COVID-19 Pandemic Pushes U.S. Enterprises to the Cloud

ISG Provider Lens™ report sees U.S. companies looking to service providers to assist them with a range of AWS-related functions

STAMFORD, Conn., Dec. 18, 2020 (GLOBE NEWSWIRE) -- Adoption of cloud-based IT has increased dramatically in the U.S. after the outbreak of the COVID-19 pandemic, with enterprises turning to service providers to help them move workloads to hyperscale providers like Amazon Web Services (AWS), according to a new report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2020 ISG Provider LensAWS – Ecosystem Partners Report for the U.S. finds pandemic-related disruptions in workforces, in supplier and customer relationships, and in business operations 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.”

According to the latest ISG Index™, global annual contract value (ACV) for the cloud-based as-a-service market—including both infrastructure-as-a-service (IaaS) and software-as-a-service (SaaS)—was up nearly 15 percent, to $24.4 billion, in the first nine months of 2020. The bulk of the growth came from IaaS, up nearly 20 percent, to $17.8 billion. In the Americas, as-a-service ACV was up 40 percent, to $13.3 billion, during the same period, with IaaS up 58 percent, to $8.9 billion.

In the past, the ISG Provider Lens report notes, many U.S. enterprises kept their large-scale, complex and customized enterprise software environments partially on premises, but the pandemic has pushed them toward moving most of their applications and databases onto AWS and other hyperscale platforms. The broad availability of affordable and adaptable container technologies such as Kubernetes and Docker have accelerated this move to the cloud.

The report also finds many AWS service providers moving beyond helping their customers adopt cloud technologies to helping them refine their digital business strategies, with a focus on improved business outcomes. These consulting engagements are leading to customer interest in change management, design thinking and DevOps.

In addition, U.S. enterprises are increasingly focused on data analytics and machine learning, as their work-from-anywhere environments are spurring a huge wave of data discovery, the report says. Business leaders are beginning to pay attention to what data exists across all parts of the enterprise, instead of in specific functional areas. 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.

Meanwhile, managed services providers for AWS are rapidly expanding into areas traditionally dominated by systems integrators, the report adds. The pandemic’s impact on cloud adoption and integration requirements has pushed MSPs into new areas, such as integration and security.

The 2020 ISG Provider LensAWS – Ecosystem Partners Report for the U.S. evaluates the capabilities of 65 providers across six quadrants: Consulting Services Providers, Data Analytics and Machine Learning, Internet of Things, Migration and Container Solutions, Managed Services Providers, and SAP Workloads.

The report names Accenture, Capgemini, Cognizant, Deloitte and Wipro as leaders in all six quadrants and DXC Technology and Infosys as leaders in five. IBM, Rackspace Technology and TCS are named leaders in four quadrants, and Tech Mahindra is named a leader in three. HCL and Hexaware are named leaders in two quadrants, and HPE, LTI, Mindtree, Mphasis, NTT DATA, PwC and Virtusa were named leaders in one.

In addition, LTI was named a Rising Star—companies with “promising portfolios” and “high future potential” by ISG’s definition—in three quadrants. Virtusa was named a Rising Star in two quadrants, and 2nd Watch, DXC Technology, Lemongrass Consulting, Mphasis and Tech Mahindra were named Rising Stars in one.

Customized versions of the report are available from Hexaware, Mphasis, Tech Mahindra and TO THE NEW.

The 2020 ISG Provider LensAWS – Ecosystem Partners Report for the U.S. 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 and Latin America, 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.

Starting this year, each ISG Provider Lens™ study will include a Global Summary to help enterprise subscribers better understand provider capabilities across all geographic markets covered by that study. All ISG Provider Lens™ reports also will now include an Enterprise Context feature to help executives quickly identify key insights related to their roles and responsibilities.

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

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