German Enterprises Look to Public Cloud to Enable Digital Transformation

ISG Provider Lens report sees German companies also using cloud to adopt containers, artificial intelligence and other next-gen technologies

FRANKFURT, Germany, Dec. 03, 2020 (GLOBE NEWSWIRE) -- Enterprises in Germany are adopting public cloud technologies to create a digital foundation for future transformations, with the continuing remote work environment fueling the need for software-as-a-service and cloud-based business intelligence services, according to a new report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2020 ISG Provider Lens Public Cloud – Solutions and Services Report for Germany also finds many enterprises in the country taking hybrid IT or multi-cloud approaches when moving to the public cloud. German companies use an average of 2.5 public cloud providers, the report says.

“Cloud investments made now lay the digital foundation for a company,” said Andrea Spiegelhoff, partner at ISG DACH. “Public cloud adoption is the first step for German companies in the entire digital transformation journey.”

The ongoing COVID-19 pandemic is driving demand for cloud services such as cloud-based workstations, the report adds.

With many German enterprises already having defined their public cloud strategies before the pandemic, they will need to adjust their governance, risk and compliance models to adjust to new demands for cloud services, the report adds. Companies need to engage experts who are familiar with contracts and industry-specific regulations, the report recommends.

The report sees cloud service providers looking to partner with hyperscalers, with hyperscale certifications becoming increasingly important for providers. Service providers have continued to take advantage of training and certification courses during the pandemic, with some also working to develop industry-specific cloud transformation skills.

Many German enterprises see cloud consulting and managed servicers as critical to the success of digital transformation, the report adds. With a shortage of experienced specialists in the country, many companies are turning to service providers to manage their cloud services.

In addition, German enterprises are looking to consulting and transformation service providers to help them manage and innovate their customer experience, the report says.

In the area of governance, risk and compliance services, many German companies are outsourcing these functions to service providers that have expertise in highly specialized areas, the report adds. In the past, concerns about data protection slowed the adoption of cloud services in Europe, but large management consultancies are helping many companies comply with privacy regulations.