Cloud Computing

Azure Gains an Edge in Mexico’s Expanding Cloud System

Microsoft is experiencing a period of growth and innovation in the burgeoning Mexican cloud market, ISG Provider Lens™ report says

Buoyed by the steady migration of systems to online and remote access environments, Microsoft’s Azure is rapidly extending its reach in the Mexico cloud market, 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 Mexico finds the Azure platform is recording growth superior to that of other cloud computing services in the country. The main reasons cited are the constant development of new resources and tools for the platform as well as Microsoft’s increased competitiveness in a hotly contested market, the ISG report says.

“The Azure managed services market in Mexico is witnessing rapid growth,” said Bill Huber, partner, Digital Platforms and Solutions, for ISG. “An increasing number of cloud service providers are investing in resources and training and seeking the Azure Expert MSP seal as proof of their ability to comply with the highest standards of managed services.”

Sparked by a stepped-up need to reduce costs while responding to a growing customer demand originally brought on by the pandemic, Mexican companies are looking for solutions that increase productivity and improve interoperability, the ISG report says.

Microsoft 365, a suite of cloud productivity applications, helps companies reduce operational and infrastructural costs and increase efficiency and collaboration among teams, while offering security and compliance resources, the ISG report says. It includes Microsoft Teams, a collaboration tool that enables real-time work while providing artificial intelligence and data analysis to aid companies in making more informed decisions, the report says.

With the growth of the software-as-a-service market in Mexico, SAP on Azure, a solution that allows companies to execute SAP applications in the Microsoft cloud, has become an attractive option for reducing costs while increasing efficiency and collaboration, the ISG report says. High-performance providers offer migration services for the SAP S/4HANA platform, ensuring compatibility and visibility in the new architecture and providing strategic recommendations to optimize performance in the cloud, the report says.

The Mexican market is increasingly adopting the RISE with SAP proposal, which allows companies to acquire cloud infrastructure, applications, integration services and support for SAP implementations under a single contract. RISE is spurring a growing number of new implementations and migrations to the Azure cloud, ISG says.

“Enterprises in Mexico are turning to cloud computing services to aid their digital transformation and make it easier to adopt innovative technologies,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “The flexibility and scalability of cloud services have allowed these companies to innovate and scale more efficiently.”

The report also examines how the Microsoft partner ecosystem in Mexico has proactively responded to the introduction of generative AI.

For more insights into the Microsoft cloud ecosystem challenges facing enterprises in Mexico, including dealing with skills shortages and responding to immediate technology demands, and ISG’s advice for addressing them, see the ISG Provider Lens™ Focal Points briefing here.

The 2024 ISG Provider Lens™ Microsoft Cloud Ecosystem report for Mexico evaluates the capabilities of 28 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 and DXC Technology as Leaders in all five quadrants, while Softtek and SoftwareONE are named as Leaders in three quadrants each. Ingram Micro, Logicalis and Telefónica Tech are named as Leaders in two quadrants each, while AlfaPeople, bSide, IBM and NEORIS are named as Leaders in one quadrant each.

In addition, Readymind, SoftwareONE and TCS are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

In the area of customer experience, Bechtle is named the global ISG CX Star Performer for 2024 among Microsoft cloud ecosystem providers. Bechtle earned the highest customer satisfaction scores in ISG’s Voice of the Customer survey, 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 Mexico is available to subscribers or for one-time purchase on this webpage.

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