According to the ISG Provider Lens™ 2024 report, UK businesses are increasingly embracing private and hybrid cloud solutions over public cloud. This shift is driven by the growing need for improved security and regulatory compliance. The report highlights:
1. Businesses are turning to managed hosting services for data storage and business continuity.
2. UK data centres are strengthening their position as connectivity hubs, providing advanced communications infrastructure.
3. Large enterprises prioritize reliable operation, secure data storage, and high-performance network connectivity.
4. Medium-sized companies focus on comprehensive technical support and proactive maintenance.
5. Service providers adopt FinOps practices to improve costs while maintaining sustainability goals.
positive
Increasing adoption of private and hybrid cloud solutions by UK businesses Growing demand for managed hosting services that offer flexibility and multi-cloud connectivity Data centres are positioned as contact centres with advanced communications infrastructure Service providers are adopting FinOps practices to optimise costs and maintain sustainability
negative
Shift away from public clouds due to security and compliance concerns Rising energy costs impacting data center operations
07/18/2024 – 05:00 AM
ISG Provider Lens™ reports that UK businesses are moving away from on-premises environments and towards managed hosting services
LONDON–(BUSINESS WIRE)–UK businesses are looking beyond the public cloud and increasingly seeking services from private and hybrid cloud providers, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
The ISG Provider Lens™ 2024 Private/Hybrid Cloud – Data Center Services UK report finds that large and midsize enterprises are shifting their cloud environments away from public clouds and back to private clouds or a mix of the two. Among the factors driving this shift are increased needs for enhanced security and compliance with changing regulations, the ISG report says.
“Service providers can help mid-sized businesses develop these hybrid cloud strategies,” said Anthony Drake, ISG partner in Northern Europe. “They offer reduced deployment costs, disaster recovery solutions, and access to modern computing technologies such as serverless architecture, database as a service, and DevOps practices.”
Hybrid clouds aren’t the only alternative available to businesses seeking greater security and compliance, according to the ISG report. According to the report, UK businesses are gradually shifting their focus from on-premises environments to external services such as managed hosting for data storage and business continuity.
In addition to reducing the burden of operating a private data center while maintaining control over hosted data, managed hosting provides organizations with additional flexibility and features, such as multi-cloud connectivity, low-latency network connectivity, bare metal services, and platform-independent operating systems and database support, according to the ISG report.
The ISG report says UK data centres are positioning themselves as connectivity hubs. They provide access to advanced communications infrastructure such as fibre, dark fibre, Internet Exchange Points (IXPs) and submarine cables. In response to the growing demand for high speed, this provides UK organisations with low latency connectivity for both domestic and international connections, the report says.
“Large enterprises in the UK are looking for providers that can deliver reliable uptime, secure data storage and high-performance network connectivity,” said Jan-Eric Asse, Partner and Global Leader, ISG Provider Lens Research. “Mid-sized enterprises’ priorities tend to be towards comprehensive technical support, including 24/7 monitoring, rapid incident response and proactive maintenance that ensures maximum uptime and availability.”
The report also examines how service providers can adopt FinOps practices to improve costs while maintaining sustainability goals.
For more information on the private/hybrid cloud and data centre challenges facing UK businesses, including rising energy costs and data security concerns, and ISG’s advice for addressing them, see the ISG Provider Lens™ Focus Points Briefing here.
The 2024 ISG Provider Lens™ Private/Hybrid Cloud – UK Data Center Services report assesses the capabilities of 57 providers across four segments: managed services for large accounts, managed services for mid-sized businesses, managed hosting, and co-location services.
The report states that Fujitsu is the leader in three quarters, while Claranet, DXC Technology, Insono, Caidrill, Rackspace Technology and T-Systems were named leaders in two quarters each. Accenture/Accenture (Navisite), Atos, Capgemini, Computacenter, Digital Realty, Equinix, GlobalSwitch, HCL Tech, Hexaware, Infosys, LTI Mindtree, NTT GDC/NTT Global Data Centers, Pulsant, RedCentric, TCS, Telefonica Tech, TeleHouse, Unisys and Wipro were named leaders in one quarter each.
Additionally, Hexaware and Tech Mahindra were named Rising Stars — companies with a “promising portfolio” and “high future potential” as defined by ISG — in one quadrant each.
In customer experience, Green was named a global top performer in customer experience for 2024 among private/hybrid cloud data center partners. Green received the highest customer satisfaction ratings in the ISG Customer Survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.
The 2024 ISG Provider Lens™ Private/Hybrid Cloud – Data Center Services UK 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 provider assessment of its kind that combines data-driven empirical research and market analysis with the expertise and real-world observations of ISG’s global consulting team. Businesses will find a wealth of detailed data and market analysis to help guide the selection of the right sourcing partners, while ISG consultants use the reports to validate their market knowledge and make recommendations to ISG’s corporate clients. The research currently covers providers offering services globally, across Europe, as well as in the US, Canada, Mexico, Brazil, UK, France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information on ISG Provider Lens research, please visit this webpage.
About ISG
ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and consulting firm. As a trusted business partner to more than 900 clients, including more than 75 of the world’s 100 largest companies, ISG is committed to helping businesses, public sector organizations, and service and technology providers achieve operational excellence and accelerated growth. The company specializes in digital transformation services, including artificial intelligence and automation, cloud and data analytics; sourcing consulting; governance and managed risk services; network enterprise services; strategy and operations design; change management; and market intelligence and technology research and analysis. Founded in 2006 and headquartered in Stamford, Connecticut, ISG employs 1,600 digital transformation-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 market data. For more information, please visit www.isg-one.com.
You can view the original press release on businesswire.com: https://www.businesswire.com/news/home/20240718437970/en/
Press Contacts:
Sarah Yee, ISG
+44 7833 567868
Sarah.yi@isg-one.com
Will Thoritz, ISG
+1 203 517 3119
will.thoretz@isg-one.com
Source: Information Services Group, Ltd.
Instructions
Why are UK businesses moving towards private and hybrid cloud solutions?
UK businesses are turning to private and hybrid cloud solutions due to growing needs for enhanced security and compliance with changing regulations. This trend is seen across both large and mid-sized enterprises, as highlighted in the ISG Provider Lens™ 2024 report.
What are the benefits of managed hosting services for businesses in the UK?
Managed hosting services for UK organisations provide low deployment costs, disaster recovery solutions and access to modern computing technologies. They also offer added flexibility, multi-cloud connectivity, low-latency network connectivity, platform-agnostic operating systems and database support.
How are data centres located in the UK?
Data centres in the UK act as connectivity hubs. They provide access to advanced communications infrastructure such as fibre, dark fibre, Internet Exchange Points (IXPs) and submarine cables, providing UK organisations with low latency connectivity for both domestic and international communications.
What are the priorities of major UK companies when it comes to cloud services?
Large UK enterprises prioritise providers that can deliver reliable uptime, secure data storage and high-performance network connectivity for their cloud services.
How did Information Services Group (III) conduct this research into cloud services in the UK?
Information Services Group (III) conducted this research through its ISG Provider Lens™ study, which evaluates the capabilities of 57 providers across four quadrants: managed services for large accounts, managed services for mid-sized businesses, managed hosting, and co-location services.
