Demand for flexible, scalable resources for GenAI helps drive strategic adoption of cloud services, ISG Provider Lens™ report says

U.S. adoption of cloud services continues to grow and change in multiple industries, expanding the market for services from AWS and its ecosystem partners, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2024 ISG Provider Lens™ AWS Ecosystem Partners report for the U.S. finds companies are turning to AWS for secure, scalable cloud-based infrastructure they can use to become more agile. Seeking long-term competitiveness, the firms are using the cloud in new ways to innovate and enhance operations.

“U.S. enterprises are adopting cloud services strategically, launching initiatives with specific goals, such as establishing DevOps frameworks,” said Bernie Hoecker, partner, Enterprise Cloud Transformation leader, ISG. “Cost, security and resilience are becoming necessities.”

Companies are shifting more on-premises infrastructure to AWS, driving up demand for cloud migration services in the U.S., the report says. To maximize the value of their AWS investments, firms are also seeking post-migration services, including cost optimization, performance tuning and reviews of cloud architecture. It is becoming more common for enterprises to outsource cloud infrastructure management and operations.

U.S. enterprises are combining AI with analytics for improved decision-making, forecasting and customer experience, taking advantage of core benefits of cloud infrastructure, ISG says. Many are investing in real-time analytics to meet a growing need for quick decisions. Custom AI and ML models designed for specific business objectives, such as anticipating retail store demand and personalizing shopping experiences, give companies a competitive edge.

Generative AI (GenAI) is becoming a major driver of cloud computing and storage use in the U.S., ISG says. This is especially true in the country’s massive retail sector and banking, financial services and insurance industries, which rely on positive customer experiences for success. AWS and its provider partners are devoting significant resources to supporting GenAI with scalable and elastic cloud resources.

“GenAI is opening up new possibilities in many industries,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “The AWS ecosystem is emerging as a key enabler for GenAI applications.”

AWS is also a preferred platform for running SAP workloads, with many U.S. enterprises turning to AWS and its partners for SAP S/4HANA transformations, the report says. The high-performance computing, scalable storage and security features of AWS have made it especially attractive to large enterprises migrating complex SAP landscapes to S/4HANA.

The report also explores other trends affecting the AWS ecosystem in the U.S., including the growing popularity of hybrid and multi-cloud strategies and an increasing focus on cloud sustainability.

For more insights into the cloud challenges facing U.S. enterprises, including how to comply with a growing number of regulations and take advantage of new technologies on the horizon, plus ISG’s advice for addressing these issues, see the ISG Provider Lens™ Focal Points briefing here.

The 2024 ISG Provider Lens™ AWS Ecosystem Partners report for the U.S. evaluates the capabilities of 49 providers across four quadrants: AWS Professional Services, AWS Managed Services, AWS Data Analytics, AI and ML and AWS SAP Workloads.

The report names Accenture, Capgemini, Cognizant, Deloitte, HCLTech, Infosys, LTIMindtree, Rackspace Technology, TCS and Wipro as Leaders in all four quadrants. It names DXC Technology, PwC and Tech Mahindra as Leaders in three quadrants each. Hexaware and IBM are named as Leaders in two quadrants each, and Genpact, Kyndryl and Persistent Systems are named as Leaders in one quadrant each.

In addition, Genpact, Kyndryl, Persistent Systems, PwC, Quantiphi and Tech Mahindra are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

In the area of customer experience, Persistent Systems is named the global ISG CX Star Performer for 2024 among AWS ecosystem providers. Persistent Systems earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.

Customized versions of the report are available from DXC Technology, Persistent Systems, and Rackspace Technology.

The 2024 ISG Provider Lens™ AWS Ecosystem Partners report for the U.S. is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

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