Managed services, managed hosting and
colocation providers deliver skills and expertise as agencies
quickly modernize IT, ISG Provider Lens™ report says
Many public-sector organizations in the U.S. are turning to
service providers for assistance in getting maximum value from
hybrid cloud implementations, 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™ Private/Hybrid Cloud — Data Center
Services report for the U.S. Public Sector finds that the use of
managed cloud services, managed hosting and colocation by U.S.
state, local and educational (SLED) agencies has risen by as much
as 30 percent since 2020. Demand has grown following digital
transformations triggered by the COVID-19 pandemic, which forced
agencies to better accommodate remote work and digital constituent
services. It is expected to keep growing as agencies seek to
cost-effectively manage, scale and secure complex IT
infrastructure.
“Many public-sector organizations that have implemented new
technologies and services are just beginning to understand what
they have created,” said Nathan Frey, partner and lead, ISG Public
Sector, for the U.S. “Providers offer essential expertise and
infrastructure.”
Agencies are adopting hybrid cloud models to enjoy the benefits
of public and private clouds and colocation services for different
types of workloads, the report says. They are taking on these
complex environments despite a chronic IT labor shortage in the
public sector, and managed service providers often provide the
necessary coordination.
ISG predicts U.S. SLED organizations’ use of managed cloud
services will increase by as much as 15 percent per year through at
least 2027. Providers are tailoring services to meet requirements
specific to the public sector. In addition to cloud management,
scalability and security, providers often help agencies upgrade
decades-old systems and move them to the cloud when modernization
reveals the limitations of these technologies.
Many agencies that lack IT management and support expertise are
using managed hosting, the report says. These services include
server maintenance, security updates and troubleshooting for a
fixed monthly fee, which makes budgeting easier.
Colocation remains a popular element of public-sector IT
modernization, ISG says. As they migrate to the cloud, most
agencies discover some legacy applications that require such tight
control that they cannot be moved to a cloud or managed hosting
platform. Colocation services offer pay-per-use pricing for
enhanced security and compliance, scalability and disaster recovery
at geographically dispersed sites.
“Colocation adoption is surging in the public sector,” said Jan
Erik Aase, partner and global leader, ISG Provider Lens Research.
“It gives agencies a secure and reliable foundation for handling
growing data and security concerns.”
The report also explores other trends affecting public sector
cloud use, including the effects of recent federal grants for SLED
IT improvement and providers’ increasing interest in the
sector.
For more insights into the cloud challenges of SLED
organizations, including the obstacles created by fragmented cloud
migration and the complexity of determining which data and
applications can be moved, plus ISG’s advice on these topics, see
the ISG Provider Lens™ Focal Points briefing here.
The 2024 ISG Provider Lens™ Private/Hybrid Cloud — Data Center
Services report for the U.S. Public Sector evaluates the
capabilities of 38 providers across three quadrants: Managed
Services, Managed Hosting and Colocation Services.
The report names Rackspace Technology as a Leader in all three
quadrants. It names Ensono, Kyndryl and Unisys as Leaders in two
quadrants each. Accenture, CGI, Equinix, IBM, Infosys, Iron
Mountain, NTT Global Data Centers, TCS, TierPoint and Wipro are
named as Leaders in one quadrant each.
In addition, Zones is named as a Rising Star — a company with a
“promising portfolio” and “high future potential” by ISG’s
definition — in one quadrant.
In the area of customer experience, Green is named the global
ISG CX Star Performer for 2024 among private/hybrid cloud service
providers. Green 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.
A customized version of the report is available from Zones.
The 2024 ISG Provider Lens™ Private/Hybrid Cloud — Data Center
Services report for the U.S. Public Sector is available to
subscribers or for one-time purchase on this webpage.
About ISG Provider Lens™ Research
The ISG Provider Lens™ Quadrant research series is the only
service provider evaluation of its kind to combine empirical,
data-driven research and market analysis with the real-world
experience and observations of ISG's global advisory team.
Enterprises will find a wealth of detailed data and market analysis
to help guide their selection of appropriate sourcing partners,
while ISG advisors use the reports to validate their own market
knowledge and make recommendations to ISG's enterprise clients. The
research currently covers providers offering their services
globally, across Europe, as well as in the U.S., Canada, 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 and automation, cloud and data analytics; sourcing
advisory; managed governance and risk services; network carrier
services; strategy and operations design; change management; market
intelligence and technology research and analysis. Founded in 2006,
and based in Stamford, Conn., ISG employs more than 1,600
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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version on businesswire.com: https://www.businesswire.com/news/home/20240717333709/en/
Press Contacts:
Will Thoretz, ISG +1 203 517 3119 will.thoretz@isg-one.com
Julianna Sheridan, Matter Communications for ISG +1 978-518-4520
isg@matternow.com
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