State, local and educational organizations
quickly adopt cloud to maintain services under post-COVID
realities, ISG Provider Lens™ report says
Most state and local governments in the U.S. are shifting
critical software to the cloud and outsourcing IT operations, a
major shift in strategy caused by pandemic-related disruptions and
other recent changes to the public sector, 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.S. public sector notes that state, local
and educational organizations are finding they must serve
constituents better at less cost or resort to delivering lower
levels and fewer types of services. Legacy IT systems are nearing
the end of life, IT staffing challenges are growing and
organizations face shrinking budgets. As a result, most state
governments, many schools and several major cities are moving from
early cloud environments to cloud-first strategies, ISG says.
“The public sector in the U.S. can no longer ignore the cloud,
because they are under so much pressure to do more with less staff
and funding,” said Nathan Frey, partner, ISG Public Sector. “ISG
expects a wave of cloud adoption that will continue through
2025.”
The COVID-19 pandemic was the trigger for much of this change,
the report says. The shift to working from home and the wave of
resignations that came with the disruption of work affected the
public sector more than most. Falling tax and licensing revenue
during the pandemic made the situation worse. Then, in late 2021,
special funding from the federal government made rapid digital
transformation a mandate at organizations that had not modernized
IT in decades.
Because they are far behind most private enterprises in using
the cloud, U.S. public sector institutions are often uneasy about
cloud transformation, ISG says. Many lack expertise in budgeting
and procurement for cloud services or perceive the cloud as not
secure enough for their needs. A small number of service providers
have the experience and knowledge of the public sector to offer
consulting services that help these clients plan and carry out
cloud projects.
Hyperscale cloud operators, along with their service provider
partners, are developing offerings tuned specifically for the
public sector, the report says. Agencies adopting cloud services
typically engage with more than one platform, which can make cloud
operations even more complex. These organizations commonly engage
with managed public cloud providers to make their cloud
environments function reliably and efficiently. ISG expects demand
for managed public cloud services to keep accelerating as public
sector cloud environments mature.
“Consulting and managed services are making public sector cloud
migration possible,” said Jan Erik Aase, partner and global leader,
ISG Provider Lens Research. “The leading providers now recognize
the need and potential in this market.”
The report also examines other public cloud trends in the U.S.
public sector, including the rise of cloud-based business process
outsourcing (BPO) and the role of providers in helping agencies
migrate SAP implementations to the cloud.
For more insights into the cloud challenges faced by U.S. public
sector agencies and advice on how to choose a service provider, see
the ISG Provider Lens™ Focal Points briefing here.
The 2022 ISG Provider Lens™ Public Cloud — Solutions and
Services report for the U.S. public sector evaluates the
capabilities of 35 providers across four quadrants: Consulting and
Transformation Services, Managed Public Cloud Services, Hyperscale
Infrastructure and Platform Services, and SAP HANA Infrastructure
Services.
The report names IBM as a Leader in three quadrants. It names
Accenture, AWS, Deloitte, Infosys, Microsoft, Rackspace Technology
and Unisys as Leaders in two quadrants each and Kyndryl, SAP, Tech
Mahindra and Zensar as Leaders in one quadrant each.
In addition, CGI is named as a Rising Star — a company with a
“promising portfolio” and “high future potential” by ISG’s
definition — in one quadrant.
A customized version of the report is available from Unisys.
The 2022 ISG Provider Lens™ Public Cloud — Solutions and
Services report for the U.S. Public Sector 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 800 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
www.isg-one.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20221208005115/en/
Will Thoretz, ISG +1 203 517 3119 will.thoretz@isg-one.com
Julianna Sheridan, Matter Communications for ISG +1 978-518-4520
isg@matternow.com
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