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Moving to the Cloud? Management Platforms Are Critical

Global enterprises adopting private/hybrid clouds demand platforms to control the use and cost of cloud resources, ISG Provider Lens™ report says

The accelerating global growth of private/hybrid cloud migration is leading more enterprises to adopt cloud management platforms (CMPs) to track and control their use of cloud resources, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2022 ISG Provider Lens™ Next-Gen Private/Hybrid Cloud — Data Center Services and Solutions global report finds a growing number of enterprises are electing to migrate their IT infrastructure to private and hybrid clouds due to rising cost pressures. The technical debt imposed by aging systems, including the need for staff skilled in legacy technologies, increasingly is a cost that companies are not willing to bear.

“Enterprises around the world are moving to the cloud to lower their costs, but cloud computing has its own costs that need to be controlled,” said Bernie Hoecker, ISG partner, Enterprise Cloud. “A good CMP is important to a successful cloud transformation.”

Effective CMPs let administrators view all aspects of cloud use and cost on one screen and include cost-control features across both multi-cloud and on-premises environments, the report says. Large, multinational firms, in particular, are demanding customizable CMPs that can be integrated with large application monitoring and management platforms via APIs. Almost all of these platforms now include a strong cloud cost optimization module with metering, billing and accounting systems that track departmental responsibility, including chargeback and showback.

“CMPs from major vendors now include all the main features companies want, which can make it hard to distinguish among them,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Advisory firms are helping clients choose the best solution.”

Enterprises in industries including IT, retail, banking, telecommunications, media and entertainment have been adopting CMPs, the report says. North America, an early adopter of many advanced technologies, is the biggest market for the platforms. As with many emerging technologies, a shortage of talent and expertise is a major challenge for CMPs.

The report also examines the rising popularity of hyperconverged infrastructure (HCI) systems, which offer cloud-like economics for existing data centers.

The 2022 ISG Provider Lens™ Next-Gen Private/Hybrid Cloud — Data Center Services and Solutions global report evaluates the capabilities of 28 providers across two quadrants: Hyperconverged Systems and Hybrid Cloud Management Platforms.

The report names HPE and VMware as Leaders in both quadrants. BMC, Cisco, Flexera, Morpheus Data, Nutanix and ServiceNow are named as Leaders in one quadrant each.

A customized version of the report is available from Morpheus Data.

The 2022 ISG Provider Lens™ Next-Gen Private/Hybrid Cloud — Data Center Services and Solutions global report 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, 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.

A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 800 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 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 1,300 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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