German Firms Set to Soar With Microsoft Copilot at the Helm

German enterprises could experience a surge in innovation as Microsoft pioneers the integration of AI and cloud technologies within its ecosystem, 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 Germany finds that 2024 could prove to be a turning point for Microsoft, its customers and partners. GenAI and various Copilot services have now become central to Microsoft's market development strategy, the ISG report says.

“Microsoft’s strategic direction will drive growth and productivity,” said Dr. Matthias Paletta, director, technology modernization, for ISG in Germany. “Providers stand to benefit through dedicated GenAI services as well as from security and integration services related to data management.”

The market for GenAI and GenAI services for Microsoft clouds in Germany is experiencing rapid growth and heightened interest in both demand and supply, the ISG report says. According to the report, service providers are responding to these changing market requirements by using cloud engineering and automation to optimize costs and provide standardized solutions that appear tailor-made. This trend involves advanced integration of AI technologies, such as Microsoft 365 Copilot, Sales Copilot and Microsoft Security Copilot, more comprehensive automation at all levels and a heightened emphasis on data competence, solution competence and security, ISG says.

In an age of increasing cyber security risks, GenAI is emerging as a key component for zero-trust security architectures, introducing a novel form of prevention by swiftly analyzing vast data volumes in real time, identifying anomalies and potential threats at an early stage, the ISG report says.

According to the report, GenAI supports adaptive authentication mechanisms, factoring in contextual elements such as location and user behavior, and enables the customization of security policies precisely tailored to individual needs. In addition, it efficiently automates and orchestrates security processes, improves network security through continuous monitoring and strengthens a strong security culture through focused employee training, ISG says.

“Despite all the attention it has received, GenAI is still relatively new,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Enterprises should look for providers that can make a compelling case for how GenAI in the Microsoft Clouds is able to drive innovation in the areas of employee, consumer and user experience and ultimately lead to real improvements in business outcomes.”

The report also examines how services that connect Microsoft Teams with SAP are enabling easy access to SAP functionalities through low-code solutions.

For more insights into the Microsoft cloud ecosystem challenges facing enterprises in Germany, such as controlling cloud expenses and adjusting to a changing security landscape, along with 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 Germany evaluates the capabilities of 64 providers across eight quadrants: Managed Services for Azure – Large Enterprises, Managed Services for Azure – Midmarket, Microsoft 365 Services – Large Enterprises, Microsoft 365 Services – Midmarket, SAP on Azure Services, Power Platform Services, Generative AI Services for the Microsoft Clouds and Dynamics 365 Services.

The report names Arvato Systems and Eviden (an Atos Business) as Leaders in six quadrants each, while Deutsche Telekom is named as a Leader in five quadrants. All for One Group, Capgemini, glueckkanja and T-Systems are named as Leaders in four quadrants each, while Accenture & Avanade, Bechtle, Devoteam M Cloud, DXC Technology, PwC, Rackspace Technology, SoftwareONE and Wipro are named as Leaders in three quadrants each. Allgeier, CANCOM, Communardo, Computacenter, DIGITALL, NTT DATA, ORBIT IT-Solutions, q.beyond, Scheer and Skaylink are named as Leaders in two quadrants each, while adesso, AppSphere, Data One, Infosys, KUMAVISION, Kyndryl, Sopra Steria, Sycor and TCS are named as Leaders in one quadrant each.

In addition, q.beyond is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants, while Kyndryl, NetPlans and Skaylink are named as Rising Stars 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.

Customized versions of the report are available from Communardo, glueckkanja-gab, q.beyond, Skaylink GmbH and Syntax Systems.

The 2024 ISG Provider Lens™ Microsoft Cloud Ecosystem report for Germany is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI and automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

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