U.K. Firms Look to Get More From Microsoft Cloud Estates

Enterprises in the U.K. are turning to service providers to help them optimize their Microsoft cloud estates and reduce their cloud costs, according to a new research report published by Information Services Group (ISG)  a leading global technology research and advisory firm.

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“Enterprises will be turning to GSIs that have specific industry experience instead of more generalized technology and system integrators.”

The 2023 ISG Provider Lens Microsoft Cloud Ecosystem report for the U.K. finds the combination of commoditized cloud services and a difficult economic environment have shifted enterprise focus to cloud costs, especially for energy usage, and the pricing of related services. Providers have responded by seeking to differentiate their offerings through industry expertise, FinOps capabilities and sustainability services.

“Elements of the Azure infrastructure are increasingly becoming commoditized,” said Anthony Drake, ISG director based in the U.K. “That’s made it more difficult for providers to stand out on delivery capabilities alone.”

Microsoft’s industry cloud offerings are continuing to grow in scale, complexity and variety, the ISG report says. They provide a set of solutions and capabilities designed to address customer needs and boost worker productivity across various industries — healthcare, manufacturing, retail, financial services, automotive, nonprofits and others.

ISG finds service providers are using these clouds as a base to offer proprietary tools and assets tailored to meet the needs of distinct industries and sectors. The right provider can help enterprises reduce their carbon emissions by optimizing Azure cloud, multicloud and hybrid infrastructures, the ISG report says. Application and data modernization services, which may include eliminating tool sprawl and consolidating databases, can also reduce overall energy consumption.

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Enterprises are seeking tools and solutions to help them contain cloud costs, the ISG report says. Approaches include FinOps offerings, increased use of automation, site reliability engineering (SRE) services as well as global delivery center capabilities, all of which can optimize support and development costs. In addition, some providers are offering AI-powered tools and dashboards that help enterprises measure the carbon footprints of their cloud estates more easily.

“The trend toward industry clouds looks unstoppable,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Enterprises will be turning to GSIs that have specific industry experience instead of more generalized technology and system integrators.”

The report also examines low code/citizen developer offerings, including ready-made templates, CoE development, best-practice guidance, and low-code workshops.

The 2023 ISG Provider Lens Microsoft Cloud Ecosystem report for the U.K. evaluates the capabilities of 49 providers across five quadrants: Managed Services for Azure, Microsoft 365 Services, SAP on Azure Services, Dynamics 365 Services and Power Platform Services.

The report names Accenture & Avanade, DXC Technology, HCLTech and TCS as Leaders in all five quadrants, while Capgemini, Fujitsu and Wipro are named as Leaders in four quadrants each. Cognizant and Hexaware are named as Leaders in three quadrants each. Eviden/Atos and Infosys are named as Leaders in two quadrants each, while Computacenter and EY are named as Leaders in one quadrant each.

In addition, Computacenter is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants. Hexaware and Mastek are named as Rising Stars in one quadrant each.

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