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Market researcher PAC: Trend towards hybrid application models

An independent view is intended to support companies in selecting the most suitable providers for their needs for their cloud or Azure migration journey. In order to provide companies with this comprehensive overview of the provider landscape around Azure, the market research and strategy consulting company PAC is presenting a study on this. The regional focus is on Europe and the evaluation of capabilities in individual service areas such as application modernization, AI or digital workplaces. In total, PAC evaluates 28 IT service providers based on more than 50 criteria - from the largest international providers (Capgemini, Accenture, CGI) to the most important European players (Sopra Steria, Orange Business Services, Inetum) to smaller local players (Open in France). 

A clear industry trend

The three hyperscalers Amazon, Google and Microsoft dominate the market. However, very few customers rely on just one public cloud provider, but on a combination of several providers (multi-cloud) or hybrid models. IT service giants, large consulting companies and innovative boutiques form a dynamic and diverse ecosystem to meet the seemingly insatiable demand for innovative cloud services. A major challenge for players in this dynamic market is to develop clear differentiators and set themselves apart from the competition.

Eric Beaudet, Senior Analyst at PAC and study leader: "Our study clearly shows that while private cloud solutions were the norm in the past, public cloud adoption is rapidly gaining traction: According to one of our surveys on current investment priorities, one third of the companies surveyed said they were already using public cloud services. Another third plan to take this step in the next two years. The potential in this area is huge and players in the market need to position themselves now."

European companies will invest significantly in cloud services over the next 12 to 24 months as they need to outsource an increasing proportion of their data and projects there. For IT providers, this fast-growing market means they will have to overcome some industry-wide challenges, first and foremost the battle for the best talent. Especially those with certain key skills, such as security, data or sustainable process optimization (DevOps) - where enterprises and vendors alike are looking for the best and brightest professionals to support their cloud migrations. In this battle, leading vendors are pushing forward with innovative and well-funded programs to attract, retain and train employees, as well as solid university partnerships. They are also investing heavily in expanding their certified talent pools.