In Germany, too, the COVID-19 pandemic is not only giving wings to the cloud business of Amazon Web Services (AWS), but also the business of service providers specializing in AWS. Above all, the ability to scale systems quickly and flexibly plays into the cards of the large, so-called “hyperscale” providers such as AWS and their service providers.
This is reported by the new “ISG Provider Lens AWS Ecosystem Partners Report Germany 2020” from the Information Services Group (ISG). ISG is a market research and consulting company in the technology segment.
“ The members of the AWS partner network support their customers in developing AWS-based businesses and solutions,” says Frank Heuer, Senior Manager and Principal Analyst at ISG. Due to the growing importance of AWS as an IT provider, the AWS partner ecosystem is also gaining relevance. “ The rapidly growing success of AWS is also driving the business of AWS partners and service providers,” continued Heuer. “Customers not only ask for Amazon’s cloud services because they can be implemented quickly and flexibly, for example when it comes to IT equipment for the home office. The re is also the cost pressure caused by the crisis, which prompts many companies to convert their traditional IT landscapes to needs-based and cost-flexible architectures. ”
This trend towards cloud-based solutions has now also captured the still young market for SAP in the AWS cloud, according to the ISG study. SAP itself is now increasingly relying on the provision of its services from the AWS cloud and is even temporarily accepting significant declines in profits for growth in this market. “In Germany in particular, many companies hesitate to go into the cloud with SAP,” said ISG analyst Heuer. “After all, ERP systems like SAP are almost always about core processes in the company and business-critical data, with which companies often unconsciously take risks.”
Nevertheless, the market for SAP in the AWS cloud is now gaining momentum. Not only SAP itself is now aggressively committed to this model. The rapid expansion of the SAP product portfolio through AWS also means that companies can map ever larger parts of their workload in the cloud. “In addition, the step into the AWS cloud is usually not an either / or decision, but rather aims at hybrid solutions,” says Heuer. “Usually, companies first start by moving to the cloud with less critical business processes such as marketing. Core processes and the associated business-critical data are usually the last to go. ”
Because of its dynamic growth, the “SAP workloads” market for AWS continues to record numerous new providers, so that competitive pressure is increasing, according to the ISG provider comparison. At the same time, the analysts find that providers who provide the broadest possible range of SAP / AWS services are ahead of the game. As a rule, customers would prefer to get these services from a single source. The y also expected the respective provider to have sufficient on-site resources and specialists and to have all the important AWS certifications. Overall, the maturity of the market has increased significantly in recent months due to the strong increase in demand, according to ISG.
In the “SAP Workloads” sub-market, ISG examined a total of 22 providers, eight of which were able to position themselves as “leaders” and one as a “rising star”.
Eight providers were able to position themselves in the “Leader” quadrant of the “SAP Workloads” market segment.
The “ISG Provider Lens AWS Ecosystem Partners Report Germany 2020” evaluates the services of 54 providers in six market segments (quadrants): “SAP Workloads”, “Data Analytics & Machine Learning”, “Internet of Things”, “Migration & Container Solutions” , “Managed Service Partners” and “Consulting Service Providers”.
Data Analytics & Machine Learning
The rapidly growing volume of data to be analyzed in companies means that many of them use the corresponding capacities of the public cloud. The ISG study emphasizes that companies depend not only on support from AWS, but also from its partner network. Above all, the existing infrastructure for data storage must be integrated with the cloud solutions. This complex task of integration and service management is usually in the hands of service providers. According to the study, they support everything from readiness checks and strategy advice to technical implementation and integration right through to operation.
Internet of Things
Once again exacerbated by the COVID-19 crisis and the associated virtualization of working relationships and the outsourcing of devices, the “Internet of Things” (IoT) has become a central component of the digital transformation of companies. According to the ISG study, this means that there is increasing demand for the highly scalable IoT solutions from AWS. In addition, the partner network for IoT solutions from AWS is an important success factor. The German market not only requires a broad spectrum of specialist knowledge on the part of providers, but also implementation skills paired with industry know-how.
Migration & Container Solutions
In addition to newly introduced cloud applications, companies are primarily faced with the challenge of migrating existing applications to the AWS cloud. Compared to some other economic regions and countries, according to the ISG study, Germany is still at the beginning. But here too, COVID-19 led to an acceleration. According to ISG, container technologies such as Docker and Kubernetes help to keep the costs associated with the migration low and to achieve results quickly. The migration / container
Consulting Service Providers
When looking at the time after the COVID-19 crisis, change management and digital corporate strategies are still in demand for AWS services, according to the ISG study. Consulting is a key topic, especially for getting started using AWS-based solutions. This market in Germany is correspondingly highly competitive – especially since the advice potentially opens up further business. The ISG comparison of providers observes that consulting service providers benefit from their customers’ successful entry into the AWS world by also taking on follow-up business such as managed services. Service providers who not only offer advice, but also support in AWS operation, have good prerequisites for success in the market.
Managed Service Partners
According to the ISG study, the German market for managed services for AWS solutions has recently grown significantly. The requirements and expectations of the user companies are primarily (hybrid) multi-cloud landscapes, cost savings, security and data protection, experience in operation and the end-to-end competencies of the service providers.
The ISG comparison of providers names Accenture and Capgemini “leaders” in all six market segments as well as Atos and DXC Technology in five quadrants each. Wipro is “Leader” in four market segments and Claranet, Cognizant, IBM, Rackspace Technology, tecRacer and T-Systems in three each. Materna is rated as a “leader” in two quadrants. AllCloud, Arvato Systems, Deloitte, direkt gruppe, Lemongrass Consulting, NTT DATA, OPITZ CONSULTING, PlusServer, Reply, Siemens, Software AG, TCS and * um (an Orange Business Services Company) are each named as “leaders” in one market segment.
In addition, Cognizant is referred to as a “rising star” in two quadrants – according to the ISG definition, companies with “promising portfolios” and “high future potential”. Mphasis and PwC are each “Rising Star” in a quadrant.