ISG
12.7.2024 10:01:30 CEST | Business Wire | Press release
Bucking the trend toward a “cloud first” approach, enterprises in the Nordics have adopted a hybrid cloud strategy that prioritizes practicality over immediacy and sustainability over AI, 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 Nordics finds that Nordic companies are setting the pace of their cloud migrations based on financial and operational viability rather than following a predetermined cloud-first agenda that is more prevalent in EMEA. Since the inception of the internet, the Nordic nations have prioritized investments in digital infrastructure and have emerged as a hub for data center outsourcing, the ISG report says.
“Nordic countries are leaders in terms of sustainability and the circular economy,” said Dr. Matthias Paletta, ISG director, technology modernization, for EMEA. “They offer environmental benefits to enterprises owing to their accessible and secure data center locations, excellent connectivity, low-latency networks and compliance with EU data sovereignty laws.”
Sustainability serves as a cornerstone of data center operations in the Nordics, the ISG report says. According to the report, the region’s access to renewable energy, including hydro and wind power, has positioned it as a leader in green data center solutions.
Data center providers prioritize energy efficiency, carbon neutrality and eco-friendly practices, the report says. Both local and international cloud and colocation providers are adopting sophisticated cooling techniques and repurposing waste heat from data centers for district heating, agricultural and industrial endeavors, ISG says. According to the report, Nordic countries are striving toward net zero emissions with a goal of exporting clean energy to the EU.
Although the Nordics lead in sustainability, they lag somewhat when it comes to AI implementation, the ISG report says. Like enterprises throughout Europe, companies in the Nordics are embracing generative AI (GenAI) to address business challenges, improve current services and deliver personalized user experiences, the report says. Yet, despite making progress in AI adoption, Nordic companies still face challenges in data management and governance maturity, which hamper their ability to realize AI’s full potential but leave significant opportunity for growth, ISG says.
“Data center outsourcing providers in the Nordics offer solutions that seamlessly integrate with public cloud platforms such as AWS, Azure and Google Cloud,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “These solutions can provide enterprises with flexibility, scalability and redundancy across multiple environments.”
The report also examines how the proliferation of IoT devices and the demand for low-latency applications have driven the expansion of edge computing infrastructure in the Nordics.
For more insights into the private/hybrid cloud and data center services challenges enterprises in the Nordics face, including volatile geopolitics and a continuing talent shortage, and ISG’s advice for addressing them, see the ISG Provider Lens™ Focal Points briefing here.
The 2024 ISG Provider Lens™ Private/Hybrid Cloud – Data Center Services report for the Nordics evaluates the capabilities of 53 providers across four quadrants: Managed Services - Large Accounts, Managed Services - Midmarket, Managed Hosting and Colocation Services.
The report names Orange Business and Tietoevry and Leaders in three quadrants each, while Atea, CGI, Fujitsu and Kyndryl are named as Leaders in two quadrants each. Accenture, atNorth, Bulk Infrastructure, Capgemini, Digital Realty, Equinix, Green Mountain, HCLTech, LTIMindtree, STACK Infrastructure, TCS, Tech Mahindra, T-Systems and Wipro are named as Leaders in one quadrant each.
In addition, Advania, Infosys and LTIMindtree 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, Green Mountain is named the global ISG CX Star Performer for 2024 among Private/Hybrid Cloud – Data Center Services providers. Green Mountain 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.
The 2024 ISG Provider Lens™ Private/Hybrid Cloud – Data Center Services report for the Nordics 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 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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