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German Companies Turn to Service Providers to Manage Microsoft Product Suite

ISG Provider Lens report also finds growing interest in Microsoft Azure cloud solutions among German enterprises

The growing suite of Microsoft products and growing enterprise adoption of the Microsoft Azure cloud are increasing demand in Germany for Microsoft consulting, integration and implementation partners, according to a new report published by Information Services Group (ISG), a leading global technology research and advisory firm.

The 2020 ISG Provider Lens Microsoft Ecosystem Report for Germany finds German enterprises and midmarket companies embracing service providers for consulting and the design of Microsoft implementations, as the software giant continues to add to its product suite. German end-users are expecting an increasingly mobile and universal workplace, even at small and midsize companies, and service providers can help those companies cater to employee demands, the report says.

“Workers are demanding an employee-centric approach to technology,” said Andrea Spiegelhoff, partner, ISG DACH. “The transition to this model is often quite complex, and smart companies are using service providers that offer change management programs to get all end users on board.”

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Many German companies are also looking to reduce system downtime and disruption to end users, the report says. Common problems like forgotten passwords are increasingly being resolved through self-service portals and chatbots offered through Microsoft-focused service providers. Employees also expect automated capabilities for standard processes such as onboarding and the distribution of new software.

In addition, large enterprises are increasingly demanding automation tools, as well as DevOps services and containerization for setting up and managing cloud platforms, the report says. German companies are interested in result-oriented pricing models.

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Nearly a third of all German companies have set up workloads on Microsoft Azure, primarily using a hybrid cloud approach, the report adds. Azure is the second largest cloud platform in Germany, with its market penetration growing. The competitive gap between Azure and market-leading AWS has narrowed significantly, with many programmers shifting to Azure. There is a growing interest in Germany in using Azure Stack as a platform for operating unconnected cloud services, the report says.

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The report finds ERP provider SAP shifting away from its own hosting solutions, and instead moving to cloud hyperscalers, particularly Azure.

The report also finds many German companies actively migrating to the Microsoft Teams collaboration suite. Communication and collaboration are the key tools for reshaping the way people work in offices.

German companies also are increasingly interested in workplace-as-a-service and software-as-a-service solutions related to the Microsoft ecosystem, the report finds.

The 2020 ISG Provider Lens Microsoft Ecosystem Report for Germany evaluates the capabilities of 59 providers across six quadrants: Managed Services for Azure for the Midmarket, Managed Services for Azure for Large Accounts, Office 365 Integration for the Midmarket, Office 365 Integration for Large Accounts, SAP on Azure, and SharePoint Integration.

The report names Arvato Systems as a leader in five quadrants, and Atos, CANCOM and Devoteam | Alegri as leaders in four. Accenture (Avanade), AppSphere, Axians, Capgemini, Deutsche Telekom (TSI) and DXC Technology are named leaders in three quadrants, and Computacenter a leader in two. Accenture, All for One Group, Bechtle, Cognizant, Data One, Deutsche Telekom (TDG), Fujitsu, GAB ExactlyIT, Glück & Kanja, Infosys, Scheer and Wipro are named leaders in one quadrant.

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