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Nordic Enterprises Embrace the Public Cloud to Expand Global Reach

ISG Provider Lens report sees Nordic companies also using the cloud to adopt containers, artificial intelligence and other next-generation technologies

Public cloud adoption in the Nordic countries is surging, as enterprises look for agile, cloud-native technologies that will help them drive growth and expand their global footprints, according to a new report published today by Information Services Group(ISG), a leading global technology research and advisory firm.

The 2020 ISG Provider Lens Public Cloud – Solutions and Services Report for the Nordics finds enterprises in the region looking for public cloud providers to help them modernize their infrastructure and use next-generation cloud technologies such as containers, microservices and artificial intelligence.

Public cloud demand in the region is also driven by an interest in productivity and efficiency gains and the transformation of customer experience, the report says.

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“The Nordic IT market has always been one of the most progressive in Europe,” said Jan Erik Aase, director and global leader, ISG Provider Lens Research. “Large enterprises and even smaller companies across all Nordic industries are increasing their cloud spending.”

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The report finds a surge in demand for public cloud services among the region’s financial services, manufacturing and retail sectors, while the public sector has lagged. The financial services industry, with a need for heavy information processing and information classification, has been particularly quick to adopt public cloud services. Meanwhile, the manufacturing industry has focused on the public cloud as manufacturing processes have become increasingly digital. Integrating manufacturing execution systems with the Internet of Things creates the need for cloud services capable of processing large amounts of data.

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The report also sees a growing need for strategic partnerships between system integrators and cloud hyperscalers. In the Nordics, it is essential for cloud service providers to be certified and increase their competencies in AWS, Azure and GCP. The report also recommends that IT service providers become investment partners with Nordic enterprises in outcome-based engagements.

Many Nordic enterprises, meanwhile, are focused on a multi-cloud strategy and are seeking new ways to manage multi-cloud workloads and ensure that cost and governance checks are in place. Most cloud service providers are offering cloud-agnostic and vendor-neutral platforms and have developed artificial intelligence-driven cloud management tools that are part of a bundled solution.

Nordic executives are focused on innovation and transformation as they adopt public cloud services, the report adds. Companies are consuming cloud services from the three big providers—AWS, Azure and GCP—based on a multi-year strategy defined by the CTO and CIO.

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