Demand for public cloud computing and associated services in the U.S. has remained strong over the last four quarters as more organizations digitize business operations and require high-performance computing for business-critical workloads, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
The 2023 ISG Provider Lens™ Multi Public Cloud Services report for the U.S. finds cloud demand is driven mostly by the requirements of application modernization and AI and ML tools running increasingly complex algorithms and processes. Enterprises are using these technologies to reengineer legacy IT infrastructure, and are turning to service providers for expertise in digital transformation and optimal use of public cloud resources.
“Companies need efficient, scalable computing resources without significant upfront investment,” said Bernie Hoecker, partner, Enterprise Cloud Transformation leader, ISG. “Service providers are helping them realize those benefits through public clouds.”
Most U.S. enterprises that have adopted public clouds work with more than one hyperscaler, which allows them to take advantage of the strengths of each and avoid vendor lock-in, ISG says. This makes cloud implementation and use far more complex, so a growing number of companies are engaging with service providers for their multi-cloud expertise. The overall cloud services market in the U.S. has grown by approximately 50 percent over the past year, a rapid pace despite being only half the global growth rate.