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U.S. Firms Seek Service Partners for AI-Ready Hybrid Clouds
U.S. Firms Seek Service Partners for AI-Ready Hybrid Clouds

Yahoo

time3 days ago

  • Business
  • Yahoo

U.S. Firms Seek Service Partners for AI-Ready Hybrid Clouds

Enterprises see promise in AI but need help building and running infrastructure amid rising cost pressures, ISG Provider Lens® report says STAMFORD, Conn., July 15, 2025--(BUSINESS WIRE)--As enterprises in the U.S. execute hybrid multicloud strategies, many are turning to service providers that use AI and automation to ease cloud and data center management, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm. The 2025 ISG Provider Lens® Private/Hybrid Cloud — Data Center Services report for the U.S. finds that the rapid adoption of technologies such as generative AI and large language models (LLMs) has created unprecedented demand for data processing and storage, making data centers even more critical for enterprise operations. Service providers are helping organizations address many data center challenges, especially the need for scalability, high-speed connectivity and regulatory compliance. "AI is transforming the digital landscape, and data centers are at the heart of these changes," said Anay Nawathe, ISG cloud delivery lead for the Americas. "Service providers are delivering the tools and expertise enterprises need to build infrastructure that supports AI." Providers are helping companies virtualize workloads, move them to cloud or colocation data centers and manage them with cloud-agnostic tools, the report says. The transition from traditional data centers to cloud-based infrastructure can improve scalability, security and efficiency. Reducing IT spending is a growing priority for U.S. enterprises as they face macroeconomic uncertainty on several fronts. Providers' managed services include observability and automation to improve enterprise cloud operations and FinOps frameworks to manage cloud costs. AI and ML bring valuable new capabilities to managed services for both private and hybrid clouds, ISG says. These include algorithms to analyze real-time data and logs and metrics to detect anomalies and forecast disruptions. Many U.S. enterprises want to use AI and ML but do not know how to start. They seek AI-ready infrastructure consulting that includes design, implementation and management. Enterprises distributing workloads across private and public clouds need to optimize the placement of those workloads to gain the full benefits of cloud-based computing. They are taking advantage of AI-powered features in managed services that automatically determine the best placement of each workload based on cost, performance requirements, resource availability and regulations. Security is a high priority for companies that migrate data and applications to hybrid clouds, and providers are integrating security operations into their services, ISG says. Enterprises use these features, including continuous monitoring, advanced threat detection and rapid incident response mechanisms, to ensure a consistent security posture across all managed environments. "Companies are trusting critical workloads to hybrid clouds and the services that manage them," said Shashank Rajmane, senior manager and principal analyst, ISG Provider Lens Research, and author of the report. "They rely on service providers to enforce security policies and automate data governance and compliance across all parts of that distributed infrastructure." The report also explores other U.S. trends related to hybrid cloud services, including advances in software-defined data centers and growing investments in DevOps and containerization for consistent application development and management. For more insights into U.S. enterprise challenges related to data centers and hybrid clouds, plus ISG's advice for addressing them, see the ISG Provider Lens® Focal Points briefing here. The 2025 ISG Provider Lens® Private/Hybrid Cloud — Data Center Services report for the U.S. evaluates the capabilities of 71 providers across five quadrants: Managed Services — Large Accounts, Managed Services — Midmarket, Managed Hosting, Colocation Services and AI-Ready Infrastructure Consulting. The report names Kyndryl and NTT DATA as Leaders in three quadrants each. It names Accenture, Capgemini, Cognizant, DXC Technology, Ensono, Rackspace Technology and TCS as Leaders in two quadrants each. Centersquare, CoreSite, CyrusOne, DataBank, Deloitte, Digital Realty, Equinix, Flexential, HCLTech, Hexaware, IBM, Infinite Computer Solutions, Infosys, Microland, Mphasis, PwC, QTS, Unisys, UnitedLayer and Wipro are named as Leaders in one quadrant each. In addition, Coforge and HPE 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 2025 among private/hybrid cloud data center service 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 Unisys and UnitedLayer. The 2025 ISG Provider Lens® Private/Hybrid Cloud — Data Center Services 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 (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world's top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments. View source version on Contacts Press Contacts:Laura Hupprich, ISG+1 203 517 Julianna Sheridan, Matter Communications for ISG+1 978-518-4520isg@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Hybrid Clouds Aid U.S. Public Sector's IT Transformation
Hybrid Clouds Aid U.S. Public Sector's IT Transformation

Yahoo

time3 days ago

  • Business
  • Yahoo

Hybrid Clouds Aid U.S. Public Sector's IT Transformation

State and local agencies turn to service providers for urgent system modernization under budget, workforce limitations, ISG Provider Lens® report says STAMFORD, Conn., July 16, 2025--(BUSINESS WIRE)--Many agencies in the U.S. public sector are turning to hybrid cloud managed services to replace outdated legacy systems amid budget and staffing constraints, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm. The 2025 ISG Provider Lens® Private/Hybrid Cloud — Data Center Services report for the U.S. Public Sector finds that state, local and educational (SLED) organizations are focusing their technology investments on modernization, cybersecurity and hybrid clouds. The growth of the SLED IT market is slowing due to limited resources and recent changes in the federal government. Despite these hurdles, 90 percent of SLED agencies are expected to adopt hybrid cloud models. "U.S. public agencies are looking for IT modernization projects with measurable outcomes, provided through AI-powered tools and automation," said Nathan Frey, ISG partner and lead, U.S. Public Sector. "They are relying on managed service providers to administer their IT assets and supply the skills necessary for digital transformation." Legacy systems in the public sector, some of them decades old, burden agencies with high costs and inefficiencies while keeping them from meeting constituents' evolving service expectations, the report says. Most agencies want to replace outdated systems with secure, scalable cloud-based solutions but lack the in-house expertise to do this. Managed service providers facilitate infrastructure upgrades for better IT performance, security and compliance, along with specialized knowledge to ensure applications gain the benefits of hybrid cloud environments. As they transition to complex, modern IT architectures, public agencies are also embracing automation and AI for IT operations (AIOps), ISG says. These capabilities can identify potential issues early, preventing major failures, and automate repetitive tasks. AIOps also helps organizations sift through the large volumes of data the public sector generates to glean actionable insights and make useful predictions. Data management is becoming critical for SLED agencies as they seek to deliver better services and make more informed policy decisions, the report says. Comprehensive solutions from managed services providers, encompassing data storage, enhanced security and advanced analytics, allow organizations to organize and protect sensitive data. To remain financially sustainable while advancing their IT capabilities, public-sector agencies are implementing FinOps tools from service providers to control cloud costs, the report says. Many are also taking advantage of pay-as-you-go service contracts that let them align their IT expenditures directly with usage. Emerging automation capabilities are also reducing operating costs by streamlining processes. "Advanced cloud service models enable public agencies to improve operations despite significant, ongoing resource limitations," said Shashank Rajmane, senior manager and principal analyst, ISG Provider Lens Research, and author of the report. "Ultimately, technology improvements allow them to make government processes quicker and more intuitive for users, fostering greater engagement with citizens." The report also explores other private and hybrid cloud trends in the U.S. public sector, including the impact of complex, evolving IT regulatory requirements and a growing urgency to eliminate data silos for better data sharing among agencies. For more insights into the cloud challenges facing U.S. public-sector agencies, along with ISG's advice for addressing them, see the ISG Provider Lens® Focal Points briefing here. The 2025 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, NTT DATA and Unisys as Leaders in two quadrants each. Accenture, CGI, Equinix, HPE, IBM, Infosys, Iron Mountain and TierPoint are named as Leaders in one quadrant each. In the area of customer experience, Persistent Systems is named the global ISG CX Star Performer for 2025 among private/hybrid cloud data center service 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. A customized version of the report is available from Unisys. The 2025 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 (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world's top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments. View source version on Contacts Press Contacts:Laura Hupprich, ISG+1 203 517 Julianna Sheridan, Matter Communications for ISG+1 978-518-4520isg@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Hybrid, Multicloud Strategies Gain Traction in U.K.
Hybrid, Multicloud Strategies Gain Traction in U.K.

Associated Press

time3 days ago

  • Business
  • Associated Press

Hybrid, Multicloud Strategies Gain Traction in U.K.

LONDON--(BUSINESS WIRE)--Jul 17, 2025-- Enterprises across the U.K. are rapidly modernizing their cloud infrastructures, motivated by a surge in AI and ML workloads that demand scalable and secure cloud solutions, according to a new research report published today by Information Services Group ( ISG ) (Nasdaq: III ), a global AI-centered technology research and advisory firm. The 2025 ISG Provider Lens ® Private/Hybrid Cloud — Data Center Services report for the U.K. finds an upward trend in the adoption of hybrid and multicloud infrastructure models, with significant growth anticipated within the next three years. Performance, data sovereignty, security and regulatory pressures are the primary drivers of this growth. Hybrid cloud is now the preferred model for many U.K. enterprises, because it lets organizations align workloads with appropriate environments and improve data protection. 'U.K. enterprises are actively transitioning toward hybrid and multicloud platforms to support AI and ML workloads and safeguard sensitive data,' said Anthony Drake, partner at ISG. 'These flexible platforms are crucial for protecting organizations against ransomware and malware threats and for achieving cost efficiency.' Enterprises in the U.K. are using hybrid clouds to enhance security with private cloud resources while simultaneously gaining cost savings and flexible scalability from public clouds, ISG says. Increasingly, they are deploying real-time monitoring and ML within private clouds to strengthen data protection, particularly in highly regulated sectors such as healthcare and finance. As organizations embrace cloud environments, they are engaged in large-scale migration of business applications. Most organizations in the U.K. have migrated applications between environments to improve efficiency, capacity, security and innovation, the report says. Companies are optimizing on-premises and private cloud environments by integrating graphics processing units (GPUs) and expanding storage capacities. This approach eases handling of AI and analytical tasks while improving efficiency and resource utilization. Small and midsize enterprises (SMEs) in the U.K. are focused on developing customized cloud solutions to meet industry-specific demands. The uptake of modular data center designs is also on the rise, owing to their low total cost of ownership and accelerated deployment capabilities, ISG says. The U.K. government's designation of data centers as critical infrastructure, coupled with streamlined planning laws, facilitates new data center projects and reinforces a national focus on data protection. The capacity of U.K. data centers is expected to increase twofold by 2028, mainly driven by growing demand for generative AI (GenAI), cloud computing and government-supported infrastructure. 'The U.K.'s cloud market is undergoing rapid transformation, with organizations seeking agility through tailored solutions and modular data center designs,' said Meenakshi Srivastava, lead analyst, ISG Provider Lens Research, and lead author of the report. 'By 2025, 75 percent of enterprise data will be processed outside traditional data centers or cloud environments, indicating a shift in data management practices.' The report also explores other trends related to private/hybrid cloud and data center services in the U.K., including an increased emphasis on sustainability and the integration of agentic AI into hybrid and private cloud environments. For more insights into the private/hybrid cloud and data center services challenges that enterprises in the U.K. face, plus ISG's advice for overcoming them, see the ISG Provider Lens ® Focal Points briefing here. The 2025 ISG Provider Lens ® Private/Hybrid Cloud — Data Center Services report for the U.K. evaluates the capabilities of 69 providers across five quadrants: Managed Services — Large Accounts, Managed Services — Midmarket, Managed Hosting, Colocation Services and AI-Ready Infrastructure Consulting. The report names Fujitsu and Kyndryl as Leaders in three quadrants each. It names Accenture, Capgemini, Claranet, DXC Technology, Ensono, Hexaware, Infosys, Pulsant, Rackspace Technology, T-Systems and TCS as Leaders in two quadrants each. Atos, Computacenter, Deloitte, Digital Realty, Equinix, Global Switch, HCLTech, IBM, LTIMindtree, NTT DATA, Redcentric, Telefonica Tech, Telehouse, Unisys and Wipro are named as Leaders in one quadrant each. In addition, LTIMindtree, Mphasis and NTT DATA 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 2025 among private/hybrid cloud and data center service 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 Hexaware and Unisys. The 2025 ISG Provider Lens ® Private/Hybrid Cloud — Data Center Services report for the U.K. 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 (Nasdaq: III ) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world's top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments. View source version on CONTACT: Sarah Ye, ISG +44 7833 567868 [email protected] Laura Hupprich, ISG +1 203 517 3132 [email protected] KEYWORD: EUROPE IRELAND UNITED KINGDOM INDUSTRY KEYWORD: TECHNOLOGY CONSULTING SECURITY PROFESSIONAL SERVICES SOFTWARE NETWORKS INTERNET DATA MANAGEMENT ARTIFICIAL INTELLIGENCE SOURCE: Information Services Group, Inc. Copyright Business Wire 2025. PUB: 07/17/2025 05:00 AM/DISC: 07/17/2025 05:00 AM

Hybrid, Multicloud Strategies Gain Traction in U.K.
Hybrid, Multicloud Strategies Gain Traction in U.K.

Globe and Mail

time3 days ago

  • Business
  • Globe and Mail

Hybrid, Multicloud Strategies Gain Traction in U.K.

Enterprises across the U.K. are rapidly modernizing their cloud infrastructures, motivated by a surge in AI and ML workloads that demand scalable and secure cloud solutions, according to a new research report published today by Information Services Group ( ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm. The 2025 ISG Provider Lens ® Private/Hybrid Cloud — Data Center Services report for the U.K. finds an upward trend in the adoption of hybrid and multicloud infrastructure models, with significant growth anticipated within the next three years. Performance, data sovereignty, security and regulatory pressures are the primary drivers of this growth. Hybrid cloud is now the preferred model for many U.K. enterprises, because it lets organizations align workloads with appropriate environments and improve data protection. 'U.K. enterprises are actively transitioning toward hybrid and multicloud platforms to support AI and ML workloads and safeguard sensitive data,' said Anthony Drake, partner at ISG. 'These flexible platforms are crucial for protecting organizations against ransomware and malware threats and for achieving cost efficiency.' Enterprises in the U.K. are using hybrid clouds to enhance security with private cloud resources while simultaneously gaining cost savings and flexible scalability from public clouds, ISG says. Increasingly, they are deploying real-time monitoring and ML within private clouds to strengthen data protection, particularly in highly regulated sectors such as healthcare and finance. As organizations embrace cloud environments, they are engaged in large-scale migration of business applications. Most organizations in the U.K. have migrated applications between environments to improve efficiency, capacity, security and innovation, the report says. Companies are optimizing on-premises and private cloud environments by integrating graphics processing units (GPUs) and expanding storage capacities. This approach eases handling of AI and analytical tasks while improving efficiency and resource utilization. Small and midsize enterprises (SMEs) in the U.K. are focused on developing customized cloud solutions to meet industry-specific demands. The uptake of modular data center designs is also on the rise, owing to their low total cost of ownership and accelerated deployment capabilities, ISG says. The U.K. government's designation of data centers as critical infrastructure, coupled with streamlined planning laws, facilitates new data center projects and reinforces a national focus on data protection. The capacity of U.K. data centers is expected to increase twofold by 2028, mainly driven by growing demand for generative AI (GenAI), cloud computing and government-supported infrastructure. 'The U.K.'s cloud market is undergoing rapid transformation, with organizations seeking agility through tailored solutions and modular data center designs,' said Meenakshi Srivastava, lead analyst, ISG Provider Lens Research, and lead author of the report. 'By 2025, 75 percent of enterprise data will be processed outside traditional data centers or cloud environments, indicating a shift in data management practices.' The report also explores other trends related to private/hybrid cloud and data center services in the U.K., including an increased emphasis on sustainability and the integration of agentic AI into hybrid and private cloud environments. For more insights into the private/hybrid cloud and data center services challenges that enterprises in the U.K. face, plus ISG's advice for overcoming them, see the ISG Provider Lens ® Focal Points briefing here. The 2025 ISG Provider Lens ® Private/Hybrid Cloud — Data Center Services report for the U.K. evaluates the capabilities of 69 providers across five quadrants: Managed Services — Large Accounts, Managed Services — Midmarket, Managed Hosting, Colocation Services and AI-Ready Infrastructure Consulting. The report names Fujitsu and Kyndryl as Leaders in three quadrants each. It names Accenture, Capgemini, Claranet, DXC Technology, Ensono, Hexaware, Infosys, Pulsant, Rackspace Technology, T-Systems and TCS as Leaders in two quadrants each. Atos, Computacenter, Deloitte, Digital Realty, Equinix, Global Switch, HCLTech, IBM, LTIMindtree, NTT DATA, Redcentric, Telefonica Tech, Telehouse, Unisys and Wipro are named as Leaders in one quadrant each. In addition, LTIMindtree, Mphasis and NTT DATA 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 2025 among private/hybrid cloud and data center service 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 Hexaware and Unisys. The 2025 ISG Provider Lens ® Private/Hybrid Cloud — Data Center Services report for the U.K. 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 (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world's top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.

Hybrid, Multicloud Strategies Gain Traction in U.K.
Hybrid, Multicloud Strategies Gain Traction in U.K.

Yahoo

time3 days ago

  • Business
  • Yahoo

Hybrid, Multicloud Strategies Gain Traction in U.K.

Growing AI adoption, regulatory pressures accelerate enterprises' shift to hybrid cloud environments, ISG Provider Lens® report says LONDON, July 17, 2025--(BUSINESS WIRE)--Enterprises across the U.K. are rapidly modernizing their cloud infrastructures, motivated by a surge in AI and ML workloads that demand scalable and secure cloud solutions, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm. The 2025 ISG Provider Lens® Private/Hybrid Cloud — Data Center Services report for the U.K. finds an upward trend in the adoption of hybrid and multicloud infrastructure models, with significant growth anticipated within the next three years. Performance, data sovereignty, security and regulatory pressures are the primary drivers of this growth. Hybrid cloud is now the preferred model for many U.K. enterprises, because it lets organizations align workloads with appropriate environments and improve data protection. "U.K. enterprises are actively transitioning toward hybrid and multicloud platforms to support AI and ML workloads and safeguard sensitive data," said Anthony Drake, partner at ISG. "These flexible platforms are crucial for protecting organizations against ransomware and malware threats and for achieving cost efficiency." Enterprises in the U.K. are using hybrid clouds to enhance security with private cloud resources while simultaneously gaining cost savings and flexible scalability from public clouds, ISG says. Increasingly, they are deploying real-time monitoring and ML within private clouds to strengthen data protection, particularly in highly regulated sectors such as healthcare and finance. As organizations embrace cloud environments, they are engaged in large-scale migration of business applications. Most organizations in the U.K. have migrated applications between environments to improve efficiency, capacity, security and innovation, the report says. Companies are optimizing on-premises and private cloud environments by integrating graphics processing units (GPUs) and expanding storage capacities. This approach eases handling of AI and analytical tasks while improving efficiency and resource utilization. Small and midsize enterprises (SMEs) in the U.K. are focused on developing customized cloud solutions to meet industry-specific demands. The uptake of modular data center designs is also on the rise, owing to their low total cost of ownership and accelerated deployment capabilities, ISG says. The U.K. government's designation of data centers as critical infrastructure, coupled with streamlined planning laws, facilitates new data center projects and reinforces a national focus on data protection. The capacity of U.K. data centers is expected to increase twofold by 2028, mainly driven by growing demand for generative AI (GenAI), cloud computing and government-supported infrastructure. "The U.K.'s cloud market is undergoing rapid transformation, with organizations seeking agility through tailored solutions and modular data center designs," said Meenakshi Srivastava, lead analyst, ISG Provider Lens Research, and lead author of the report. "By 2025, 75 percent of enterprise data will be processed outside traditional data centers or cloud environments, indicating a shift in data management practices." The report also explores other trends related to private/hybrid cloud and data center services in the U.K., including an increased emphasis on sustainability and the integration of agentic AI into hybrid and private cloud environments. For more insights into the private/hybrid cloud and data center services challenges that enterprises in the U.K. face, plus ISG's advice for overcoming them, see the ISG Provider Lens® Focal Points briefing here. The 2025 ISG Provider Lens® Private/Hybrid Cloud — Data Center Services report for the U.K. evaluates the capabilities of 69 providers across five quadrants: Managed Services — Large Accounts, Managed Services — Midmarket, Managed Hosting, Colocation Services and AI-Ready Infrastructure Consulting. The report names Fujitsu and Kyndryl as Leaders in three quadrants each. It names Accenture, Capgemini, Claranet, DXC Technology, Ensono, Hexaware, Infosys, Pulsant, Rackspace Technology, T-Systems and TCS as Leaders in two quadrants each. Atos, Computacenter, Deloitte, Digital Realty, Equinix, Global Switch, HCLTech, IBM, LTIMindtree, NTT DATA, Redcentric, Telefonica Tech, Telehouse, Unisys and Wipro are named as Leaders in one quadrant each. In addition, LTIMindtree, Mphasis and NTT DATA 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 2025 among private/hybrid cloud and data center service 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 Hexaware and Unisys. The 2025 ISG Provider Lens® Private/Hybrid Cloud — Data Center Services report for the U.K. 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 (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world's top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments. View source version on Contacts Sarah Ye, ISG+44 7833 Laura Hupprich, ISG+1 203 517

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