Hybrid Enterprise Cloud Services: Gen AI and Industry-specific Cloud Solutions Drive Next Wave of Growth

As businesses delve into the possibilities that generative AI presents, cloud migration, data modernization, security, and privacy take center stage as crucial priorities. Service providers are directing investments toward integrating generative AI with traditional automation methodologies to enhance productivity within IT operations. This integration aims to reinforce hybrid cloud systems, ensuring they remain robust, secure, and sustainable.

Both demand-side and supply-side trends are covered in Avasant’s Hybrid Enterprise Cloud Services 2023-2024 Market Insights™ and Hybrid Enterprise Cloud Services 2023-2024 RadarView™ respectively. These reports present a comprehensive study of hybrid enterprise cloud service providers and closely examine the market leaders, innovators, disruptors, and challengers.

We evaluated 40 service providers across three dimensions: practice maturity, partner ecosystem, and investments and innovation. Of the 40 providers, we recognized 26 that brought the most value to the market during the past 12 months.

The reports recognize service providers across four categories:

• • Leaders: Accenture, Capgemini, Cognizant, HCLTech, IBM, Infosys, LTIMindtree, TCS, and Wipro
  • Innovators: Atos Group, DXC, Kyndryl, Orange Business, Tech Mahindra, Unisys, and Zensar
  • Disruptors: Birlasoft, Fujitsu, Movate, Mphasis, and Persistent Systems
  • Challengers: Ensono, Microland, NTT DATA, Rackspace Technology, and UST
    

Figure 1 below from the full report illustrates these categories: 

“Companies are reshaping the conversation about the cloud, aiming to shift focus from discussions on technology to business value,” said Anupam Govil, Avasant managing partner. “Adopting industry clouds can facilitate this by focusing on data-driven architecture and prioritizing specialized cloud solutions that meet industry requirements.”

The reports provide several findings, including the following: 

• Enterprises prioritize securing critical workloads in the evolving hybrid cloud space, deploying advanced technologies for adaptive security. Simultaneously, sustainability is emphasized through hybrid cloud adoption, integrating sustainable FinOps complemented by AI-driven insights for enhanced automation and business performance.
• Companies integrate generative AI in cloud development, urging investment in hybrid solutions. This includes leveraging vendor AI services, accelerating research, and fortifying the private cloud for sensitive data and workloads, reflecting the industry’s evolving needs.
• Industry-specific cloud solutions are helping businesses turn cloud platforms into business platforms, creating value for specific clients. Service providers have matured their vertical-specific cloud offerings to expedite time to market, ensure compliance, and encourage innovation.
• The telecom, media and entertainment industry witnessed an 8% surge in revenue. To improve their performance, telecom operators are adopting edge computing for low-latency cloud services. They are also utilizing hybrid cloud architectures that combine centralized cloud resources with distributed edge computing, offering them the benefits of modernization and flexibility.
  

“Enterprises have realized the importance of adopting a cloud-smart strategy over a cloud-first approach,” said Gaurav Dewan, research director with Avasant. “Prioritizing the convergence of data, cloud, and AI to drive business outcomes underscores the significance of addressing security and sustainability across varied cloud environments.”

The Hybrid Enterprise Cloud Services 2023–2024 RadarView™ also features detailed RadarView profiles of 26 service providers, along with their solutions, offerings, and experience in assisting enterprises with hybrid cloud services.

This Research Byte is a brief overview of the Hybrid Enterprise Cloud Services 2023–2024 Market Insights™ and Hybrid Enterprise Cloud Services 2023–2024 RadarView™. (click for pricing).