Cloud Migrations Boost Australian Microsoft Ecosystem

Australian enterprises accelerate and adapt cloud strategies amid AI hopes, ransomware worries and changing work modes, ISG Provider Lens report says

SYDNEY–(BUSINESS WIRE)–$III #GenerativeAI–The acceleration of digital transformations and cloud implementations by Australian companies and government agencies is expanding the country’s Microsoft cloud ecosystem, 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 Microsoft Cloud Ecosystem report for Australia finds that organizations’ cloud strategies are evolving quickly, shaped by concerns about cloud costs, geopolitical instability and a growing risk of cyberattacks. In turn, the market for Microsoft cloud-related services is also evolving. Adoption of Microsoft Power Platform and Dynamics 365 is especially strong, with enterprises increasingly focused on building applications correctly as they migrate to the cloud.

“Australian companies are cautious about technology, seeking a strong return on investment,” said Ben Rossiter, ISG technology modernization lead in Australia. “They are partnering with providers for the best possible implementations.”

Many Australian organizations are still catching up with dramatic changes in employee and customer expectations that accelerated with the COVID-19 pandemic, ISG says. Service providers are helping them deploy the right devices, network security and collaboration tools to keep remote workers happy, safe and productive.

Microsoft’s AI strategy for Azure continues to evolve amid growing enterprise interest in using AI to augment human productivity, the report says. Companies are under pressure to quickly introduce new products and services and see AI as a tool to boost employees’ innovation efforts. They are expected to increase their adoption of AI, and especially conversational AI, in Azure implementations over the next few years.

As generative AI (GenAI) emerges as a key technology for many enterprise functions, companies are integrating AI with their workflows, business applications and collaborative platforms, ISG says. GenAI services for Microsoft clouds are helping them to prepare for this new wave of capabilities. Organizations that understand how to use GenAI are expected to outperform those that come late to the technology.

In the wake of the pandemic and a recent surge in ransomware attacks, Australian organizations have grown more comfortable with putting applications on the cloud, ISG says. Many, though not all, have already migrated applications with low to medium complexity and are now ready to trust complex core systems such as SAP to the cloud. SAP’s announcement of the impending end of life for its on-premises products has accelerated this trend.

“Some Australian organizations are still reluctant to put business-critical applications on the cloud,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Service providers can educate them on how to make the transition easily and minimize risks.”

The report also examines other Microsoft cloud trends affecting Australian companies, including the rising importance of data governance and providers’ shift from IT-centric to customer-centric approaches, focusing on end-user experience to drive business outcomes.

For more insights into the Microsoft cloud challenges facing Australian enterprises, including the growth of unstructured data and a shortage of resources for digital transformation amid rising costs, along with advice for addressing them, see the ISG Provider Lens Focal Points briefing here.

The 2024 ISG Provider Lens Microsoft Cloud Ecosystem report for Australia evaluates the capabilities of 40 providers across five quadrants: Managed Services for Azure, Microsoft 365 Services, SAP on Azure Services, Power Platform Services and Generative AI Services for the Microsoft Clouds.

The report names Accenture & Avanade, DXC Technology, Fujitsu, TCS and Wipro as Leaders in all five quadrants. It names Kyndryl as a Leader in four quadrants and Capgemini, HCLTech and Telstra as Leaders in three quadrants each. Logicalis, Unisys and Velrada are named as Leaders in two quadrants each. AC3, Barhead Solutions, Hexaware, Macquarie Cloud Services, PwC and Tech Mahindra are named as Leaders in one quadrant each.

In addition, Infosys is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in three quadrants. Engage Squared, FiveP Australia, HCLTech, Insight and Kyndryl are named as Rising Stars in one quadrant each.

Customized versions of the report are available from Barhead Solutions, Logicalis, Unisys and Velrada.

In the area of customer experience, Bechtle is named the global ISG CX Star Performer for 2024 among Microsoft cloud ecosystem partners. The provider earned the highest customer satisfaction scores in ISG’s Voice of the Customer survey, which is part of the ISG Star of Excellence program, the premier quality recognition for the technology and business services industry.

The 2024 ISG Provider Lens Microsoft Cloud Ecosystem report for Australia 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.

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 more than 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.

Contacts

Will Thoretz, ISG

+1 203 517 3119

will.thoretz@isg-one.com

Julianna Sheridan, Matter Communications for ISG

+1 978-518-4520

isg@matternow.com

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