Cloud Security

Companies in France See Future in Hybrid Clouds

A hybrid cloud infrastructure can accelerate IT modernization while ensuring data sovereignty and compliance, ISG Provider Lens™ report says

The hybrid cloud market in France is growing and will continue to expand, buoyed by its ability to provide data security, data sovereignty and flexibility, 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™ Private/Hybrid Cloud – Data Center Services report for France finds there has been a significant increase in the number of companies investing in building data center facilities in France. Part of this market expansion is being driven by the demand for cloud services, either through hyperscalers who have leased data centers or through managed hosting providers who are using colocation to compete with those hyperscalers.

“The COVID-19 pandemic, the conflict in Ukraine, and an abrupt rise in energy costs have created an atmosphere of uncertainty,” said Lyonel Roüast, president of ISG SEMEA, based in Paris. “Uncertainty drives outsourcing because enterprises can transfer some risks to service providers.”

In France and elsewhere, many companies were eager to move workloads to the cloud but soon realized these workloads could be more costly to operate than initially expected, the ISG report says. For example, many enterprises that tried public clouds found them more expensive for legacy workloads and have opted to move to private clouds that use software-defined data center (SDDC) technology, ISG says.

Following this period of experimentation, enterprises have developed new expectations for cloud-based architectures, the ISG report says. They seek shorter innovation cycles, reduced need for capital investments, higher availability, business resilience, and pay-per-use. The cloud pay-per-use model frees capital and improves enterprise cash flows. The same model is used in managed hosting and colocation, ISG says.

According to the ISG report, many enterprises have established a goal of replacing commercial software with open-source solutions to reduce dependence on external technology vendors. The longstanding idea of the “sovereign cloud” is a natural continuation of this aim, and ongoing macroeconomic uncertainties in Europe reinforce its importance, the ISG report says.

“A hybrid cloud is essential for companies operating internationally,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Enterprises need a well-balanced distribution of workloads that protects data in France and guarantees secure and compliant data access in other countries.”

The report also examines the critical role of sustainability in defining hybrid cloud architecture and selecting the best service provider.

The 2023 ISG Provider Lens™ Private/Hybrid Cloud – Data Center Services report for France evaluates the capabilities of 48 providers across four quadrants: Managed Services for Large Accounts, Managed Services for Midmarket, Managed Hosting and Colocation Services.

The report names Orange Business as a Leader in all four quadrants, while Atos and Sopra Steria are named as Leaders in two quadrants each. Accenture, Capgemini, CHEOPS, Claranet, Cloud Temple, Cogent, DATA4, Digital Realty (Interxion), DXC Technology, Ecritel, Equinix, Kyndryl, LTIMindtree, OVHcloud, ScaleSquad, Scaleway, SCC and Wipro are named as Leaders in one quadrant each.

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

Customized versions of the report are available from DXC Technology.

The 2023 ISG Provider Lens™ Private/Hybrid Cloud – Data Center Services report for France is available to subscribers or for one-time purchase on this webpage.

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