Relatively late adoption of Azure Cloud points to rapid, user-driven expansion in Switzerland’s IT market, ISG Provider Lens report says
Swiss enterprises are cautiously pursuing cloud-first and cloud-native strategies, including adopting Microsoft’s Azure public cloud, according to a new research report published by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
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“Enterprises in Switzerland have picked up the pace of cloud migration, but they are still doing so cautiously”
The 2023 ISG Provider Lens Microsoft Cloud Ecosystem report for Switzerland finds the country is lagging in its adoption of cloud technologies compared with the rest of Europe and the United States. Azure, for instance, has only been available in Switzerland for a little more than two years. The report notes that large enterprises in Switzerland tend to adopt Azure by partnering with large service providers, while small and midsize companies are more likely to choose local partners.
“Azure customers in Switzerland often have a strong regional focus,” said Uwe Ladwig, managing director, ISG Switzerland. “They place a lot of importance on in-depth knowledge of the Swiss market.”
The current crises in Europe – war, inflation and the effects of the pandemic – have not impacted the Swiss economy as severely as in other European countries. As a result, the Swiss IT market is likely to expand more rapidly than elsewhere in Europe, the ISG report says.
With accelerated adoption of remote work during the pandemic, enterprises are seeking solutions that help them address challenges, such as implementing SaaS-based workplace environments, unified communication, file storage and performance. A key component of most Swiss projects is converting telephony to an advanced solution centered on Microsoft Teams, ISG says.
In the past, Swiss enterprises have been somewhat conservative about cloud migration, but the pandemic has changed operational strategies and IT budgets, increasing the overall adoption of cloud technologies, the ISG report says. Most enterprises are migrating to Azure using service providers that have local operations and meet their security and compliance requirements.
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“Enterprises in Switzerland have picked up the pace of cloud migration, but they are still doing so cautiously,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Swiss customers, especially those in banking, financial services and insurance, are prepared to make large investments in security and data protection.”
The report also examines how Swiss enterprises are leveraging Power Platform to enable citizen software development.
The 2023 ISG Provider Lens™ Microsoft Cloud Ecosystem report for Switzerland evaluates the capabilities of 41 providers across five quadrants: Managed Services for Azure, Microsoft 365 Services, SAP on Azure Services, Dynamics 365 Services and Power Platform Services.
The report names ELCA, SoftwareONE and Swisscom as Leaders in four quadrants each, while Ambit Gruppe, Aveniq and isolutions are named Leaders in three quadrants each. Dataone, EveryWare and T-Systems are named leaders in two quadrants each, while Allgeier, Baggenstos, Bechtle, Capgemini, DIGITALL, Kyndryl, Sopra Steria and UMB are named leaders in one quadrant each.
In addition, Eviden/Atos, IOZ AG and Kyndryl are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.
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