Public Cloud – Solutions & Services comparing provider ...

Public Cloud – Solutions & Services Germany 2020

November 2020

QuadrantReport

A research report comparing provider strengths, challenges and competitive differentiators

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ISG Provider Lens™ delivers leading-edge and actionable research studies, reports

and consulting services focused on technology and service providers’ strengths and

weaknesses and how they are positioned relative to their peers in the market. These

reports provide influential insights accessed by our large pool of advisors who are

actively advising outsourcing deals as well as large numbers of ISG enterprise clients

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Information Services Group Inc. is solely responsible for the content of this report.

Unless otherwise cited, all content, including illustrations, research, conclusions,

assertions and positions contained in this report were developed by, and are the sole

property of Information Services Group Inc.

The research and analysis presented in this report includes research from the ISG

Provider Lens™ program, ongoing ISG Research programs, interviews with ISG advisors,

briefings with services providers and analysis of publicly available market information

from multiple sources. The data collected for this report represents information that

ISG believes to be current as of September 2020, for providers who actively participated

as well as for providers who did not. ISG recognizes that many mergers and acquisitions

have taken place since that time, but those changes are not reflected in this report.

All revenue references are in U.S. dollars ($US) unless noted.

The lead authors for this report are Heiko Henkes, Wolfgang Heinhaus and Jonathan

Siefke. The research analyst is Katharina Kummer and the data analyst is Vijaykumar

Goud. The enterprise context analyst is Katharina Kummer and global overview analyst

is Prakash N. The quality and consistency advisors are Richard Chang and Rajib Datta.

About this Report

ISG Provider Lens™ Quadrant Report | November 2020

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© 2020 Information Services Group, Inc. All rights reserved. Reproduction of this publication in any form without prior permission is strictly prohibited. Information contained in this report is based on the best available and reliable resources. Opinions expressed in this report reflect ISG’s judgment at the time of this report and are subject to change without notice. ISG has no liability for omissions, errors or completeness of information in this report. ISG Research™ and ISG Provider Lens™ are trademarks of Information Services Group, Inc.

1 Executive Summary

5 Introduction

21 Consulting and Transformational Services for Large Accounts

29 Consulting and Transformational Services for Midmarket

35 Governance, Risk and Compliance Services

39 Managed Public Cloud Services for Large Accounts

48 Managed Public Cloud Services for Midmarket

55 Secure Enterprise Filesharing Services

60 SAP HANA Infrastructure Services

65 Hyperscale Infrastructure and Platform Services

70 Methodology

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11

ISG Provider Lens™ Quadrant Report | November 2020 Section Name

1111

Executive Summary

The partnerships of service providers with hyperscalers have become even more

important. In addition to a partnership level at the highest level, service providers

also quickly acquire competence certifications equivalent to a seal of approval

and demonstrate that the service provider has acquired expert knowledge in the

transformation in this specific area (for example, migration or DevOps) or technology

(for example,, SAP). Given the increasing demand for public cloud services, often driven

by the need for elasticity, service providers continued to take advantage of training and

certification courses during the COVID-19 pandemic to increase the level of collaboration

for their customer needs. Service providers also develop industry-specific transformation

skills in order to use accelerators to serve specific vertical industries quickly and

adequately in compliance with their industry compliance and guidelines.

public cloud hyperscaler infrastructure and platform services are offered in Germany by

the top global providers such as AWS, Microsoft (Azure) or Google with the Google cloud

Platform (GCP) and others such as Alibaba, IBM, Oracle or OVH. In addition, there are also

local offers of scalable public cloud resources such as those from the hands of IONOS,

PlusServer (pluscloud) or the Open Telekom cloud from Deutsche Telekom.

A broad survey has revealed a clear trend: Companies agree that savvy consulting

and managed services are critical to the success of digital transformation. Finding and

retaining experienced specialist staff is a particular challenge, which in the course of the

required speed, often leads to the involvement of external partners in the form of IT

service providers. This is made clear by the companies that say, “we need the support of a

partner in managing risks and compliance issues.”

EXECUTIVE SUMMARYISG observes an accelerated introduction of cloud computing using a hybrid and often

multi-cloud approach in which the public cloud and the associated architecture principles

play a dominant role. The investments made at present in cloud computing lay the digital

foundation of a company – a crucial component in the entire digital transformation. In

addition to the increasing use of multiple public cloud providers – currently an average

of 2.5 providers – it is important for service providers to take public cloud partnerships

much more seriously and intensify them accordingly in order to bring customers closer to

individual platform features and create added value.

Working in remote locations has fuelled the demand for functional, increasingly vertical

SaaS and business intelligence solutions. Customers are increasingly moving towards

optimization and cost reduction across vertical areas, such as through analytics in retail or

the general acceleration of digital solutions in the financial sector. These moves are about

understanding individual customers and their demand and leading companies away from

gut decisions to data-driven decision-making processes.

With present environment highly uncertain and dictated by the coronavirus, companies

are striving to introduce the latest cloud services as quickly as possible; a top use case is

the cloud-based remote workstation. It should be noted that many public cloud strategies

have already been predefined and are now being rolled out owing to the pressure to keep

the business going. As a consequence, enterprise governance, risk and compliance (GRC)

models must be changed and adapted to hybrid or public clouds. This costs time and

money and only works with experts who are familiar with contracts and in some cases,

industry-specific regulations and who can make changes with regard to the business.


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ISG Provider Lens™ Quadrant Report | Juli 2019

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ISG Provider Lens™ Quadrant Report | November 2020 Executive Summary

Consulting & Transformation Services

During this time, companies of almost all sizes and industries are forced to promote

innovations and adapt new business practices, being as agile as start-ups. A common

denominator that has emerged is customer experience management. Customer needs

and their satisfaction are, therefore, more important than ever for business success. The

changing market is determined by fast-moving and individual customer requirements.

In order to comply with these, it requires clever use of the most modern cloud-native

technologies for the transformation to a data-centric company, which also mean a cultural

change, and thus, require appropriate change management.

Companies have to change their organisational structure and acquire methods such

as design thinking, SCRUM, and thus, small-scale sprint work cycles in order to meet

customer requirements and exploit new IT delivery models and operating models for

themselves.

In addition, challenges and risks arise from the tension between agility and security.

The end-to-end agility enablement of the software development and maintenance or

governance process is particularly crucial. The manual adoption of application code

through development, testing, production configuration, code deployment, and data

sharing usually becomes a bottleneck.

Native cloud security offerings are necessary to protect an attack surface that is vastly

different from what companies are traditionally used to managing. This additional

complexity of the security requirements often requires special software and services.

Incidents in the past have shown that security requirements of their Kubernetes clusters

can come as a surprise even for the technically most well-equipped companies.

Core applications of user companies are often proprietary or monolithic and/or cannot be

easily migrated to a virtualised/container-based environment or microservice-compliant

public cloud via lift and shift with regard to the licensing model – re-engineering or

breaking up of applications or the dependent workloads is costly and requires middleware

and developer experts, who are rare. Breaking up mainframe applications or migration

from SAP to AWS, Microsoft Azure or GCP is also very popular in this case.

Leading providers for large customers include: Accenture, Arvato Systems, Atos, DXC

Technology, Capgemini, Computacenter, NTT DATA and T-Systems. Cognizant was able to

qualify as a Rising Star.

Leading providers for mid-tier businesses include: All for One Group, Axians, Deutsche

Telekom, CANCOM and Reply. Claranet was able to qualify as a Rising Star.

Governance, Risk and Compliance Services

For a long time, concerns about data protection slowed the introduction of cloud services

into the European market. For some time, however, it has been observed that more and

more companies are making the decision to outsource their infrastructure elements

or entire applications to the cloud. In course of the journey to the cloud, especially

in highly regulated markets and industries, such as the financial service sector, there

are some obstacles which need to be overcome. Governance, risk and compliance

(GRC) should not be missing in a comprehensive and well-planned cloud strategy. A

large number of environment variables must be taken into account. The integration of

industry-specific standards is not yet a major problem for most companies; the regulation

is mostly industry-specific. The survey of the participants in this study revealed that

companies often have different maturity levels in GRC implementation. This extends

Executive Summary

from implementation of the industry-specific regulations to national, international and

European regulations, such as the GDPR, and is rounded off by the correct technical

implementation of the public cloud Services, which is in compliance with the rules. It

can be observed that the service providers who carry out the technical implementation

are also commissioned with Consulting Services relating to the technical assurance of

compliance for these cloud Services. In most cases, the auditing and certification are the

responsibility of the large management consultancies. These have just upgraded in the

area of risk evaluation, assessment and mitigation. In addition to extensive frameworks

for rule compliance, the consultants have followed suit with automated tools and

implemented artificial intelligence. Right at the forefront and the companies positioned as

leaders in this study are the “Big 4,” which consist of Deloitte, EY, KPMG and PwC.

Managed Public Cloud Services

The focus of the operational outsourcing of infrastructures, platforms and, increasingly,

even that of applications, rests on cost optimization through automation and, at the

same time, on reducing complexity through the managed service provider. It is not

uncommon for service providers to develop cloud management platforms (CMPs) to meet

these requirements. For customers, saving one to two FTEs by means of outsourcing of

operations is not unrealistic. In addition, the option of shifting company resources to

core activities, and thus, activities with a direct impact on the business, is also lucrative.

As the new world gets used to working from home as well, it has become even more

tempting for companies to outsource their cloud management and focus on building and

developing innovative solutions for their customers. Service providers leverage DevOps

and Infrastructure-as-Code (IaC) practices along with artificial intelligence-enhanced

automation and self-healing with pre-configured API integration capabilities to efficiently

manage and integrate cloud infrastructures. hyperscalers offer Dedicated Managed Service

Provider (MSP) accreditations as part of their affiliate programs to ensure that managed

service providers know exactly what they are doing. Many managed service engagements

go hand in hand with migrations of applications for initial optimization or standardization. In

this regard, it is important in every customer relationship to synchronise dev and ops teams,

to find individual update, and thus, release cycles, and to put software and apps at the

center of the digital transformation without neglecting their operation. In order to support

the continuous delivery pipeline (and the concept of approval on request, the system must

be designed for low-risk component or service-based delivery including lean approval

processes and recovery scenarios. The principle of “fix forward or roll back” applies here.

An IT service provider is often involved in the process, due to a lack of specialized staff;

these providers themselves are often faced with the challenge of finding and retaining

experienced specialists for the secure operation of the containers or serverless components

in Dev(Sec)Ops mode. Therefore, providers of dev services and pps services are under

pressure to develop cooperative approaches that combine the best skills from both worlds

in order to provide the opportunity for short sprints in close cooperation with customers

without causing reduction in availability.

Leading providers for large customers include: Accenture, Arvato Systems, Atos, Deutsche

Telekom, DXC, Capgemini, Rackspace Technology and Wipro. Infosys qualified as a

Rising Star.

Leading providers for mid-tier businesses include: CANCOM, Claranet, Deutsche Telekom

and PlusServer.



33


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ISG Provider Lens™ Quadrant Report | Juli 2019

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ISG Provider Lens™ Quadrant Report | November 2020 Executive Summary

Secure Enterprise Filesharing Services

Collaborative work on important documents and processes in modern companies is

essential in today's times. Instead of local computers or an internal Intranet, the files are

stored on servers in server clusters that are spread around the world. The data is stored

centrally in the data center of the cloud provider and can be accessed from anywhere with

any device. Data is accessed via browser or login screen. The only requirement is a working

internet connection.

Leading providers include: Box, Brainloop, Citrix, d.velop, DRACOON, double Slash, Dropbox

and Microsoft; Owncloud was positioned as the Rising Star.

SAP HANA Infrastructure Services

With the SAP S/4 HANA platform in the cloud, workloads can be simplified; secure basic

operation is guaranteed in redundant data centers. High flexibility, scalability at any time,

servers, processors and databases certified by SAP, the use of existing applications or the

selection of pre-configured applications from SAP partners offer the user a wide range that

is not possible from their on-premise environment.

Leading providers include: AWS, BTC, Cancom, Google, IBM, Microsoft and T-Systems.

Hyperscale Infrastructure & Platform Services

The range of services is constantly expanding and offers customers great added value. The

ability to execute the workload at any location further increases flexibility. The customer

can decide whether the processing should be carried out in the cloud, in the customer’s

own data center or in a colocation data center. The hardware and software environments

are uniform in all instances and ensures seamless operation. Server performance is

improved by acceleration-optimised processors, not least due to new tools such as AI and

ML, which cause computation-intensive workloads. IaaS and PaaS services are growing

together more and more, and are being presented in a quadrant for the first time. IaaS

(Infrastructure as a Service) provides on-demand infrastructure functions. Enterprise cloud

Providers can provide different clouds which can be adapted to customer requirements

and can include hybrid, multiple public or multiple private clouds. PaaS (Platform as a

Service) offers help with the creation, operation and monitoring of applications. The aPaaS

market offering includes application-centric services, low-code/no-code development

and test scenarios – all based on public clouds or variations of hosted private clouds. The

market segment of PaaS outweighs the IaaS share, although it can be observed that this

sub-segment is growing rapidly and a plus of 24% was forecast for 2020.The growth is

attributed to the demands of modern digital workloads and applications that require an

infrastructure that traditional data centers cannot meet.

Leading providers include: AWS, Deutsche Telekom, Google, IBM, Microsoft and Red Hat;

the rising star of this quadrant is IONOS.


55


Einleitung

Definition The increasing use of the public cloud in companies and the maturity level

of the cloud industry have a major influence on companies as well as IT

service providers and business models; it is important to implement digital

initiatives, and thus, prevent the systems from becoming obsolescent. In

view of the widespread adoption of the as-a-service model, companies must

continuously evaluate cloud services and IT providers worldwide.

As ISG observes, the strong demand for digital transformation is

driving global contracts for cloud products and cloud services, including

Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS). Further

effects of the COVID-19 pandemic are still uncertain due to a possible

and increasingly likely second wave of infections. The number of larger

transactions will continue to decline as customers focus on business

resilience and operational issues. According to the ISG Index forecasts for

EMEA, the market for managed services will shrink by around 7.5% in 2020,

while the as-a-service market will grow by around 11%.

Introduction

Simplified illustration

Public Cloud – Solutions and Services 2020

Consulting and Transformational Services for Large Accounts

Consulting and Transformational Services for Midmarket

Governance, Risk and Compliance Services Managed Public Cloud Services for large Accounts

Managed Public Cloud Services for Midmarket Secure Enterprise Filesharing Services

SAP HANA Infrastructure Services Hyperscale Infrastructure and Platform Services

Source: ISG 2020


66

Definition (cont.)

The quantitative increase in as-a-service indicates a shift towards and preference for

digital technologies to reduce costs, increase productivity, improve responsiveness to

business needs, improve service to end users and ultimately drive innovation.

The ISG Provider Lens™ study offers IT decision makers:

� Presentation of the strengths and weaknesses of the relevant providers.

� Differentiated positioning of providers based on competitive strength and portfolio

attractiveness.

� View of multiple markets including global, US, Germany, Switzerland, UK, France,

Nordics and Brazil.

The study thus provides an essential basis for decisions on positioning, relationships

and go-to-market considerations. ISG advisers and corporate customers also use

information from these reports to evaluate their current and potential new

provider relationships.

IntroductionISG Provider Lens™ Quadrant Report | November 2020

The report, Public Cloud – Solutions & Services for Germany supports buyers in examining their

cloud transformation strategies and the performance of the corresponding service providers in

numerous regions. Corporate customers will also benefit from the study, as it builds on ISG's

extensive experience as a consultant for sourcing contracts worldwide, as well as ISG's knowledge

and information from relevant contract databases, regional market research, and expertise in

technological ecosystems and innovation.

This study includes reports from six quadrants on the topic of cloud service models. Regional

coverage depends on factors such as provider participation in the survey, their responses, and

relevance; therefore, not all quadrants are necessarily dealt with within the individual regions, but

this may change in studies conducted in the future. In total, reports are offered for the following

geographic regions: global, U.S., U.K., Germany, Switzerland, Nordics, France and Brazil.

Overall, this study deals with the following quadrants:

Scope of the Study


77

Definition (cont.)

� In the Consulting & Transformation Services quadrant, the providers of

consulting and migration services for public cloud infrastructures and platforms are

evaluated, primarily AWS, Google Cloud Platform (GCP) and Microsoft Azure. The

quadrant is divided into the two target group markets of mid-tier companies and

large companies.

� The Governance, Risk and Compliance Services quadrant evaluates consulting firms

that offer various frameworks, policies, processes, and functions to ensure that

enterprise cloud workloads run in a secure and compliant environment regardless

of location.

� The Managed Public Cloud Services quadrant includes companies that offer

professional services or managed services for public clouds such as AWS, GCP and

Microsoft Azure. The quadrant is divided into the two target group markets of

mid-tier companies and large companies.

IntroductionISG Provider Lens™ Quadrant Report | November 2020

� The Secure Enterprise Filesharing quadrant evaluates independent software vendors (ISVs)

or SaaS providers who offer a service for secure storage and access to business-related

documents in a SaaS model.

� The SAP HANA Infrastructure Services quadrant evaluates cloud infrastructures that are best

suited for hosting of the SAP software portfolio, with a focus on SAP S/4HANA workloads and

large HANA databases.

� In the Hyperscale Infrastructure & Platform Services quadrant, those vendors or service

providers are assessed who provide virtual computing resources, middleware and platform

services such as microservices and runtime engines in a multi-client-capable and highly elastic

public cloud.


88

ISG Provider Lens™ Quadrant Report | November 2020 Introduction

The ISG Provider Lens™ quadrants were created using an evaluation matrix containing four segments, where the providers are positioned accordingly.

Provider Classifications

Leader

The "Leaders" among the vendors/

providers have a highly attractive

product and service offering and a

very strong market and competitive

position; they fulfill all requirements

for successful market cultivation.

They can be regarded as opinion

leaders, providing strategic impulses

to the market. They also ensure

innovative strength and stability.

Product Challenger

The "Product Challengers" offer a

product and service portfolio that

provides an above-average cover-

age of corporate requirements, but

are not able to provide the same

resources and strengths as the

Leaders regarding the individual

market cultivation categories. Often,

this is due to the respective vendor’s

size or their weak footprint within

the respective target segment.

Market Challenger

"Market Challengers" are also

very competitive, but there is still

significant portfolio potential and

they clearly lag behind the Leaders.

Often, the Market Challengers

are established vendors that

are somewhat slow to address

new trends, due to their size and

company structure, and therefore

have some potential to optimize

their portfolio and increase their

attractiveness.

Contender

"Contenders" are still lacking mature

products and services or sufficient

depth and breadth of their offering,

while also showing some strengths

and improvement potentials in their

market cultivation efforts. These

vendors are often generalists or niche

players.


99


Each ISG Provider Lens™ quadrant may include a service provider(s) who ISG believes has a strong potential to move into the leader’s quadrant.

Provider Classifications (cont.)

Rising Star

"Rising Stars" are usually Product Challengers with high future potential. Companies that receive the Rising Star award have a promis ing portfolio, including the required roadmap and an adequate focus on key market trends and customer requirements. Rising Stars also have excellent management and understanding of the local market. This award is only given to vendors or service providers that have made ex treme progress towards their goals within the last 12 months and are on a good way to reach the leader quadrant within the next 12 to 24 months, due to their above-average impact and innovative strength.

Not In

This service provider or vendor was not included in this quadrant as ISG could not obtain enough information to position them. This omission does not imply that the service provider or vendor does not provide this service. In dependence of the market ISG positions providers according to their business sweet spot, which can be the related midmarket or large accounts quadrant.


1010


Public Cloud – Solutions & Services - Quadrant Provider Listing 1 of 9

Introduction

Consulting and Transformational Services for Large

Accounts

Consulting and Transformational

Services for Midmarket

Governance, Risk and Compliance

Services

Managed Public Cloud Services for

Large Accounts


Midmarket

Secure Enterprise Filesharing

Services

SAP HANA Infrastructure

Services

Hyperscale Infrastructure and Platform Services

*um (Orange Business Services) 4 Not In 4 Not in 4 Not in 4 MC 4 Not in 4 Not in 4 Not in 4 Not in

7P 4 Not In 4 PC 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in

Accenture 4 L 4 Not in 4 PC 4 L 4 Not in 4 Not in 4 Not in 4 Not in

Adacor 4 Not In 4 Not in 4 Not in 4 Not in 4 C 4 Not in 4 Not in 4 Not in

adlon 4 Not In 4 C 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in

Alfresco 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 PC 4 Not in 4 Not in

Alibaba 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 C 4 C

All for One Group 4 Not In 4 Leader 4 Not in 4 Not in 4 C 4 Not in 4 Not in 4 Not in

AllCloud 4 Not In 4 PC 4 Not in 4 Not in 4 C 4 Not in 4 Not in 4 Not in

Allgeier ES 4 Not in 4 Not in 4 Not in 4 C 4 Not in 4 Not in 4 Not in 4 Not in

Arvato Systems 4 L 4 Not in 4 Not in 4 L 4 Not in 4 Not in 4 Not in 4 Not in

Atos 4 L 4 Not in 4 Not in 4 L 4 Not in 4 PC 4 PC 4 Not in

4 L – Leader / 4 PC – Product Challenger / 4 C – Contender / 4 MC – Market Challenger / 4 RS – Rising Star


1111


Public Cloud – Solutions & Services - Quadrant Provider Listing 2 of 9Consulting and

Transformational Services for Large

Accounts




Services


Large Accounts


Midmarket


Services


Services


Avanade 4 Not in 4 MC 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in

AWS 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 L 4 L

Axians 4 Not in 4 L 4 Not in 4 Not in 4 PC 4 Not in 4 Not in 4 Not in

BearingPoint 4 MC 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in

Bechtle 4 Not in 4 MC 4 Not in 4 Not in 4 MC 4 Not in 4 Not in 4 Not in

beck et al. 4 Not in 4 Not in 4 Not in 4 Not in 4 C 4 Not in 4 Not in 4 Not in

Box 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 L 4 Not in 4 Not in

Brainloop 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 L 4 Not in 4 Not in

BT 4 Not in 4 Not in 4 Not in 4 C 4 Not in 4 Not in 4 Not in 4 Not in

BTC 4 Not in 4 Not in 4 C 4 Not in 4 PC 4 Not in 4 L 4 Not in

CANCOM 4 Not in 4 L 4 C 4 Not in 4 L 4 Not in 4 L 4 Not in

Capgemini 4 L 4 Not in 4 PC 4 L 4 Not in 4 Not in 4 Not in 4 Not in



1212


Public Cloud – Solutions & Services - Quadrant Provider Listing 3 of 9Consulting and

Transformational Services for Large

Accounts




Services


Large Accounts


Midmarket


Services


Services


CenterDevice 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 PC 4 Not in 4 Not in

CenturyLink 4 Not in 4 Not in 4 Not in 4 C 4 Not in 4 Not in 4 Not in 4 C

CGI 4 Not in 4 C 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in

Citrix 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 L 4 Not in 4 Not in

Claranet 4 Not in 4 RS 4 Not in 4 Not in 4 L 4 Not in 4 Not in 4 Not in

Cloudreach 4 Not in 4 Not in 4 Not in 4 PC 4 Not in 4 Not in 4 Not in 4 Not in

CloudSigma 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 C

Coforge 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 C

Cognizant 4 PC 4 Not in 4 Not in 4 PC 4 Not in 4 Not in 4 Not in 4 Not in

Computacenter 4 L 4 Not in 4 Not in 4 PC 4 Not in 4 Not in 4 Not in 4 Not in

Ctera 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 C 4 Not in 4 Not in

d.velop 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 L 4 Not in 4 Not in



Accounts




Services


Large Accounts


Midmarket


Services


Services


Datagroup 4 Not in 4 Not in 4 Not in 4 Not in 4 C 4 Not in 4 PC 4 Not in

DataOne 4 Not in 4 C 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in

Deloitte 4 C 4 Not in 4 L 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in

Deutsche Telekom 4 Not in 4 L 4 Not in 4 Not in 4 L 4 Not in 4 Not in 4 Not in

Devoteam Alegri 4 C 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in

Digital Ocean 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 C

direkt gruppe 4 Not in 4 PC 4 Not in 4 Not in 4 PC 4 Not in 4 Not in 4 Not in

doubleSlash 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 L 4 Not in 4 Not in

DRACOON 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 L 4 Not in 4 Not in

Dropbox 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 L 4 Not in 4 Not in

DXC 4 L 4 Not in 4 Not in 4 L 4 Not in 4 Not in 4 Not in 4 Not in

Exoscale 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 C



1313




Accounts




Services


Large Accounts


Midmarket


Services


Services


EY 4 Not in 4 Not in 4 L 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in

Fujitsu 4 PC 4 Not in 4 Not in 4 PC 4 Not in 4 Not in 4 Not in 4 Not in

Giant Swarm 4 Not in 4 Not in 4 Not in 4 C 4 Not in 4 Not in 4 Not in 4 Not in

Global Access 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 C

Google 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 MC 4 L 4 L

Hexaware 4 C 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in

HighQ 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 C 4 Not in 4 Not in

IBM 4 L 4 Not in 4 Not in 4 L 4 Not in 4 Not in 4 L 4 L

Infosys 4 PC 4 Not in 4 Not in 4 RS 4 Not in 4 Not in 4 Not in 4 Not in

INS Systems 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 C 4 Not in

IONOScloud 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 RS



1414




Accounts




Services


Large Accounts


Midmarket


Services


Services


KPMG 4 C 4 Not in 4 L 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in

Kreuzwerker 4 Not in 4 C 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in

Logicalis 4 Not in 4 Not in 4 Not in 4 Not in 4 C 4 Not in 4 Not in 4 Not in

Logicalis (Orange Networks) 4 Not in 4 PC 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in

LTI 4 Not in 4 Not in 4 C 4 PC 4 Not in 4 Not in 4 Not in 4 Not in

Materna 4 MC 4 Not in 4 C 4 C 4 Not in 4 Not in 4 Not in 4 Not in

Microfocus 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 PC 4 Not in 4 Not in

Microsoft 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 L 4 L 4 L

Mindtree 4 PC 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in

Mphasis 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 C 4 Not in

Netfiles 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 C 4 Not in 4 Not in



1515




Accounts




Services


Large Accounts


Midmarket


Services


Services


netlution 4 C 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in

Nextcloud 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 PC 4 Not in 4 Not in

Nordcloud 4 Not in 4 PC 4 Not in 4 PC 4 Not in 4 Not in 4 Not in 4 Not in

NTT DATA 4 L 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in

NTT Group 4 Not in 4 MC 4 Not in 4 Not in 4 PC 4 Not in 4 Not in 4 Not in

Oracle 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 PC

OVHcloud 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 C

ownCloud 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 RS 4 Not in 4 Not in

PlusServer 4 Not in 4 Not in 4 Not in 4 Not in 4 L 4 Not in 4 C 4 C

PwC 4 MC 4 Not in 4 L 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in



1616




Accounts




Services


Large Accounts


Midmarket


Services


Services


QSC 4 Not in 4 C 4 Not in 4 Not in 4 C 4 Not in 4 PC 4 Not in

Rackspace Technology 4 RS 4 Not in 4 Not in 4 L 4 Not in 4 Not in 4 PC 4 Not in

ratiokontakt 4 Not in 4 Not in 4 Not in 4 Not in 4 C 4 Not in 4 Not in 4 Not in

Red Hat 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 L

Reply 4 Not in 4 L 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in

root360 4 Not in 4 Not in 4 Not in 4 C 4 Not in 4 Not in 4 Not in 4 Not in

SAP 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 PC 4 Not in

ScaleUp Technologies 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 PC

Software One (Comparex) 4 Not in 4 MC 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in

SoftwareONE 4 Not in 4 Not in 4 Not in 4 C 4 Not in 4 Not in 4 Not in 4 Not in

Sopra Steria 4 PC 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in



1717




Accounts




Services


Large Accounts


Midmarket


Services


Services


Strato 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 C 4 Not in 4 Not in

Syntax (FIT) 4 Not in 4 C 4 Not in 4 Not in 4 C 4 Not in 4 Not in 4 Not in

TCS 4 PC 4 Not in 4 Not in 4 PC 4 Not in 4 Not in 4 Not in 4 Not in

TeamDrive 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 PC 4 Not in 4 Not in

Tech Mahindra 4 C 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in

tecRacer 4 C 4 Not in 4 Not in 4 C 4 Not in 4 Not in 4 Not in 4 Not in

T-Systems 4 L 4 Not in 4 Not in 4 L 4 Not in 4 Not in 4 L 4 L

Unisys 4 Not in 4 Not in 4 Not in 4 PC 4 Not in 4 Not in 4 Not in 4 Not in

Vodafone 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 Not in 4 C 4 C

Wipro 4 PC 4 Not in 4 Not in 4 L 4 Not in 4 Not in 4 Not in 4 Not in



1818



Public Cloud – Solutions & Services Quadrants

2020

Executive Summary

ISG has noted that the focus of companies is increasingly shifting from Lift & Shift or simple Workload shift to long-term application modernization, which is why Re-architecture, Code Reviews and Cloud-Native environments will also be on the rise in Germany.

IT executives should read this report to better understand the relative strengths and weaknesses of Consulting and Transformation Service providers and to drive digital transformation in their organization.

Software development and technology leaders should read this report to understand the positioning of Consulting & Transformation Service providers and gain a better understanding of how the offerings of these providers can impact ongoing transformation initiatives within an organization and the benefits they can avail by shifting to the Cloud.

Experts from the areas of procurement, purchase and Vendor Management should read this report to develop a better understanding of the current landscape of providers of Consulting & Transformation Services in Germany.

ENTERPRISE CONTEXTConsulting and Transformational Services for Large AccountsThis quadrant is relevant for large companies in Germany that evaluate providers of Consulting & Transformation Services.

In this quadrant, ISG explains the current market positioning of the providers of Consulting and Transformation Services in Germany and shows how it deals with the most important challenges that large companies face in the case of migration to the public cloud environment.

Organizations were reluctant to move to the Public Cloud owning to difficulties relating to proper assessment of Workloads, Change Management, the well-known shortage of talented professionals, and uncertainties in the case of integration of existing infrastructure. In 2020, the need to move Workloads to the Public Cloud has become more urgent than ever, and many companies are moving their Workloads and accelerating the digital transformation which they are planning. This report can help in choosing the right provider to overcome the challenges and address the identified difficulties.

Companies will benefit from the expertise of the providers of Consulting & Transformation Services when it comes to assessment of the Workloads, the Transformation Roadmap, the Migration consulting, the Re-architecture of legacy applications and the integration of automation functions.




2121


SOCIAL ENTERPRISE NETWORKING DefinitionThe public cloud enables companies to be agile and scalable without

having to invest in their own infrastructure. That makes them an

important and essential driver of digital transformation. Consulting

and implementation service providers work with public cloud providers

to manage the customer-specific complexity of the adaptation and use

of public cloud solutions. Their services usually include the following:

� Consultation services: Development of a business scenario for the cloud, identification of workload for the migration, creation of a multi-year transformation strategy plan, which includes assessment of the impact on the organisation, the inclusion of risks and compliance-relevant issues as well as migration skills for applications in a public cloud

� Implementation services: Development and creation of cloud environments, migration and integration of applications and/or optimization of the architecture in order to take advantage of the

properties and advantages of cloud Computing

CONSULTING AND TRANSFORMATIONAL SERVICES FOR LARGE ACCOUNTS



2222


For this quadrant, the creation of private clouds has not been

taken into account, given that private cloud is covered in a separate

study on the topic of outsourcing and transforming data centers.

Accordingly, the public cloud Transformation Quadrant is limited to the

adaptation of public cloud services and their integration with corporate

environments, which can contain private clouds.

� Innovative thinking and image in relation to cloud transformation;

� Methods and frameworks to analyse the situation of the customer;

� Experience with planning implementation of multi-cloud infrastructures;

� Experience in migration of applications (Templates, automation engines and ISV partnerships);

� hyperscaler partner program certifications from a solution perspective;

� Vertical (industry) and horizontal (technology) competence;

� Customer references and projects or use cases;

� Integration services and support for hybrid clouds.

Definition (Cont.) Eligibility Criteria




2323


Users as well as service providers are faced with a common challenge:

The complexity of exponentially provided tools and services from the

hands of hhyperscalers or third parties along the fast-growing platform

economy and the associated search for certified professionals and

experienced partners in the areas of ADM, migration, cloud-native Ops

or DevSecOps.

One major change is the need to establish closely interwoven, cross-

departmental teams that work agile in the so-called Dev(Sec)Ops mode.

This goes far beyond the conventional philosophy of the necessary

interlinking of IT and business and requires permanent collaboration

and new roles. IT must network various stakeholders, customers

and partners in real time, securely and in a structured manner, in

order to enable digitally transformed product life-cycle and service

life-cycle management. However, cloud-native and digital experts are

in short supply, which is why user companies usually have to rely on

professional support.

In general, IT consultancies are prompted to support companies in establishing personal change

management. In this case, companies need a lot of instinct to make the concerned employees understand

the added value of the necessary change. Companies have to make organisational changes. This

specifically means acquiring methods such as design thinking, SCRUM and thus small-scale sprint work

cycles in order to meet customer requirements and exploit new IT delivery models and operating models.

As a foreseeable consequence, companies will have to place more and more emphasis on cloud experts

and developers or software architects in order to have IT or cloud under control as an essential

production factor.

Customers are looking for support in the area of corporate or internal policies, compliance or risk

management in the increasingly complex IT and cloud system world. In addition, adhering to security and

compliance requirements has become a real challenge. This has created a market for a special form of IT

and security service providers who guarantee end-to-end security and carry out audits.

In this context, companies and providers also find that the implementation of security cannot be

considered retrospectively. DevSecOps is increasingly replacing DevOps on a broad front, as security must

be integrated into the target operating model (TOM) from the start. In the first phases of the DevOps

Observations




2424


implementation, security principles are, therefore, integrated as a

standard function. Some IT service providers already offer access to

quantum computers to ensure security and proper cryptography within

the framework of the necessary encryption.

Older systems are still the biggest hurdle for enterprise agility. They can

often hinder agile development and extensive agile business process

development. Companies are, therefore, looking for ways to break the

deadlock on their legacy systems. The most widely used solution is for

consultants to show them ways and means to achieve the necessary

enterprise agility within the scope of their digital transformation.

Many service providers offer dedicated agile services and programs

for the modernization and migration of older applications. However,

experience has shown in this case, that an application transformation

rarely makes sense and that costs can explode quickly. On average,

€50,000 has emerged as the absolute pain threshold per application

and its re-architecturing; however, this must always be assessed

individually.

New requirements for modern application operation in the context of continuous integration and

development (continuous integration and delivery or CI/CD) overwhelm many users. Companies should

always involve the relevant specialist departments and make decisions in the context of the need to set up

continuous IT life-cycle management in order to pave the way to data-driven applications and intelligent,

highly automated services.

In-depth knowledge of the most important legacy systems will continue to be a decisive aspect for many

industries and, at the same time, represents a barrier to entry for start-ups or start-ups in the cloud-native

sector. Established companies cannot simply switch the switch from old to new, but have to combine

different business practices and speeds.

� Accenture acquires and invests like no other service provider in cloud competencies which are

managed and strategically driven at the highest level by Accenture. In combination with the strong

Consulting unit and knowledge in the digital field, the result is a public cloud transformation partner

that is currently difficult to beat.

� Arvato Systems jumped right into the league of leading public cloud consultants and transformation

specialists in 2019 and has had an excellent year since then. Customer references or successful projects

and other public cloud-specific certifications as well as industry knowledge and SAP know-how are

important assets of Arvato Systems.

Observations (cont.)




2525


� Atos remains within the circle of leading providers in Germany due

to the multi-cloud and edge computing expterise as well as the

comparatively close cooperation with public cloud providers. Above

all, its Google partnership should be mentioned here, with which

customers can be safely supported on their digital journey and on

the way to a data-centric business model.

� Capgemini plays a role more than ever in the context of complex

and at the same time native public cloud transformation projects,

in which Capgemini can combine the industry skills acquired over

many years with application know-how. Above all, vertical knowledge

is supported by acquisitions. Now is the time to continue investing in

cloud-native experts.

� Computacenter continues to improve after entering the

Leader quadrant for large accounts for the first time in 2019.

Computacenter knows how to please with its many certified or well-

trained consultants and focuses on current issues with workplace

and security expertise.

� From the very beginning, DXC Technology as a brand stood for agile and next-generation methods of

cloud transformation and quickly achieved the competence acquisition on the hyperscaler side. In 2020,

DXC will be one of the leading service providers for transformative major customer projects, especially

in Germany.

� IBM benefits sustainably and faster than expected from its Red Hat acquisition, which has provided IBM

not only with important cloud-native experts with an agile mindset, but also with additional customer

access. As a thought leader, IBM is in an even better position at present, thanks to the integrated

internal business units and units.

� NTT DATA is now one of the leaders due to the significant improvement in its portfolio – it is playing

all the cards once again to prove that it is possible to provide up-to-date advice to customers of all

sizes, especially large and demanding companies, even without the parent ship NTT Group, and also to

securely transform their database and application-oriented needs.

� T-Systems increases the knowledge of the top hyperscaler platforms to an exemplary and increasing

level, with which customers are now advised in a technology-agnostic, and at the same time, platform-

specific manner, and transformation uses tried and tested analysis and migration tools.





2626


� The Rising Star Rackspace Technology is gaining a foothold in

Germany. The company is an ideal candidate for challenging

consulting and implementation projects, as it has gained an

outstanding technical understanding of hyperscaler infrastructures

and platforms on the basis of many successfully completed projects

and close hyperscaler relationships.

� Further changes regarding the provider positioning: Infosys, Sopra

Steria, KPMG and Hexaware were included in 2020 – they showed

portfolios in line with requirements, customer references and

have sufficient project income in this region. In contrast, BT, Unisys

and Infinite dropped out of the quadrant as ISG could not find

sufficient awareness or customer references for public cloud related

consulting projects. Nordcloud has moved from this quadrant to

the mid-tier quadrant as the company is active in both markets and

is difficult to fit into the environment of these providers in terms of

maturity and presence in terms of ability to scale as well as certain

requirements of large customers. Netlution was positioned in the quadrant for large customers for the

first time in 2020, and thus, removed from the quadrant for mid-tier companies, as it has its business

focus there. tecRacer, the consulting and training partner of the first hour focused only on AWS, was

also moved to the quadrant for offers in the area of large customers due to the customer structure.

This year, CGI was included in the SME-oriented quadrant as a contender, as the customer structure

and the associated sweet spot do not justify a sufficient justification for the large customer-oriented

market. Despite its attractive portfolio, Wipro dropped out of the Leader quadrant into the Product

Challenger quadrant, as ISG did not find sufficient customers or revenues to further justify this position

after thorough analysis. BearingPoint and PwC were able to work their way from the Contender

quadrant to the Market Challenger quadrant.





T-SYSTEMS

T-Systems securely supports customers in tough times and the need for rapid change and is increasingly developing into a public

cloud specialist that masters both cloud-Native methods and tools and legacy platforms.

The necessary changes in the GTM and regarding the internal organization pose challenges for T-Systems. A solution sales model, which is more strongly oriented toward vertical requirements, must be developed, and thought leadership must be underlined by means of peak events and partner awards. ISG believes there is room for improvement in terms of the number of innovation-driven projects within the framework of digital or public cloud-based business models. This includes the Google partnership, which provides access to open source and cloud native partners.

Increasing number of experts: Customers benefit from a large number of experts (more than1,000) for AWS, Microsoft, VMware, SAP and increasingly also Google Cloud offerings. DevOps specialists and experts for the important tools for infrastructure and application modernisation are available and receive further training.

Flexible methods and construction kits: T-Systems is consistently expanding the Cloudifier service offering and is also focusing on customers with complex integration requirements that are solved using CloudHub and thus its Mulesoft partnership. A full range of services is offered, from strategy consulting to the architecture concept to application transformation. T-Systems knows how to efficiently analyse and migrate application landscapes according to the individual customer situation. The focus is on opportunities and business public cloud models.

Legacy competencies or SAP competencies and industry depth: T-Systems transforms critical SAP ERP systems and also mainframe systems into the public cloud and supports customers according to their vertical, such as ., process-specific requirements. This is also reflected in new solutions and sales models for the automotive industry as well as for the health, retail, logistics, banking and insurance, manufacturing, pharmaceutical and chemical industries.

T-Systems addresses the IT-driven development, implementation, integration and operation of private and public IT infrastructures and applications, including strategic digitization and the associated transformation solutions. In 2019, T-Systems generated €5 billion (a decline 20%) with around 32,000 (a decline of 7,000) employees. Sales of cloud services account for approximately one seventh of total sales, of which a third is public cloud services and the managed service business. The cloud business unit grew again by 30% in 2019.

Caution

Strengths

Overview

ISG Provider Lens™ Quadrant Report | November 2020 Consulting and Transformational Services for Large Accounts

2020 ISG Provider Lens™ Leader

2828

Executive Summary

delivery capabilities and high integration capabilities. Most mid-tier clients are looking for service providers with consultation and migration skills and the ability to offer a ready-to-use framework and cultural integration on the path of transformation.

ISG has noted that the focus of companies is increasingly shifting from Lift & Shift or simple Workload shift to long-term application modernization, which is why Re-architecture, Code Reviews and Cloud-Native environments will also be on the rise in Germany.

IT managers should read this report to better understand the relative strengths and weaknesses of Consulting and Transformation Service providers and to drive digital transformation in their organization.

Software development and technology executives should read this report to understand the positioning of Consulting & Transformation Service providers and gain a better understanding of how the offerings of these providers can impact ongoing transformation initiatives within an organization and the benefits they can avail by shifting to the Cloud.

Experts from the areas of procurement, purchase and Vendor Management should read this report to develop a better understanding of the current landscape of providers of Consulting & Transformation Services in Germany.

ENTERPRISE CONTEXTConsulting and Transformational Services for MidmarketThis quadrant is relevant for mid-tier companies in Germany which assess the providers of Consulting & Transformation Services.

In this quadrant, ISG presents the current market positioning of the providers of Consulting and Transformation Services in the USA and shows how they deal with the key challenges that mid-tier companies are confronted with in the process of moving to the Public Cloud environment.

Organizations were reluctant to move to the Public Cloud owning to difficulties relating to proper assessment of Workloads, Change Management, the well-known shortage of talented professionals, and uncertainties in the case of integration of existing infrastructure. In 2020, the need to move Workloads to the Public Cloud has become more urgent than ever, and many companies are moving their Workloads and accelerating the digital transformation which they are planning. This report can help in choosing the right provider to overcome the challenges and address the identified difficulties.

Companies will benefit from the expertise of the providers of Consulting & Transformation Services when it comes to assessment of the Workloads, the Transformation Roadmap, the Migration consulting, the Re-architecture of legacy applications and the integration of automation functions.

Compared to large companies, mid-tier clients have only a few complex requirements with a smaller project scope. Therefore, mid-tier companies prefer providers with strong local




2929


SOCIAL ENTERPRISE NETWORKING SUITES

DefinitionThe public cloud enables companies to be agile and scalable without

having to invest in their own infrastructure. That makes them an

important and essential driver of digital transformation. Consulting and

implementation service providers work with public cloud providers to

manage the customer-specific complexity of the adaptation and use of

public cloud solutions. Their services usually include the following:

� Consultation services: Development of a business scenario for the

cloud, identification of workload for the migration, creation of a

multi-year transformation strategy plan, which includes assessment of

the impact on the organisation, the inclusion of risks and compliance-

relevant issues as well as migration skills for applications in a public

cloud.

� Implementation services: Development and creation of cloud

environments, migration and integration of applications and/or

optimization of the architecture in order to take advantage of the

properties and advantages of cloud computing.

CONSULTING AND TRANSFORMATIONAL SERVICES FOR MIDMARKET



3030


For this quadrant, the creation of private clouds has not been

taken into account, given that private cloud is covered in a separate

study on the topic of outsourcing and transforming data centers.

Accordingly, the Public Cloud Transformation quadrant is limited to the

adaptation of public cloud services and their integration with corporate

environments, which can contain private clouds.

� Innovative thinking and image in relation to cloud transformation;

� Methods and frameworks to analyse the situation of the customer;

� Experience with planning implementation of multi-cloud infrastructures;

� Experience in migration of applications (templates, automation engines and ISV partnerships);

� Hyperscaler partner program certifications from a solution perspective;

� Vertical (industry) and horizontal (technology) competence;

� Customer references and projects or use cases;

� Integration services and support for hybrid clouds.

Definition (cont.) Eligibility Criteria




3131


Users as well as service providers are faced with a common challenge:

The complexity of exponentially provided tools and services from the

hands of hyperscalers or third parties along the fast growing platform

economy and the associated search for certified professionals and

experienced partners in the areas of ADM, migration, cloud-native ops

or DevSecOps.

One major change is the need to establish closely interwoven, cross-

departmental teams that work agile in the so-called Dev(Sec)Ops mode.

This goes far beyond the conventional philosophy of the necessary

interlinking of IT and business and requires permanent collaboration

and new roles. IT must network various stakeholders, customers

and partners in real time, securely and in a structured manner, in

order to enable digitally transformed product life-cycle and service

life-cycle management. However, cloud-native and digital experts are

in short supply, which is why user companies usually have to rely on

professional support.

In general, IT consultancies are prompted to support companies in establishing personal change

management. In this case, companies need a lot of instinct to make the concerned employees understand

the added value of the necessary change. As a consequence, companies have to make organizational

changes. This specifically means acquiring methods such as design thinking, SCRUM and thus small-scale

sprint work cycles in order to meet customer requirements and exploit new IT delivery models and

operating models. As a foreseeable consequence, companies will have to place more and more emphasis

on cloud experts and developers or software architects in order to have IT or cloud under control as an

essential production factor.

Customers are looking for support in the area of corporate or internal policies, compliance or risk

management in the increasingly complex IT and cloud system world. In addition, adhering to security and

compliance requirements has become a real challenge. This has created a market for a special form of IT

and security service providers who guarantee end-to-end security and carry out audits.

In this context, companies and providers also find that the implementation of security cannot be

considered retrospectively. DevSecOps is increasingly replacing DevOps on a broad front, as security must

be integrated into the target operating model (TOM) from the start. In the first phases of the DevOps

Observations




3232


implementation, security principles are, therefore, integrated as a

standard function. Some IT service providers already offer access to

quantum computers to ensure security and proper cryptography within

the framework of the necessary encryption.

Older systems are still the biggest hurdle for enterprise agility. They can

often hinder agile development and extensive agile business process

development. Companies are, therefore, looking for ways to break the

deadlock on their legacy systems. The most widely used solution is for

consultants to show them ways and means to achieve the necessary

enterprise agility within the scope of their digital transformation.

Many service providers offer dedicated agile services and programs

for the modernization and migration of older applications. However,

experience has shown in this case, that an application transformation

rarely makes sense and that costs can explode quickly. On average,

€50,000 has emerged as the absolute pain threshold per application

and its re-architecturing; however, this must always be assessed

individually.

New requirements for modern application operation in the context of continuous integration and

development (continuous integration and delivery or CI/CD) overwhelm many users. Companies

should always involve the relevant specialist departments and make decisions in the context of

the need to set up continuous IT life-cycle management in order to pave the way to data-driven

applications and intelligent, highly automated services.

In-depth knowledge of the most important legacy systems will continue to be a decisive aspect for

many industries and, at the same time, represents a barrier to entry for start-ups or start-ups in the

cloud-native sector. Established companies cannot simply switch the switch from old to new, but

have to combine different business practices and speeds.

� All for One Group remains a leader for public cloud consulting and transformation owing

to know-how in the field of SAP and Microsoft, and thus, for two highly trending topics in the

market. It offers top-class answers to productivity and collaboration requests and the topic of

SAP on Azure.

� Axians can continue to count itself among the leading providers in the German market for mid-

tier companies, given that they have high integration skills and certifications in the Microsoft

Azure environment and are gradually dealing with AWS and Google.





3333


� CANCOM is a strong leader and demonstrates the right

qualifications, not least through selected acquisitions, to know

its way around topics including containers, DevOps and cloud-

native computing for the top hyperscaler clouds and to provide

consultation to customers in accordance with their individual

journey and, above all, to transform and ultimately integrate them.

� As a leader for German mid-tier, Deutsche Telekom offers

comprehensive expertise in product-oriented consulting and

transformation across common public cloud environments – with

particular focus on cloud governance and compliance.

� Reply is an innovative, dedicated public cloud consultant and

transformer for Google Cloud Platform, Microsoft Azure and AWS,

who should be short-listed especially for platform-specific and agile

searches.

� Claranet is making excellent transformations and provides consultation to customers on cloud-

agnostic and native basis.. Classified as a Rising Star, Claranet enters this quadrant and shines

with top-class references in the field of cloud projects for which there are few specialists.

� Further changes regarding the provider positioning: Netlution was positioned in the quadrant

for large customers in 2020, and thus, removed from the quadrant for mid-tier companies, as

it has its business focus there. tecRacer, the consulting and training partner focused only on

AWS, was also moved to the quadrant for offerings in the area of large customers due to the

customer structure. This year, CGI was included in the SME-oriented quadrant as a contender,

as the customer structure and the associated sweet spot do not justify a sufficient justification

for the large customer-oriented market. Owing to insufficient customer references and traction

in the environment of hyperscaler-based ecosystems, QSC dropped out of the Leader quadrant

and will, therefore, continue to be managed as a content provider for public cloud consulting

and transformation services.




3434

Executive Summary

risk assessment to make the public cloud services compliant with regional and industry specific regulations that reduce operational costs.

ISG sees that enterprises in Germany are moving away from legacy IT operating models and toward the public cloud. GRC providers can help by creating a secure framework for workload migration with robust understanding of the operating environment in Germany and data protection regulations. Also, enterprises are looking for an integrated solution of GRC services for the cloud to ensure security controls at all levels and complying with various regulations such as GDPR.

IT leaders should read this report to better understand the relative strengths and weaknesses of governance, risk and compliance services providers, as well as leading the digital transformation drive in their enterprises.

Software development, technology and security leaders should read this report to understand the positioning of governance, risk and compliance services providers and gain a better understanding of how those providers’ offerings can impact the ongoing transformation initiatives.

Sourcing, procurement, and vendor management professionals should read this report to develop a better understanding of the current landscape of governance, risk and compliance providers in Germany.

ENTERPRISE CONTEXTGovernance, Risk and Compliance ServicesThis report is relevant to enterprises across industries in Germany, for evaluating providers of governance, risk and compliance services.

In this quadrant report, ISG highlights the current market positioning of providers of governance, risk and compliance services in Germany, and the way they address the key challenges faced by enterprise clients in the country.

Enterprises are facing challenges in maintaining their public cloud governance and compliance process due to a growing threat to data security and a strict regulatory environment. Sometimes enterprises end up paying huge penalties and rework on their cloud architecture that has significant cost overruns and data security concerns in their migration. This is mainly due to lack of integration among various systems in the organization, inability to integrate risk analytics, shortage of skilled professionals, increased collaboration with partners further add complexity to the governance process and data privacy regulations. Also, hybrid and multi-cloud environments made enterprises difficult to manage their governance, risk and compliance process.

Enterprises can benefit from governance, risk and services providers such as consulting firms that can manage their public cloud governance process. Enterprises leverage GRC providers' framework, policies, processes, and functions to ensure their workloads are run in a secure and compliant environment. GRC providers can help by offering their domain expertise and services around robust cloud operating model, security, tax, audit, and




3535


SOCIAL ENTERPRISE NET-WORKING SUITES

DefinitionThis quadrant examines service providers such as consulting firms that

offer various frameworks, policies, processes, and features to ensure

that enterprise cloud workloads, regardless of location, run in a secure

and compliant environment. Therefore, what is needed is a framework

and set of guidelines for using cloud Computing services in a secure

environment that are often flanked by public cloud transformation

activities. Relevant providers are independent third-party organizations

that provide unbiased governance, risk and compliance services (GRC).

To successfully implement cloud solutions, it is necessary to focus on

the business architecture, taking into account the business use case, the

cloud operating model, the assessment and selection of the provider,

and the readiness and maturity of the entire ecosystem. The important

services include organizational change management (OCM), raising

awareness among stakeholders and adaptation of their respective

responsibilities accordingly, migration of applications, setting up a cloud

innovation laboratory and risk assessment in the areas of security,

taxation, audit and finance to bring the use of the public cloud service

fully in line with regional and industry-specific regulations.

GOVERNANCE, RISK AND COMPLIANCE SERVICES



3636


� Ability to align technology needs with business goals (new products,

faster time to market, and increased profitability);

� Ability to enable optimization at the operational level through

governance guidelines (optimization of service availability, minimization

of the specific risk of stakeholders and reduction of dependency on

outdated application stacks);

� Ability to provide a governance architecture for future growth and easy

service integration from the start;

� Security certifications like HIPAA, GDPR, BSI C5, SOC, NIST, ISO, PCI DSS,

FISMA, ANSSI, FedRAMP etc. ;

� Experience in the definition and especially in the mapping of tailor-made

processes and organizational structures, including clear roles and

responsibilities, and their adaptation to new requirements;

� Implementation of cloud Audits and services such as cloud security

posture management (CSPM) for a wide range of cloud environments;

� Implementation of accounting, tax and legal procedures in cloud

transformation projects for mitigation of risks.

With the increasing acceptance of cloud services in the German market, the needs and requirements for

the secure and rule-compliant operation of cloud services have also increased. Consulting services in the

area of cloud governance, risk and compliance (GRC) are enjoying increasing demand. While IT operation

teams have been able to operate their on-premise systems in a secure and legally correct environment

for years, many IT managers are wondering how this can be done in public cloud environments. With

the introduction of the basic data protection regulation and termination of the U.S./E.U. Safe Harbour

Agreement, the question arises, especially for companies that are already very far advanced in their

cloud journeys, of how the cloud environments that have been in operation for years can, in future,

be operated in a rule-compliant and secure manner and services can be provided without breaching

existing regulations. The GAIA-X initiative launched by 20 founding members at the beginning of 2020

could answer these questions. However, it can be assumed here that it will be some time before the first

services are provided on the cloud platform, which is designed to be secure. The realistic answers to the

questions are currently being provided by the service providers and consulting companies established in

the market. In addition to the integration and operation of public cloud environments, consulting services

in this area are particularly in demand from service providers. The service providers who are already

active in the cloud business can easily benefit from additional services, with the question of a conflict

of interest vis-à-vis the customer with regard to audit activities. Large management consultancies are

pushing their way onto the market with more expensive products and ready-made standard procedures

Eligibility Criteria Observations




3737


for the compliant and risk-free implementation of cloud services, but they

also help their customers with an independent, audited implementation

of public cloud solutions. Thus, it is not surprising that the top consulting

firms in particular are listed among the leading GRC consultants in this

quadrant.

� Deloitte: Deloitte povides high-quality integration of GRC, especially in

the technology sectors. Future technologies are profitably integrated

into the business and increase success.

� EY: EY is a globally oriented management consultancy with a classic

view of GRC Professional services, which has been expanded primarily

with tools developed in-house.

� KPMG: In addition to numerous solutions in the compliance area,

KPMG primarily offers cybersecurity and risk management solutions in

its consulting portfolio.

� PwC: PwC is a strong partner in the GRC area thanks to its extensive

test model, which can score points not only in terms of consulting, but

also through innovations.




3838

Executive Summary

IT managers should read this report to better understand the relative strengths and weaknesses of providers of Managed Services and how the market approach of these providers can impact the Public Cloud strategies of organizations, improve business agility, and reduce total cost of ownership.

Software development and technology executives should read this report to understand the positioning of providers of Managed Services and how their offerings can affect the ongoing development of software products within an organization.

Experts from the areas of procurement, purchase and Vendor Management should read this report to develop a better understanding of the current landscape of providers of Managed Services in Germany.

ENTERPRISE CONTEXTManaged Public Cloud Services for Large AccountsThis quadrant is relevant for large companies in Germany that evaluate providers of Public Cloud Managed Services.

In this quadrant, ISG sets out the current market positioning of providers of Managed Services in Germany and explains how they deal with the most important challenges which large companies face in the case of infrastructure management in the Public Cloud environment. These providers manage the Workloads in the third-party Public Cloud Hyperscaler environment on behalf of their clients so that these companies can focus on other tasks.

To be successful in the current digital business environment, companies need to take a unified approach to their technical infrastructure across Public and Private Clouds. Local service providers with European data centres are increasingly coming into focus.

The usage of Managed Services from the Public Cloud can help companies implement Cloud-native solutions that use Containers and serverless functions. This helps companies with application modernization and cost optimization so that they can run their applications on a large scale.

Companies benefit from the automation and AI capabilities of Managed Service providers to monitor their infrastructure and predict failures and dependencies of Services in case of failures, thereby reducing maintenance costs. ISG has noted that Covid-19 has created increased demand for providers who want to focus more on business continuity and disaster recovery within the framework of their Public Cloud Managed Services.




3939



DefinitionManaged public cloud service providers (MSPs) offer professional

services and managed services in addition to IaaS and PaaS hyperscale

platforms for third-party public cloudclouds. Broadly, these services

include the provisioning, real-time analysis and predictive analysis,

monitoring and operational management of the customer’s public cloud

and multi-cloud environment. The aim is to maximize the performance

of work in the cloud, reduce costs and ensure compliance and security.

Typically, specially developed or licensed cloud management platforms

and tools are used to offer customers the highest level of automation

and to provide the necessary transparency about the managed cloud

resource pool with regard to capacity utilization and costs, including

independent management.

Managed Public Cloud Services for Large Accounts

MANAGED PUBLIC CLOUD SERVICES FOR LARGE ACCOUNTS


4040

ISG Provider Lens™ Quadrant Report | November 2020 Managed Public Cloud Services for Large Accounts

The services provided typically include:

� Professional services for the management and monitoring of CPU,

memory, databases, operating systems as standalone or microser-

vices or virtual machine services or container services;

� Update and patching services for operating system, middleware and

applications;

� Service portal for cost management (chargeback and showback) and

identity management or IT service management;

� Governance and compliance management;

� Supporting services such as incident management, configuration,

security services and setting up automation.

� Operational excellence and clearly defined professional services;

� Expertise in configuration management of platforms/systems as well as containers;

� Experience in designing, building, and management of public cloud and multi-cloud environ-

ments;

� Support in the development of software code, with cloud-native and legacy system integration;

� DevOps experience;

� Experience in API automation and cloud analytics;

� Mature security processes;

� Support for various customer roles such as technician (IT) and developer;

Definition (cont.) Eligibility Criteria



4141


� Partnerships with relevant providers of public clouds and the

respective managed service provider (MSP) certificates for AWS,

Azure or GCP. Typically, the MSPs need to have customer cases and

some consumption-driven and recurring revenue. They must also

attend joint business planning meetings and pass multiple certif-

icates/audits to ensure their skills and knowledge for each of the

followinghyperscale platforms:

� Azure CSP 1 or 2 partners with silver/gold status or expert status:

Administrator, Solutions Architect, Developers, DevOps / Security /

KI / Data Engineer, Domain Specialization and Cloud Platform;

� AWS: Registered, Advanced, Premier Partner: Solution Architect,

DevOps Engineer, Developer, SysOps Administrator, Migration

consulting/Delivery, Domain Specialization;

� GCP: Registered and Premier Partner: Cloud Architect, Data

Engineer, DevOps Competency, Domain Specialization.

Large customers are still looking for partners who are able to scale and support them in their

operations from two or more public cloud providers worldwide, regardless of whether they are

AWS, Azure or GCP platforms or Salesforce, Workday or SAP applications. For large customers, the

ServiceNow platform often plays a role in order to address IT service management accordingly.

The public cloud ecosystem to be managed is growing faster than ever as the general acceptance

of the public cloud increases. Companies need a helping hand because they often do not have

the necessary expertise on their own. Service providers use standardized process models and

platforms, DevOps and IaC practices (Infrastructure-as-Code) with preconfigured API integration

options in order to manage cloud infrastructures efficiently and with a high degree of automation.

Some large customers are torn in the process, given that orchestration of the infrastructure is

becoming exponentially more difficult as infrastructures and platforms evolve very rapidly and they

themselves are also going through a transformation in many cases which, in combination, is often

too much for a user company. The administration of a hybrid multi-cloud environment in particular

brings with it high level of complexity, which usually only professional service providers master by

means of intelligent compositions of many different artefacts and tools. This is why leading service

providers have developed robust cloud management platforms (CMPs) to counteract this problem

Eligibility Criteria (cont.)



Observations


4242


and ensure interoperability between systems. Furthermore, leading

providers work closely with the hyperscalers within the framework

of the partner ecosystem and are accredited as managed service

providerproviders. In particular, migration skills, cloud security and

governance, DevOps and automation, cost control and, ultimately,

modular and standardized as well as increasingly intelligent managed

services are assuming greater importance.

While MSPs used to focus primarily on patch management,

incident management, security management and possibly change

management as well as business continuity and rarely included

SLAs at the application outcome level, the so-called cloud-native

providers focus much more on time-to-market, the innovation rate,

the increased flexibility as well as the absolutely necessary automation

and scalability of systems – if only through the goal of internal cost

savings and profitability. Furthermore, leading service providers tend

to use continuous integration/delivery (CI/CD) within the framework

of DevOps, to embed AIOps, to master container management or

Kubernetes and ultimately to rely on microservices or a serverless architecture. Similar to DevOps,

site reliability engineering, another characteristic of next-gen or cloud-native providers, takes into

account aspects of software engineering in order to apply them in terms of system management

and operation. Managed public cloud service providers also participate in the public cloud

consumption of each customer and also align contracts with end customers with it - they benefit,

so to speak, from the intensity of use on the customer side.

ISG sees the following trends:

� Competencies for network performance management (software-based) to eliminate or scale

bottlenecks and to guarantee high data throughput;

� Support for hybrid clouds, such as for combinations of privately hosted Container services and

public cloud offerings from AWS, Microsoft Azure, Google Cloud Platform (GCP), IBM Cloud and

others;

� Provision of monitoring, logging, patching and predictive analysis for performance guarantees

and security improvements over the entire container life-cycle;

� Established or developing partnerships with at least one container orchestration and Cluster

management tools/services such as Kubernetes, Docker Swarm, Rancher, Nomad or OpenShift;





4343


� Automated and, depending on the application profile, selected archi-

tecture templates for infrastructure and platform services to enable

continuous microservice Integration and, above all, delivery; in this

context, we speak of continuous integration and delivery (CI/CD)

In addition to the well-known certifications of hyperscalers in the area

of managed services, providers differentiate the following points:

� Expertise in the management of the data center infrastructure (SDx)

and increasingly also for applications (ADM) and their migration;

� Flexible contracts with high level of transparency with regard to the

tasks to be taken on in accordance with SLAs up to Side Reliability

Engineering (SRE) or partnership-based shared risk models;

� Continuous investments to make services more efficient and reli-

able, including introduction, adaptation and integration of advanced

technologies, operational processes and business processes through

to automation or AIOps;

� Close cooperation with technology providers (ISVs) and hyperscalers as well as innovative

communities such as the CNCF; certifications for platform-specific depth-based and agnostic

operational expertise

The following points show the main focus of current customer searches across all sizes and

industries:

� Standardization of the technical infrastructure through hybrid cloud expertise and thus also

interoperability;

� Support on the way to becoming a data-centric company by breaking down silos;

� Control over the hardware and systems or complexity reduction and automation for the

necessary scaling, the cost overview and forecasts or reduced expenses on the customer side;

� Compliance with important regulations such as data protection and data residency or support to

ensure maximum agility in case of high stability and security

� Assumption of responsibility for databases and applications (technical);

� Help in the areas of IT life-cycle management, containers, DevOps and test automation up to

continuous integration and delivery (CI/CD) support.





4444


� Accenture continues to be one of the leading providers owing to the

highest accreditations, high sales and high consumption on the hy-

perscaler side as well as the cloud platform that has been expanded

over many years and recently equipped with myWizard.

� Arvato Systems is continually refining the portfolio after the

company in 2019 consistently continued on the path of the Rising

Stars and was added to the group of Leaders.

� Atos is a leader in private cloud, hybrid cloud and increasingly also

public cloud platforms, which can meaningfully combine built up

competencies in edge orchestration, analytics orchestration, security

orchestration and cloud orchestration segments and scale together

with customers through automation and intelligence.

� Capgemini is still one of the leading and highly attractive managed

service partners for public clouds. especially for customers that

pursue upstream application migration intentions.

� DXC Technology continues to look after professionally managed public cloud environments

for numerous customers in Germany; it works very closely with hyperscalers and also manage

comparatively monolithic legacy applications for customers.

� Rackspace Technology is a leader with ambitious growth plans for Europe and Germany,

which, based on early focus on the professional and product-like management portfolio for

hyperscalers, is one of the leading providers and continues to gain ground.

� T-Systems is increasingly becoming a strong leader for managed public cloud services, who has

rapidly built up and consistently expanded knowledge of how to deal with various public cloud

platforms within two years.

� Wipro maintains its leadership position and is clearly one of the most important and leading

managed public cloud providers who are trying to reduce complexity for their customers and

noticeably increase automation and system intelligence.

� Infosys, the Rising Star in this quadrant, offers industry-specific knowledge and, above all, tech-

nically attractive managed services for public clouds, something that more and more customers

are appreciating.





4545


� Further changes regarding the provider positioning: In 2020, Fujitsu

will drop from the Leader quadrant to the Product Challenger

quadrant, since ISG does not see sufficient awareness in the local

market and there are not enough customer references from the

large customer environment. 2ndwatch has been eliminated entirely,

given that the market is growing too fast and dynamically for ISG to

further justify the relevance of 2ndwatch among the most important

providers. Unisys was included in the Product Challenger quadrant

because the provider has seen growing public cloud business

practice in Germany and Europe and has also built a good portfolio.

tecRacer was accepted as a contender, as it generated a compara-

tively large amount of business and achieved enormous radiance

in the field of AWS projects. Cognizant was accepted as a Product

Challenger because it is more active than ever in Germany and

generates sufficient sales for managed public cloud environments.

The same applies to LTI and TCS. Materna is new to this quadrant and joined as a Contender

because, although it has a strong track record of ongoing business and commitment, it has

some catching up to do in terms of MSP certification and automation/AIOps practice and tooling

for better or above-average portfolio valuation in 2020.





T-SYSTEMS

T-Systems is consistently implementing the cloud-First strategy and is extremely committed to working with

the top hyperscale providers.

The existing skills and, above all, certifications for migrations such as dev and test, disaster recovery and high availability can be intensified by T-Systems according to the existing customer requirements and projects. The company is now addressing Google , but the skills and expert knowledge relating to GCP should definitely be further improved in order to be able to serve customer requirements on all top platforms in the public cloud sector at the highest level. This also includes Google Anthos as a management platform.Marketing has made great strides and T-Systems is now taking the opportunity to position itself as a cloud-agnostic managed service provider. It is now still necessary to increase the visibility as a future-oriented and thus next-gen or cloud-native service provider. This also means linking reference customers with solutions and portfolio elements at the right points on the digital customer journey.

Enterprise-compliant cloud management: T-Systems operates public cloud infrastructures natively or via infrastructure as code for cloud developers and DevOps teams as well as via modern dashboards for less experienced end customers or users. Particular emphasis is placed on '”cross-cloud monitoring” and on cost management within the scope of the cloud governance rules agreed upon with customers at the application level. The price model is very flexible and is based on the customer and his consumption: The more the consumption, the lower the service fee drops and vice versa. Integration in ITSM via ServiceNow for large customers is also not a challenge. Technical understanding meets process understanding and business understanding for industries including manufacturing, healthcare, retail, logistics, banking and insurance, production, pharmaceutical and chemical.

public cloud initiative enables cloud-native services: T-Systems has been familiar with public clouds and their management for many years, but has been able to significantly increase its expertise for all relevant hyperscalers since 2018 and is still doing this with great vigor. Thanks to T-Systems as an accredited managed service provider and DevOps specialist, customers benefit from the knowledge in multi-cloud architectures, the native infrastructure connection via API and templates for higher-lying parts of the stack.

Security and compliance: The well-known and certified Cyber Defence and Security Operation Center guarantees maximum security for demanding or highly regulated customers and industries.

T-Systems addresses the IT-driven development, implementation, integration and operation of private and public IT infrastructures and applications, including strategic digitization and the associated transformation solutions. In 2019, T-Systems generated €5 billion (a decline of 20%) with around 32,000 employees (a decline of 7,000), due to renovation and cost-saving measures. Sales of cloud services account for approximately one seventh of total sales, of which a third is public cloud services and the managed service business. The cloud business unit grew again by 30% in 2019.

Caution

Strengths

Overview


ISG Provider Lens™ Quadrant Report | November 2020 Managed Public Cloud Services for Large Accounts

4747

Executive Summary

increased demand for providers who want to focus more on business continuity and disaster recovery within the framework of their Public Cloud Managed Services.

IT managers should read this report to better understand the relative strengths and weaknesses of providers of Managed Services and how the market approach of these providers can impact the Public Cloud strategies of organizations, improve business agility, and reduce total cost of ownership.

Software development and technology executives should read this report to understand the positioning of providers of Managed Services and how their offerings can affect the ongoing development of software products within an organization.

Experts from the areas of procurement, purchase and Vendor Management should read this report to develop a better understanding of the current landscape of providers of Managed Services in Germany.

ENTERPRISE CONTEXTManaged Public Cloud Services for MidmarketThis quadrant is relevant for mid-tier companies in Germany that evaluate providers of Public Cloud Managed Services.

In this quadrant, ISG sets out the current market positioning of providers of Managed Services in Germany and explains how they deal with the most important challenges which mid-tier companies face in the case of infrastructure management in the Public Cloud. These providers manage the Workloads in the third-party Public Cloud Hyperscaler - environment on behalf of their clients so that these companies can focus on other tasks.

To be successful in the current digital business environment, companies need to take a unified approach to their technical infrastructure across Public and Private Clouds. Compared to large companies, mid-tier companies have only a few complex requirements with a smaller project scope. Therefore, mid-tier companies prefer providers with strong niche offers with competitive prices and high integration capabilities.

The usage of Managed Services from the Public Cloud can help companies implement Cloud-native solutions that use Containers and serverless functions. This helps companies with application modernization and cost optimization so that they can run their applications on a large scale.

Companies benefit from the automation and AI capabilities of Managed Service providers to monitor their infrastructure and predict failures and dependencies of Services in case of failures, thereby reducing maintenance costs. ISG has noted that Covid-19 has created




4848



DefinitionManaged public cloud service providers (MSPs) offer professional

services and managed services in addition to IaaS and PaaS hyperscale

platforms for third-party public clouds. Broadly, these services include

the provisioning, real-time analysis and predictive analysis, monitoring

and operational management of the customer’s public cloud and multi-

cloud environment. The aim is to maximize the performance of work in

the cloud, reduce costs and ensure compliance and security. Typically,

specially developed or licensed cloud management platforms and tools

are used to offer customers the highest level of automation and to

provide the necessary transparency about the managed cloud resource

pool with regard to capacity utilization and costs, including independent

management.

The services provided typically include:

� Professional services for the management and monitoring of

CPU, memory, databases, operating systems as standalone or

microservices or virtual machine services and/or container services;

MANAGED PUBLIC CLOUD SERVICES FOR MIDMARKET

Managed Public Cloud Services for Midmarket


4949


� Update and patching services for operating system, middleware and

application;

� Service portal for cost management (chargeback and showback) and

identity management or IT service management;

� Governance and compliance management;

� Supporting services such as incident management, configuration,

security services and setting up automation;

� Operational excellence and clearly defined professional services;

� Expertise in configuration management of platforms/systems as well as containers;

� Experience in designing, building, and management of public cloud and multi-cloud environ-

ments;

� Support in the development of software code, with cloud-native and legacy system integration;

� DevOps experience;

� Experience in API automation and cloud analytics;

� Mature security processes;

� Support for various customer roles such as technicians (IT) and developers;

Definition Eligibility Criteria




5050


� Partnerships with relevant providers of public clouds and the re-

spective managed service provider (MSP) certificates for AWS, Azure

or GCP. Typically, the MSPs need to have customer cases and some

consumption-driven and recurring revenue. They must also attend

joint business planning meetings and pass multiple certificates/

audits to ensure their skills and knowledge for each of the following

hyperscale platforms:

� Azure CSP 1 or 2 partners with silver/gold status or expert status:

Administrator, Solutions Architect, Developers, DevOps / Security /

KI / Data Engineer, Domain Specialization and Cloud Platform;

� AWS: Registered, Advanced, Premier Partner: Solution Architect,

DevOps Engineer, Developer, SysOps Administrator, Migration

Consulting/Delivery, Domain Specialization;

� GCP: Registered and Premier Partner: Cloud Architect, Data

Engineer, DevOps Competency, Domain Specialization.

The associated certifications for hyperscalers play a role in the selection of a managed cloud

service provider. For mid-tier companies, this is particularly important for Microsoft, as many

mid-tier companies are already customers of Microsoft or Office 365 or have become within the

last two years.

Some mid-tier companies are also looking for partners who can support them in their operations

from two or more public cloud providers.

The public cloud ecosystem to be managed is growing faster than ever as the general acceptance

of the public cloud increases. Companies need a helping hand because they often do not have

the necessary expertise on their own. Service providers use standardized process models and

platforms, DevOps and IaC practices (Infrastructure-as-Code) with preconfigured API integration

options in order to manage cloud infrastructures efficiently and with a high degree of automation.

Mid-tier companies also need help with the management of hybrid multi-cloud environments,

which naturally involve a high degree of complexity. This is solved by leading service providers

in the form of one-stop shops or integrated cloud management platforms (CMPs). Furthermore,

leading providers work closely with the hyperscalers within the framework of the partner

ecosystem and are accredited as managed service providers. In particular, migration skills, cloud

Eligibility Criteria (cont.)


Observations


© 2019 Information Services Group, Inc. All Rights Reserved.© 2020 Information Services Group, Inc. All Rights Reserved.

5151


security and governance, DevOps and automation, cost control and,

ultimately, modular and standardized as well as increasingly intelligent

managed services are assuming greater importance.

While MSPs used to focus primarily on patch management,

Incident management, security management and possibly change

management as well as business continuity and rarely included

SLAs at the application outcome level, the so-called cloud-native

providers focus much more on time-to-market, the innovation rate,

the increased flexibility as well as the absolutely necessary automation

and scalability of systems, if only through the goal of internal cost

savings and profitability. Furthermore, leading service providers tend

to use continuous integration/delivery (CI/CD) within the framework

of DevOps, to embed AIOps, to master container management or

Kubernetes and ultimately to rely on microservices or a serverless

architecture. Similar to DevOps, site reliability engineering, another

characteristic of next-gen or cloud-native providers, takes into account

aspects of software engineering in order to apply them in terms of

system management and managed operation. Managed public cloud

service providers also participate in the public cloud consumption of each customer and also align

contracts with end customers with it; they benefit, so to speak, from the intensity of use on the

customer side.

ISG sees the following trends:

� Competencies for network performance management (software-based) to eliminate or scale

bottlenecks and to guarantee high data throughput;

� Support for hybrid clouds, such ass, for combinations of privately hosted container service-

services and public cloud offers from AWS, Microsoft Azure, Google Cloud Platform (GCP), IBM

Cloud and others;

� Provision of monitoring, logging, patching and predictive analysis for performance guarantees

and security improvements over the entire container life-cycle;

� Established or developing partnerships with at least one container orchestration and cluster

management tools/service such as Kubernetes, Docker Swarm, Rancher, Nomad or OpenShift;

� Automated and, depending on the application profile, selected architecture templates for

infrastructure and platform services to enable continuous microservice integration and, above

all, delivery; in this context, we speak of continuous integration and delivery (CI/CD).





5252


In addition to the well-known certifications of hyperscalers in the area

of managed services, providers differentiate the following points:

� Expertise in the management of the data center infrastructure (SDx)

and increasingly also for applications (ADM) and their migration;

� Flexible contracts with high level of transparency with regard to the

tasks to be taken on in accordance with SLAs up to side reliability

engineering (SRE) or partnership-based shared risk models;

� Continuous investments to make services more efficient and reliable,

including the introduction, adaptation and integration of advanced

technologies, operational processes and business processes through

to automation or AIOps;

� Close cooperation with technology providers (ISVs) and hyperscalers

as well as innovative communities such as the CNCF; certifications

for platform-specific depth-based and agnostic operational expertise

The following points show the main focus of current customer searches

across all sizes and industries:

� Standardization oof the technical infrastructure through hybrid cloud expertise and thus also

interoperability;

� Support on the way to becoming a data-centric company by breaking down silos;

� Control over the hardware and systems or complexity reduction and automation for the

necessary scaling, the cost overview and forecasts or reduced expenses on the customer side;

� Compliance with important regulations such as data protection and data residency or support to

ensure maximum agility in case of high stability and security

� Assumption of responsibility for databases and applications (technical);

� Help in the areas of IT life-cycle management, containers, DevOps and test automation up to

continuous integration and delivery (CI/CD) support.

� CANCOM is one of the leading multi-cloud integrators and solution architects, which has hardly

any weaknesses when it comes to dealing with complex public cloud infrastructures and has

also caught up on the Managed Azure Expert certifications which are important for mid-tier

companies.





5353


� Claranet manages public clouds natively and is able to maintain the

leading position as an agnostic managed service provider, not least

thanks to aggressive group activities. Customers benefit from a strong

understanding of the division of labour and high contractual flexibility.

� Deutsche Telekom is still one of the leading managed service provid-

ers in the public cloud services segment, which masters IaaS, PaaS and

SaaS and can hopefully continue to rely on T-Systems and the exorbi-

tantly increased understanding of managed public cloud services.

� PlusServer has made great strides in the development and release of

plus.io as an agnostic platform for workload-spanning management

and continues to be one of the leaders for local mid-tier companies

and beyond.

� Further changes regarding the provider positioning: Axians has fallen

back from the Leader quadrant to the Product Challenger quadrant

in 2020, as ISG does not have sufficient references and revenues in

the managed public cloud services sector. NTT Group or the primarily

evaluated Dimension Data in 2019 as a subsidiary drops out of the Leader quadrant into the Product

Challenger quadrant, as ISG does not have enough business and presence in this market for mid-tier

companies. tecRacer was moved into the Contender Quadrant for major customers, and thus, removed

from the mid-tier quadrant, as the AWS specialist has the business focus there and is extremely

well-versed, but also operates comparatively in a one-dimensional way. Reply was completely removed,

as ISG did not receive enough validated information about the interaction of the brands in the Reply

universe, which are focused on individual hyperscalehyperscalers. All for One Group fell into the con-

tender quadrant, as none of the hyperscalers requested by customers had sufficient certifications and

consequently, no customer projects and/or sufficient sales could be presented to ISG. Syntax, formerly

Freudenberg IT, dropped into the Contender quadrant because they were too busy with themselves

and with the recent takeover, and lost visibility in the market outside of SAP-driven or ERP-driven

projects. QSC has fallen from the Product Challenger quadrant into the Contender quadrant, as there

are neither sufficient certifications nor customers, and therefore, not enough sales in this market. The

situation is similar with Allcloud and ratiokontakt in the fast-moving and highly competitive market for

managed public cloud services. BTC was unable to fully live up to the high expectations as a Rising Star

in 2019 and is stepping out of the spot, in part due to COVID-19.




5454

Executive Summary

IT leaders should read this report to better understand the relative strengths and weaknesses of enterprise filesharing services providers, as well as leading the digital transformation drive in their enterprises.

Software development, technology and security leaders should read this report to understand the positioning of enterprise filesharing services providers and gain a better understanding of how those providers’ offerings can impact the ongoing transformation initiatives.

Sourcing, procurement, and vendor management professionals should read this report to develop a better understanding of the current landscape of enterprise filesharing services providers in Germany.

ENTERPRISE CONTEXTSecure Enterprise Filesharing ServicesThis report is relevant to enterprises across industries in Germany, for evaluating providers of enterprise filesharing services.

In this quadrant report, ISG highlights the current market positioning of providers of enterprise filesharing services in Germany and the way they address the key challenges faced by enterprise clients in the country.

Enterprises are looking for a distributed environment where documents can be shared across and can be accessed securely by all the users through the SaaS model. Enterprises can benefit from enterprise filesharing services providers that can manage their data in the cloud and provide access to all the relevant users through a web browser, desktop, and mobile apps.

Filesharing providers can help by offering their domain expertise and services around an integrated dashboard for monitoring and control, access management, offline functionalities and synchronization, security features, backup and recovery, and third-party tools integrations. Furthermore, enterprises can benefit from leveraging AI/ML to gain actionable insights, personalized search results, and image search functionalities. ISG sees that enterprises are increasingly investing in filesharing and collaboration platforms with customized functionalities.




5555



DefinitionCloud file sharing providers offer companies services for storing and

accessing data in a SaaS model. The functionality includes file storage

of business-related documents that can be accessed via browser,

desktop or mobile application. These platforms also help companies

to synchronize data locally (on site) as well as in the cloud. File sharing

as-a-service also includes a marketplace for third-party integrations,

including email and productivity, social media management and project

management solutions.

SECURE ENTERPRISE FILESHARING SERVICES


*Remark: This quadrant mainly focuses on file sharing services and does

not analyse the specific characteristics of collaboration services, which are

covered in our IPL study on Digital Workplace Services.


5656


� Compatibility with popular office suites;

� Ability to provide real-time activity on files that multiple parties are

working on;

� Powerful administrative control options and secure access manage-

ment capabilities with a simple dashboard;

� Solid skills for integration of the desktop and offline functions;

� Ability to synchronize files across all connected devices such as

desktops, notebooks, mobile devices and tablets;

� Integration capabilities between operating systems such as Win-

dows, Android, Apple MacOS and iOS; Compatibility with file systems

such as FAT32, NTFS and Ext(4);

� Robust encryption of data (in motion and at rest) and a secure

encryption management solution;

� Extensive knowledge in the field of data recovery;

� Seamless integration with third-party software;

� Rollback feature that allows users to switch to an earlier version;

� Extensive functions for sharing files such as index numbering and full text search.

Eligibility Criteria




5757


The flexible use of data is more in demand now than ever. With the

modernization of the work environment, employees must now have

access to their data regardless of their location or device. Enterprise file

sharing offers a way to distribute data faster and more efficiently. The

advantages of file sharing are particularly evident in the easy release of

content and its shared use. Regardless of whether it's a smartphone,

tablet, notebook, PC or Mac®, customers can work with any content

they need. Business products such as MS Office 365 or CRM tools can

be integrated directly via API interfaces without leaving the file sharing

product. It increases productivity and optimizes teamwork.

The exchange activity is not only generated for internal employees,

but external partners are also included. However, the security of the

data must not be neglected: Above all, users want secure, encrypted

processing and secure access functions, release functions and synchro-

nization functions. The demand for file sharing platforms has increased

enormously, not least due to the COVID-19 pandemic. In the course of

sudden installation of home office workstations, solutions were sought

to realize optimal collaborative work on important documents and

processes that had become indispensable. The large, mostly international providers, which are

already well-known to private customers, such as Dropbox, Box, Microsoft with OneDrive or Citrix,

have the edge over others, and offer appropriate platforms for the enterprise environment, which

are globally distributed. Cloud-based solutions require the data to be hosted in redundant data

centers of the provider; in some cases, it is also possible to host the data on-premise. A number of

providers, including Brainloop, DRACOON, double Slash, d.velop and Owncloud, are providers from

Germany that offer a comprehensive service portfolio and security portfolio and guarantee that the

highly sensitive data is processed and hosted there, and does not leave the country.

� Brainloop offers a comprehensive enterprise file-sharing solution for the collaboration of

employees in the company as well as with external partners across company boundaries.

Well-known companies from all industries have been giving Brainloop a high level of satisfaction

for many years.

� Box is a global provider with a comprehensive portfolio of file-sharing service solutions for

simple to complex environments that are used by more than 97,000 companies.

� Citrix has been offering the file sharing product ShareFile for many years, which is used by over

65,000 companies worldwide. Comprehensive security tools ensure that the data does not fall

into the wrong hands.

Observations




5858


� d.velop offers with the product foxdox share a highly secure file

sharing and document management system based on open source.

The product is very much appreciated by companies that have to

process highly sensitive data.

� doubleSlash is a company in Friedrichshafen and offers with the

Business Filemanager, a comprehensive portfolio of functions that

can be individually expanded.

� DRACOON is a successful German provider and has a data center

and development capacities in Germany. The file sharing offering

is comprehensive and is the first choice for users of all sizes and

industries.

� Dropbox benefits from its positive image as a file sharing provider

for private customers. The robust solution is widely accepted by

companies around the world and also in Germany.

� Microsoft offers with OneDrive and Sharepoint an innovative solution that can satisfy custom-

ers of all sizes.

� ownCloud was chosen as a Rising Star and offers a file share solution based on an open source

code, with the option of flexibly making customer-specific adjustments.

Observations



5959

Executive Summary

ISG sees that enterprises in Germany are started the adoption of SAP HANA in their business processes. Enterprises in Germany are migrating their SAP workloads to cloud owing to the factors such as high flexibility and scalability that can be processed in redundant data centers for secure operations. Also, enterprises benefits from discounts from hyperscalers further decrease their cost of operations.

IT leaders should read this report to better understand the relative strengths and weaknesses of SAP HANA infrastructure services providers, as well as how these providers’ approaches to the market can impact enterprise public cloud strategies.

Software development and technology leaders should read this report to understand the relative positioning and capabilities of hyperscale SAP HANA infrastructure providers that can help them to procure infrastructure and services to migrate their workloads to public cloud platforms.

Sourcing, procurement, and vendor management professionals should read this report to develop a better understanding of the current landscape of SAP HANA infrastructure service providers in Germany.

ENTERPRISE CONTEXTSAP HANA Infrastructure ServicesThis report is relevant to enterprises across industries in Germany, for evaluating providers of SAP HANA infrastructure services for SAP S/4 HANA workloads and large-scale HANA databases.

In this quadrant report, ISG highlights the current market positioning of providers of SAP HANA infrastructure services in Germany, based on the depth of service offering and market presence.

Enterprises are facing the challenge of maintaining their own IT infrastructure specific to the SAP product line owing to factors such as high costs; difficulties in data management and change management; shortage of talent or skill. However, many enterprises have implemented or are implementing SAP HANA as a part of their digital transformation initiatives and are choosing the right hyperscale provider to overcome the challenges and address talent/skill gaps. This report can help with choosing the right hyperscale provider to migrate their SAP workloads.

Enterprises leverage hyperscalers compute resources, storage, and connectivity on a public cloud to host SAP workloads that facilitate, scaling based on usage and infrastructure operations. Along with the infrastructure, enterprises can also benefit from providers' expertise in data migration, system imaging, backup, restore, disaster recovery, resource usage, monitoring, and management dashboards.




6060



DefinitionThis quadrant examines cloud infrastructures best suited to host SAP's

software portfolio, focusing on SAP S/4HANA workloads and large HANA

databases. The participating providers offer Infrastructure-as-a-Service

(hyperscaled IaaS), including infrastructure operation, set-up, provision

and scaling capacity, according to a pay-as-you-go (PAYG) model.

IaaS tools should include data migration, system imaging, backup,

disaster recovery, resource usage monitoring, and management

dashboards. Tools can be part of the standard IaaS offering or can be

provided by partners in a marketplace.

Participating vendors should provide presales support to assist

customers with topics including migration planning, cloud architecture,

size and performance optimization, licensing, system and database

configuration, virtual private network configuration and third-party

solutions (toolsets).The support analysis focuses on the service partner

ecosystem of the vendor in terms of the ability to execute appropriate

migrations and operations. S/4HANA hosting, colocation and enterprise

cloud are excluded.

SAP HANA INFRASTRUCTURE SERVICES



6161


� IaaS including server, storage and connectivity especially for the SAP

product line;

� Storage capacity of over 6 TB;

� SAP-IaaS certified platform;

� Direct operation or at least one authorized partner that is responsi-

ble for the customer relationship and compliance with local regula-

tions regardless of the location of the data center.

Many SAP customers are considering moving their SAP applications from their own data centers

to the public cloud. SAP encourages customers to do so and is pushing the changeover to SAP S/4

HANA in the cloud. SAP partnerships have been concluded with the three large hyperscalers and

they have implemented the agreed requirements for S/4 HANA operation. The SAP HANA platforms

and infrastructure are SAP-certified, including powerful processors and databases; with the use of

proprietary tools, workloads can be simplified and smooth operation can be ensured. The services

are provided in redundant, highly secure data centers. Real-time analysis processing, high flexibility

in scalability at any time, use of existing applications and selection from a wealth of pre-packaged

applications from SAP partners offer users an environment that cannot be offered in on-premise

data centers. The market for SAP HANA infrastructure services has grown in Germany, with

numerous service providers offering similar services, including BTC, CANCOM, IBM and Deutsche

Telekom. In addition, local providers can score points with the promise that the data will not only

be processed in Germany, but will also remain in this country, a trump card that can be important

especially now that the European Court of Justice has brought down the Privacy Shield Agreement

between Europe and the U.S. and has proved to be unsettling for customers.



Observations



6262


� AWS is one of the largest SAP HANA providers worldwide and offers

a wide range of solutions for safe operation.

� BTC is a contact point at eye level for mid-tier companies and

promises customized solutions.

� CANCOM is a successful provider of cloud solutions and offers

Professional services in the SAP HANA infrastructure environment.

� Google (GCP) offers extensive services for SAP HANA basic operation

has had a partnership with SAP since 2017.

� IBM offers high-performance servers and a large selection of

operating systems for the operation of SAP HANA solutions.

� Microsoft maintains a long-term partnership of more than 25 years

with SAP and offers extensive services in the area of SAP HANA. The

two companies are characterized by their close cooperation, from

which users can reap benefits.

� T-Systems offers extensive expertise in everything to do with SAP

products and is a major provider of SAP HANA services.

Observations (Cont.)




T-SYSTEMS

T-Systems offers one of the most attractive SAP HANA offers, which promises secure

transformation into the cloud.

The pricing model offers billing by hours or months. For customers who only need short-term use of the IaaS facility, for example, for test purposes, billing within seconds would make sense.

T-System offers a comprehensive portfolio for SAP HANA users in the public cloud. What is still missing is the ability to set up edge computing, which has become an important factor in the IoT environment as a supplement to data center and cloud services.

Extensive support in the changeover to the cloud: T-Systems is rated by companies as one of the most secure and trustworthy companies. Solid project management with well-trained experts and in-depth SAP HANA knowledge contribute to the success of the migration and commissioning. Thanks to its many years of experience with SAP projects, T-Systems can provide a scalable infrastructure portfolio for SAP and SAP HANA that is highly valued by customers of all sizes and industries. T-Systems is an important partner for SAP when it comes to new developments, and helps to ensure that market requirements are implemented. On the way to the cloud, the migration will use its own framework. ”'Cloudifier for SAP” uses a modular system that maps the areas of cloud assessments, strategy consulting, blueprint and implementation and ensures that all issues are taken into account. The bluefield approach from SAP is also used for very complex migrations to SAP HANA platforms.

Short-term infrastructure deployment: The powerful IaaS solutions for SAP HANA offer the latest server technology for the use of SAP Appliance. T-Systems has the largest SAP customer base in Germany with the SAP hosting offering. When moving to the cloud, T-Systems can score points by ensuring that customers remain with their trusted partner. The customer is flexible in his choice of platform and can decide which cloud seems most suitable to him, the Open Telekom Cloud (OTC) as a public cloud, which is hosted redundantly in the T-Systems data centers, or a hybrid solution consisting of a public cloud and a private cloud

All SAP certifications: T-Systems has been classified by SAP as a SAP HANA Enterprise Cloud Premier Partner since 2016 and has all seven certifications that must be renewed every year and stand for a high level of competence.

T-Systems offers telecommunications services as well as public cloud services, cloud platform development, operating services and best practices, transformation consulting for building cloud services, and comprehensive SAP ERP and SAP HANA environments. In the course of more than 20 years of partnership with SAP, T-Systems has built up profound expertise in all industries, which is appreciated by more than 300 SAP HANA customers. The cloud and security sector is experiencing high growth, and has again been able to push earnings up by double digits in 2019.

Caution

Strengths

Overview


ISG Provider Lens™ Quadrant Report | November 2020 SAP HANA Infrastructure Services

6464

Executive Summary

ISG sees that enterprises in Germany have started migrating the workloads to public cloud platforms as a part of their digital journey. Enterprises leverages on-demand infrastructure functions from hyperscalers and their aPaaS services that offer low-code / no-code development. The increased overall demand for PaaS services accelerates the overall adoption in Germany for infrastructure providers. By moving to hyperscalers infrastructure, enterprises also benefit from improved data security and increased use of containerization and microservices technologies for application development and deployment.

IT leaders should read this report to better understand the relative strengths and weaknesses of hyperscale infrastructure and platform services providers, as well as how these providers’ approaches to the market can impact enterprise public cloud strategies, improve business agility, scalability, flexibility and reduce total cost of ownership.

Software development and technology leaders should read this report to understand the relative positioning and capabilities of hyperscalers that can help them to procure infrastructure and platform services to migrate their workloads to public cloud platforms.

IT and infrastructure head should read this report for a clear understanding of the strengths and weaknesses of service providers, comprehend the degree of partnership with hyperscalers and how they integrate the latest technologies/capabilities into their offerings to find a competitive edge in the market.

ENTERPRISE CONTEXTHyperscale Infrastructure and Platform ServicesThis report is relevant to enterprises across industries in Germany, for evaluating providers of hyperscale infrastructure & platform services.

In this quadrant report, ISG highlights the current market positioning of providers of hyperscale infrastructure and platform services in Germany, and the way they address the key challenges faced by enterprise clients in the country.

Enterprises are facing the challenge of maintaining their own IT infrastructure due to higher costs. Hence, the adoption of public cloud services across industries is on the rise and enterprises prefer multi-cloud setup to migrate their workloads to cloud. In 2020, the urge to move workloads to public cloud have become more pressing than ever and many enterprises are accelerating their migration journey. This report can help with choosing the right hyperscale platform to migrate their workloads.

Enterprises can benefit from investing in Infrastructure and platform services that can manage its infrastructure with regular (end-to-end) updates and help in enhancing processes and ensuring operational efficiency.

Enterprises leverages hyperscalers compute resources, middleware, and software on a public cloud in virtual or containerized software-defined environment and serverless architectures. Along with the infrastructure, enterprises can also benefit from PaaS services that includes persistent resources, business process management, collaboration networks, databases, analytics, and machine learning (ML) capabilities.




6565



DefinitionThis quadrant is aimed at providers who offer virtual computing

resources, middleware and software in a public cloud. Customers

consume infrastructure and platform (micro)services as on-demand

and Web-centric services. Typical services in the IaaS segment include

computing services, storage and network resources, all of which are

provided in virtual or containerized, software-defined form and rounded

off by serverless architectures. The hyperscale PaaS segment offers

several microservices and runtime engines for predefined cloud-based

application development processes, which typically cover the entire

life-cycle of a developer who has to create or modernize applications.

Services include middleware, persistent resources, business process

management, collaborative networks, databases, and analytics and

machine learning (ML) skills. Internal and external (third-party) services

are also made available via marketplaces. In addition, IaaS or PaaS

providers support and manage ISVs during their go-to-market activities.

HYPERSCALE INFRASTRUCTURE AND PLATFORM SERVICES



6666


� Innovative portfolio of infrastructure services (computing

power, storage, network, backup, etc.) and container management

functions;

� Powerful and resilient data center infrastructure;

� Easy access, transparent prices, dynamic (consumption-dependent)

and fixed (reserved) billing models;

� Recognized standards and certifications, strong focus on data

protection and a sophisticated cybersecurity approach;

� Support for Infrastructure as Code (IaC) and serverless computing

in combination with highly automated provisioning, event triggering

and failover;

� Test and development environments, including workloads and log/report functionality

for rollouts;

� Support for multiple development tools, operating systems, technologies, and platform

management automations;

� Workflow support for agile development methods (Scrum);

� Open architecture, interoperability and well-documented (Web service) APIs or Middleware/

Integration layers for connecting multiple clouds or services and platforms;

� Specialized partner program with a broad partner ecosystem to support local customer

requirements.





6767


The IaaS services and platform services market is experiencing

significant demand; there are various reasons. The wave of digitization

requires a flexible, scalable infrastructure environment that cannot

be implemented with conventional on-premise environments, which

means that the infrastructure is outsourced. Another recent aspect is

the COVID-19pandemic, which has forced many employees to work

from home so that remote workplaces had to be made available at

short notice. As a result, the demand for collaboration tools increased,

which in turn led to the increased provision of IaaS and PaaS services

with hardware and software. These and many other reasons contribute

to the fact that the services of the large hyperscalers AWS, Microsoft

and Google are heavily used, and allow market shares to continue to

grow. The offerings are expanded and modernized with new services;

Serverless functions, Kubernetes compatibility, the use of artificial

intelligence (AI) and machine learning (ML) will accelerate and simplify

operations. AWS maintains its leading position and is globally well-

positioned with a 45% market share. Thanks to many positive customer

experiences and perfect cooperation, AWS is also number one in Germany. Microsoft Azure is expanding

its offering and market share, not least due to the high number of long-term Microsoft users, and tries

to convince AWS customers of the range of services. Third in the group, Google, with the Google Cloud

Platform (GCP), is very agile and scores not only with an attractive range of services, but also with low

prices. However, the cloud IaaS market in Germany consists not only of the large hyperscale providers,

but also of many service providers, such as Deutsche Telekom, OVH and IONOS, which offer an extensive,

attractive portfolio and can also make the promise that the data will not only be processed in Germany,

but will also remain in this country, a trump card that can be of particular importance now that the

European court has brought down the Privacy Shield Agreement between Europe and the U.S. and has

proved to be unsettling for many users.

� AWS is the leading provider of hyperscale Infrastructure-as-a-Service; AWS is highly innovative, acts

close to customers and their needs and brings a very dynamic partner environment with in-depth

qualifications.

� Google is the provider with the smallest market share among the large hyperscalers, but increased in

the last year by 1.2% to 5.3% at present. Google convinces customers and partners in this country with

a focused and modern offering that is attractive to customers with low prices and attractive IaaS and

PaaS or machine learning features.

Observations




6868


� IBM offers a comprehensive IaaS and PaaS offer with its IBM Cloud,

which has become more attractive through the Red Hat takeover.

� Microsoft goes with Azure further ahead and is one of the big

leaders in Germany. The range of IaaS solutions and the traditionally

strong PaaS portfolio will continue to contribute to growth. Globally,

Microsoft Azure was able to increase its market share by 2.4%

to 18%.

� Red Hat offers, independent of IBM, the open source OpenShift

platform software products for the development of container

solutions that are in demand in many industries.

� T-Systems has further developed the OTC platform operated by T-Systems. With the extensive

range of services and the security that data is stored in this country, the offer is a real alternative

to the U.S. competitors.

� IONOS offers with the IONOScloud is a high-performance, flexible and inexpensive offer and fo-

cuses on medium-sized companies in Europe. IONOS was able to improve its position compared

to the previous year and was once again named Rising Star.

Observations




T-SYSTEMS

T-Systems is a real alternative to its U.S. competitors, can score points with an extensive cloud offering and

guarantee that data is stored in Europe.

The OTC offering has significantly increased in visibility but needs to be further advanced in order to catch up with the hyperscalers.. The underlying technology is from Huawei, which is viewed with suspicion by many customers and is a problem for regulated customers. A solution has to be found urgently, because the reputation, security and trust were the unique selling point and the figurehead of Deutsche Telekom and T-Systems and that should not be gambled away.

The geographical locations of the two data centers in Biere and Magdeburg do not comply with the BSI recommendations that the distance between data centers should be 200 kilometers. The new data center in Amsterdam is a first approach that should be expanded further.

Security: Security plays a major role at T-Systems. Compliance with the GDPR guidelines is guaranteed by the storage and exclusive processing of the data in highly secure, multi-certified German data centers.

Comprehensive range of services: In addition to cloud operation, extensive services such as container management, integration of applications via API interfaces, the use of artificial intelligence and machine learning, the use of bare metal and database support are offered by various product manufacturers.

Data storage everywhere: With the Open Telekom Cloud Hybrid Solution, the OTC can be used in the cloud or locally as a private cloud on dedicated servers. T-Systems operates the private instances of the Open Telekom Cloud in its own data centers in Magdeburg or Biere. Alternatively, T-Systems can implement and operate the necessary infrastructure in the customer's data center on request. The software and hardware environment is uniform in both instances and ensures seamless operation between private and public cloud environments.

The Open Telecom Cloud Platform (OTC) is a product of Deutsche Telekom and is managed by T-Systems International. T-Systems is part of Deutsche Telekom. The OTC services include IaaS and PaaS solutions; they cover private, public and hybrid models. The offer is available in Germany and around 20 other countries. With around 43,000 employees, T-Systems was able to achieve sales growth from €100 million to €1.6 billion Euros in 2019. Numerous customers in Germany, mainly from mid-tier companies, use the services and are very satisfied with the performance.

Caution

Strengths

Overview


ISG Provider Lens™ Quadrant Report | November 2020 Hyperscale Infrastructure and Platform Services

Methodology

Methodology


7171

The research study “ISG Provider Lens™ Public Cloud – Solutions & Services 2020”

analyzes the relevant software vendors/service providers in Germany, based on a

multi-phased research and analysis process. It positions these providers based on

the ISG Research methodology. The study was divided into the following steps:

1. Definition of the Public Cloud – Solutions & Services market.

2. Use of questionnaire-based surveys of service providers/vendors across all

trend topics.

3. Interactive discussions with service providers/vendors on capabilities and use

cases.

4. Leverage ISG’s internal databases and advisor knowledge and experience

(wherever applicable).

5. Detailed analysis and evaluation of services and service documentation

based on the facts and figures received from providers and other sources.

6. Use of the following key evaluation criteria:

− Strategy & vision

− Innovation

− Brand awareness and presence in the market

− Sales and partner landscape

− Breadth and depth of portfolio of services offered

− Technology advancements

METHODOLOGY


Authors and Editors

Heiko Henkes is a Director and Principal Analyst at ISG; in his role as Global IPL Content Lead, he is responsible for strategic business management and acts as thought leader of ISG’s team of research analysts. His core competencies are in the areas of defining derivations for all types of companies within their IT-based business model transformation. He builds the bridge between IT trend topics and acts as keynote speaker on current and future IT trends. Heiko has over 12 years’ experience in IT consulting, primary and secondary market research and provider GTM strategies.His research Focus: Digital Business Transformation, Cloud and Edge Computing, Mobile Business, Change Management and Mixed Reality.

Heiko Henkes, AuthorLead Analyst


Wolfgang Heinhaus has more than 25 years of IT infrastructure experience and was in a managerial role in a global food company. He has more than 8 years of extensive research experience in the fields of colocation services, IT infrastructure, IT security and cloud computing. He has written several IPL studies for the German and Swiss markets and also advises customers on these topics.

Wolfgang Heinhaus, Author Principal Analyst



Jonathan Siefke advises clients from different businesses areas (Healthcare, Automotive, Business Advisory, Government, Insurance) since more than ten years in different transformation and migration projects. His clients take advantage from his deep, knowledge about technical and organization processes. As Architect, Project Manager or Consultant he fits and serve a wide range of skills.

Jonathan Siefke, AuthorLead Analyst

Prakash N is a senior analyst at ISG and is responsible for supporting and co-authoring Provider Lens™ studies on Private Hybrid Cloud Data Center, Public Cloud Transformational Services and Cloud Native – Container Services. His area of expertise is in cloud, data center, public cloud platforms and cloud native services. He has developed content for Provider Lens™ in the areas of private and public Cloud. Prakash has authored industry and service line focused reports on automotive, retail and CPG that focus on the IT outsourcing market. Prakash develops content from an enterprise perspective and authors the global summary report. He also collaborates with advisors and enterprise clients on ad-hoc research assignments and writes articles about niche technologies, market trends and insights.

Prakash N, Enterprise Context and Global Overview Analyst Senior Analyst


Authors and Editors


Katharina Kummer is a research analyst at ISG and is responsible for supporting and co-authoring Provider Lens™ studies on Public Cloud Transformational Services, Private Hybrid Cloud Data Center, Data Analytics, Microsoft Ecosystem and Cloud Native – Container Services. Her areas of expertise lie in cloud, data centers, cloud native services, digital linguistics and NLP. Katharina develops content from an enterprise perspective and author the global summary report. Along with this, she supports the lead analysts in the research process and ad-hoc research assignments and writes articles about niche technologies, market trends and insights.

Katharina Kummer, Enterprise Context AnalystSenior Analyst


Authors and Editors

ISG Provider Lens™ | Quadrant ReportNovember 2020© 2020 Information Services Group, Inc. All Rights Reserved

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 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 man-agement; 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 tech-nology 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.

http://www.isg-one.com

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