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Public Cloud Complexity Boosts Demand for Advanced Tools

Enterprises using multiple public clouds and cloud-native environments seek platforms for observability, cost management and security, ISG Provider Lens™ report says

Demand for public cloud-related solutions is rising as organizations seek tools to manage and optimize complex, multi-cloud environments, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2023 ISG Provider Lens™ global Multi Public Cloud Solutions report finds that many enterprises worldwide migrated some or all on-premises applications to multiple public clouds during the COVID-19 pandemic, either moving them as-is or transforming them into cloud-native architectures before migration. Companies are now growing more interested in cloud-native technologies for their modularity, agility, scalability and cost-effectiveness, which can help organizations meet fluctuating demand and shorter development timelines.

“Multi-cloud computing offers huge benefits but makes IT far more complex,” said Bernie Hoecker, partner, Enterprise Cloud Transformation leader, ISG. “Enterprises that have made the leap are adopting increasingly powerful tools to manage that complexity.”

With the help of multi-cloud service providers, companies are using new solutions to employ disruptive application development approaches, including serverless computing, composable architectures, DevSecOps and integration with container orchestration platforms such as Kubernetes, ISG says.

Cloud observability platforms are increasingly essential as multi-cloud complexity increases, the report says. The market for agent-based monitoring and security solutions is growing particularly fast as enterprises seek specialized and comprehensive endpoint scanning capabilities. Vendors are beginning to use AI and ML algorithms to identify blind spots, automatically fix problems and reduce false alerts.

Demand is also rising for FinOps solutions, which have become a standard part of enterprises’ public cloud strategies, ISG says. Vendors are introducing a wide range of new solutions to improve the tracking of cloud usage, impose accountability, reduce waste and cut costs. The most successful FinOps implementations include establishing a central FinOps team that standardizes processes and delegates decision-making to project teams.

“Cloud cost management is a concern that goes all the way to the top at many enterprises,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Companies are looking for independent software vendors that specialize in FinOps to better understand and optimize their use of cloud resources.”

Cloud-native, container-based architectures can also create major security vulnerabilities, including misconfigurations, so enterprises are integrating advanced security tools into their cloud environments. Many security platforms now use AI for automated, real-time access control and code validation, ISG says.

The report also explores other public cloud solution trends, including the growing role of open-source tools and new uses of observability data in security solutions.

For more insights into enterprises’ public cloud solution challenges and advice for addressing them, including utilizing infrastructure-as-code (IAC), see the ISG Provider Lens™ Focal Points briefing here.

The 2023 ISG Provider Lens™ global Multi Public Cloud Solutions report evaluates the capabilities of 66 providers across three quadrants: Multicloud FinOps Platforms, Cloud-Native Observability Solutions and Cloud-Native Security Platforms.

The report names VMware as a Leader in all three quadrants. It names Dynatrace and Sysdig as Leaders in two quadrants each. Apptio (Cloudability), Aqua Security, Cisco, CrowdStrike, DataDog, Flexera, Fortinet, HCLSoftware (MyXalytics), NetApp (Spot), New Relic, Orca Security, Palo Alto Networks and Splunk are named as Leaders in one quadrant each.

In addition, Elastic and Zscaler are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

A customized version of the report is available from Dynatrace.

The 2023 ISG Provider Lens™ global Multi Public Cloud Solutions 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., 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.

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 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 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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