights key leaders out of the 65 cloud providers that were evaluated in ISG’s cloud study. 

Companies such as IBM, Deloitte, Hexaware, Mphasis and more were recognized by ISG based on six potential categories: Consulting Services Providers, Data Analytics and Machine Learning, Internet of Things, Migration and Container Solutions, Managed Services Providers, and SAP Workloads. 

“We are honored to be recognized by ISG and are proud that our efforts and services have been recognized across the US, and this recognition will act as a stimulus for us to continue innovating and strengthening our product portfolio and technology solutions for our existing as well as the potential clients,” states Nitin Rakesh, CEO of Mphasis. 

Rakesh continued, “Mphasis serves many marquee customers across the globe and our focus is to build an ecosystem to empower our clients to harness their potential and maximize their capabilities in a digitally advanced environment.” 

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