Many Companies in the United Kingdom Are Interested in Making a Radical Transition to the Public Cloud

Many Companies in the United Kingdom Are Interested in Making a Radical Transition to the Public Cloud

Enterprises in the U.K. are increasingly turning to public clouds as part of digital transformations in the wake of supply chain and other challenges triggered by the COVID-19 pandemic, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2022 ISG Provider Lens™ Public Cloud – Solutions and Services report for the U.K. finds that companies facing high costs to maintain their own IT infrastructure, along with new requirements such as remote work, are rapidly adopting cloud services. Many enterprises are beginning to favor public clouds for better service pricing and security, systems development and expense management features, the report says.

“Large organizations in Britain have already grown comfortable with public clouds and continue to see more opportunities to use them for digital transformation,” said Anthony Drake, ISG director in the U.K. “More midmarket companies are now following the same path.”

Increasingly, enterprises in the U.K. are embarking on cloud transformations that include application modernization instead of performing simpler lift-and-shift migrations, the report says. Moving to a cloud-native model allows organizations to integrate new technologies and capabilities, including AI, containers, blockchain and improved security.

Consulting and transformation service providers in the U.K. are playing a central role in making these transformations possible, allowing clients to overcome challenges associated with assessing workloads, managing change, handling the IT skills shortage and navigating integration with existing infrastructure, ISG says.

Midmarket companies migrating to public clouds tend to favor providers with ready-to-use frameworks, local delivery capabilities and a good grasp of local cultural and operational environments, the report says. Many of these clients focus on middleware modernization, treating it as the first phase of cloud modernization.

Many enterprises in the U.K. are implementing multi-cloud environments to reduce dependence on a single cloud provider, ISG says. To operate these complex solutions, they are engaging with managed services providers with cloud-agnostic frameworks that include FinOps capabilities to monitor, control and allocate cloud costs. Enterprises are also moving toward sustainable, automation-centric operating models based on carbon-neutral clouds.

“Transformative cloud migrations let companies address their business requirements, re-engineer parts of their IT infrastructure and reduce technical debt,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “There is a growing landscape of service providers in the U.K. helping all types of organizations achieve these goals.”

The report also examines several other public cloud trends in the U.K., including the migration of SAP workloads to SAP S/4HANA on hyperscale public clouds and the rise of hyperscale infrastructure services that provide regular end-to-end infrastructure updates.

The 2022 ISG Provider Lens™ Public Cloud – Solutions and Services report for the U.K. evaluates the capabilities of 56 providers across six quadrants: Consulting and Transformation Services for Large Accounts, Consulting and Transformation Services for Midmarket, Managed Public Cloud Services for Large Accounts, Managed Public Cloud Services for Midmarket, Hyperscale Infrastructure and Platform Services, and SAP HANA Infrastructure Services.

The report names Claranet, Computacenter, Rackspace Technology and Tech Mahindra as Leaders in three quadrants each. It names Accenture, Atos, AWS, Capgemini, Coforge, Ensono, Fujitsu, Google, HCLTech, Hexaware, Infosys, Microsoft, TCS and Wipro as Leaders in two quadrants each. Cognizant, IBM and Unisys are named as Leaders in one quadrant each.

In addition, Kyndryl, N-iX and Rackspace Technology are named as Rising Stars – companies with a “promising portfolio” and “high future potential” by ISG’s definition – in one quadrant each.

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