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Enterprises Worldwide Look to Outsourcing Providers to Manage Private and Hybrid Clouds

ISG Provider Lens™ report sees a growing interest in sourcing amid the COVID-19 pandemic

Enterprises across the globe are turning to cloud outsourcing providers to manage their private and hybrid cloud infrastructure because of increasingly complex IT environments, according to a new report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2021 ISG Provider LensNext-Gen Private/Hybrid Cloud – Data Center Services & Solutions Global Report finds many enterprises focused on leveraging provider capabilities to control the cost of managing their private and hybrid clouds.

“Enterprises worldwide have realized that outsourcing their cloud infrastructure management is a great way to realign their IT systems with business objectives in the most cost-effective manner,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research.

Outsourcing cloud management offers several other benefits beyond cost containment, the report says. It gives companies access to specific IT skills they may not have, and it allows them to share resources such as engineers and security services at cloud facilities.

Global interest in outsourcing has been growing amid the COVID-19 pandemic. The most recent ISG Index™ shows spending on infrastructure-as-a-service (IaaS) climbed to a record $8.2 billion in the second quarter of 2021, up 41 percent year-over-year and 15 percent quarter-over quarter. Overall, global demand for IT and business services, at $19.1 billion in Q2, reached a new record for the third straight quarter, as enterprises accelerate their digital transformations and move to the cloud.

The ISG Provider Lens™ report notes that while many companies froze their outsourcing efforts at the start of the pandemic, others are planning to use outsourcing services for the first time in 2021.

The report sees steady global growth in the hyperconverged infrastructure (HCI) market. The digitization of enterprises is driving the convergence of physical and digital worlds and eliminating the large abstraction layer between hardware and software. Enterprises are using HCI for its high reliability, capacity and scalability and for its simplified monitoring and management capabilities. HCI also allows for better disaster recovery and offers independent compute capabilities.

In addition, the cloud management platform (CMP) market has changed significantly in recent years, the report says. Many of the management tasks that were formerly performed through the CMP can now be done easily with an individual cloud provider’s console. CMP, which was an essential feature previously, has now become a commodity, and hybrid cloud management vendors are expanding their features to offer the broadest range of tools to users.

The 2021 ISG Provider LensNext-Gen Private/Hybrid Cloud – Data Center Services & Solutions Global Report evaluates the capabilities of 29 providers across two quadrants: Hyperconverged Systems and Hybrid Cloud Management Platforms.

The report names HPE and VMware as Leaders in both quadrants and BMC, Cicso, Flexera, Morpheus Data, Nutanix and ServiceNow as Leaders in one.

In addition, CloudBolt and StarWind were named Rising Stars—companies with “promising portfolios” and “high future potential” by ISG’s definition—in one quadrant each.

Customized versions of the report are available from Morpheus Data and StarWind.

The 2021 ISG Provider LensNext-Gen Private/Hybrid Cloud – Data Center Services & Solutions Global Report 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., 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.

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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