\nEnterprise 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<\/a>) (Nasdaq: III<\/a>), a leading global technology research and advisory firm.<\/p>\n
\nThe 2024 ISG Provider Lens\u2122 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 \u2014 especially generative AI \u2014 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.<\/p>\n
\n\u201cAI and cloud computing have a close symbiotic relationship,\u201d said Anay Nawathe, ISG cloud delivery lead for the Americas. \u201cIncreasing AI adoption in the coming years will create significant growth in the public cloud industry.\u201d<\/p>\n
\nGenAI 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\u2019s 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.<\/p>\n
\nAs 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.<\/p>\n
\nFinOps 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.<\/p>\n
\nDemand 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.<\/p>\n
\nManaged 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.<\/p>\n
\n\u201cU.S. enterprises want cloud infrastructure that is ready for AI and complex workloads,\u201d said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. \u201cWell-designed multi-cloud solutions allow them to deploy applications across diverse environments with minimal overhead.\u201d<\/p>\n
\nThe 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.<\/p>\n
\nFor 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 Lens\u2122 Focal Points briefing here<\/a>.<\/p>\n \nThe 2024 ISG Provider Lens\u2122 Multi Public Cloud Services report for the U.S. evaluates the capabilities of 59 providers across seven quadrants: Consultation and Transformation Services \u2014 Large Accounts, Consultation and Transformation Services \u2014 Midmarket, Managed Services \u2014 Large Accounts, Managed Services \u2014 Midmarket, FinOps Services and Cloud Optimization, Hyperscale Infrastructure and Platform Services and SAP HANA Infrastructure Services.<\/p>\n \nThe 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.<\/p>\n \nIn addition, Brillio, Cognizant, LTIMindtree, NTT DATA and Persistent Systems are named as Rising Stars \u2014 companies with a \u201cpromising portfolio\u201d and \u201chigh future potential\u201d by ISG\u2019s definition \u2014 in one quadrant each.<\/p>\n \nIn 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 Excellence\u2122 program<\/a>, the premier quality recognition for the technology and business services industry.<\/p>\n \nCustomized versions of the report are available from Microland<\/a> and Unisys<\/a>.<\/p>\n \nThe 2024 ISG Provider Lens\u2122 Multi Public Cloud Services report for the U.S. is available to subscribers or for one-time purchase on this webpage<\/a>.<\/p>\n About ISG Provider Lens\u2122 Research<\/b><\/p>\n \nThe ISG Provider Lens\u2122 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<\/a>.<\/p>\n About ISG<\/b><\/p>\n \nISG (Information Services Group) (Nasdaq: III<\/a>) 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\u2019s 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\u2014a 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\u2019s most comprehensive marketplace data. For more information, visit www.isg-one.com<\/a>.<\/p>\n View source version on businesswire.com: <\/span>https:\/\/www.businesswire.com\/news\/home\/20241217298720\/en\/<\/a><\/span><\/p>\n Press Contacts:<\/p>\n <\/b>Will Thoretz, ISG Julianna Sheridan, Matter Communications for ISG KEYWORDS:<\/b> Connecticut United States North America<\/p>\n INDUSTRY KEYWORDS:<\/b> Software Mobile\/Wireless Networks Internet Professional Services Electronic Design Automation Data Management Technology Artificial Intelligence Security Other Technology Consulting<\/p>\n<\/p>\n
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+1 203 517 3119
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will.thoretz@isg-one.com
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+1 978-518-4520
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isg@matternow.com<\/a><\/p>\n
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