ISG Provider Lens™ 2024: A comparison of private and hybrid cloud providers

The "ISG Provider Lens™ Private/Hybrid Cloud - Data Centre Services 2024" study provides an insight into the landscape of private and hybrid cloud providers. This blog post summarises key findings and highlights the growing trend towards individualised and secure cloud solutions. It also analyses current market developments and provides recommendations for optimising private and hybrid cloud strategies.

Private and hybrid cloud providers - how to gain an overview

Private and hybrid cloud solutions are indispensable for the digital transformation of companies. The ISG Provider Lens™ study offers guidance in the diverse market of cloud providers. By systematically analysing and evaluating them, companies can find the right partner and thus reduce costs and further develop their IT infrastructure in a targeted manner.

The subdivision into market segments makes it easier to select providers that are precisely tailored to their own needs:

• Managed Services - Large Accounts
• Managed Services - Midmarket
• Managed Hosting - Large Accounts
• Managed Hosting - Midmarket
• Colocation Services - Large Account
• Colocation Services - Midmarket

The ISG Provider Lens™ study uses a clear methodology to evaluate the offerings of private and hybrid cloud providers.

Assessment approach of the ISG study: basics for provider analysis

The ISG study uses a standardised assessment framework. This takes into account empirical values, customer feedback and market research. This creates a comprehensive picture of provider strengths and weaknesses. The methodology is based on two dimensions: Offering Attractiveness and Competitive Strength, which are presented in a quadrant model. The attractiveness of the offer evaluates the portfolio of a provider. Competitive strength takes into account factors such as market success, influence and customer relationships. Together, they provide a meaningful picture of the market position.

Security meets flexibility: ideal candidates for private and hybrid clouds

For which companies is the support of private and hybrid cloud providers particularly relevant? According to the ISG study, private and hybrid cloud scenarios are particularly important for companies that attach particular importance to data security and individual compliance requirements. In addition, organisations that require flexible and scalable solutions to operate business-critical applications securely benefit from hybrid cloud models. Hybrid cloud strategies are also ideal for companies planning a gradual migration to the cloud. They enable a balance between the agile use of cloud services and maintaining control over certain IT systems.

How to find the right private and hybrid cloud provider - the example of Managed Services Midmarket

Managed services in particular offer medium-sized companies an opportunity to benefit from modern IT infrastructure without the burden of having their own large IT department. They provide access to specialised expertise in rapidly developing technological areas. At the same time, they minimise risks by adhering to current compliance standards.

The ISG study lists specific criteria for evaluating the performance of private/hybrid cloud providers with regard to managed services for SMEs:

• Own offering of services for private and hybrid clouds and data centre infrastructure (servers, middleware, storage and databases) without reliance on partners
• Delivery of services on-site at the customer's premises or remotely and preferably via shared service centres
• Experience with large-scale transition projects, including automation, consolidation, virtualisation and containerisation of data centres as well as cloud enablement
• Capability, act as an "extended arm" of the client organisation and participate in the design of blueprints, architecture frameworks and management roadmaps at the customer site
• Provide centralised orchestration/management of the hybrid IT infrastructure
• Prove appropriate certifications to ensure security and compliance at a local level

Of the 100 providers evaluated, 26 qualified in the Managed Services - Midmarket category, including ten companies in the Leader quadrant.

Recommendations for your private/hybrid cloud strategy

German companies, especially in the midmarket, are increasingly turning to private and hybrid cloud solutions to increase their agility and competitiveness. This development reflects the desire for a more flexible IT infrastructure that simultaneously reduces complexity and minimises risks. The trend makes it clear that cloud transformation is becoming increasingly nuanced and individualised. Based on the findings of the study, the following recommendations for action can be derived:

• Choosing strategic partnerships: When selecting private and hybrid cloud providers, pay attention to their experience in managing private and hybrid cloud infrastructures.
• Proactively modernise: Be prepared to invest in the modernisation of outdated IT infrastructures to minimise security risks and keep pace with modern application requirements.
• Keep a close eye on costs: Monitor your cloud spend and use strategies to save costs through cloud-native technologies.
• Rely on standardisation: Consider standardising your IT infrastructure to achieve cost savings, simplified scaling and increased automation.
• Review your cloud strategy: Take a close look at your existing cloud usage. Consider factors such as cost management and regulatory compliance to ensure sustainable and efficient cloud architectures in the long term.
• Rely on mid-market providers: Consider the benefits of mid-market providers such as personalised services, competitive pricing and rapid innovation that large system integrators may not be able to offer.

Private and hybrid cloud market in upheaval

The ISG study paints a dynamic picture of the cloud market: intense competition, technological innovation and the development of customised security and infrastructure solutions are increasingly shaping the industry landscape. A key trend is the automation of infrastructure operations in order to minimise manual intervention and increase efficiency. Medium-sized private and hybrid cloud providers in particular are gaining in importance as they offer competitive prices, innovative capabilities and customised solutions. Companies looking to drive their cloud transformation should closely monitor these developments and incorporate them into their planning.

As an experienced partner for SMEs, Claranet understands your challenges and offers customised private and hybrid cloud services.