Ukraine Conflict Impacting Nordics Cloud Adoption

The conflict in Ukraine has intensified supply chain disruptions, affecting IT investments across the Nordics, 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™ Multi Public Cloud Services report for the Nordics finds companies in the region are grappling with rising IT costs and a shortage of skilled labor, which is directly impacting their cloud adoption strategies. As a result, many organizations are focusing their investments on projects the deliver immediate business value, while deferring less critical initiatives.

This trend, ISG says, underscores the need for agile and efficient cloud solutions that can adapt to evolving market conditions. The demand for hybrid and multicloud solutions is rising, driven by the need for robust digital infrastructure and low-cost energy and reduced concerns about security and vendor lock-in.

“There’s a supportive environment for cloud adoption in the Nordics, as countries in the region align around the common standards of Gaia-X, intended to promote the development of a European cloud ecosystem,” said Dr. Matthias Paletta, ISG director, Technology Modernization, in Europe. “Still, Nordic companies increasingly are working with leading global hyperscalers such as AWS, Microsoft Azure and Google Cloud to strengthen their digital capabilities, especially amid rising interest in AI, and they are turning to service providers for support.”

Nordic cloud service providers are leveraging microservices, a type of application architecture that divides functions into very small service components that can be replicated automatically, enabling workloads to be scalable on-demand. The most effective providers in this space offer app modernization, including with microservices, as part of their service portfolios, the report notes.

“In the Nordics, enterprises adopting new technologies prefer multicloud deployments that are provider-agnostic,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “The more successful service providers in this region are the ones that can deliver real-time monitoring, reduced maintenance costs, and overall improvement to operational expenditures.”

Sustainability has also become a major focus for Nordic enterprises, as they prepare for the EU’s Corporate Sustainability Reporting Directive (CSRD) which will take effect in 2025 and compel businesses to track their sustainability metrics, improve their data protection capabilities and more effectively manage risk.

For more insights into how global and regional trends are remaking the cloud services market in the Nordic countries, see the ISG Provider Lens™ Focal Points briefing here.

The 2024 ISG Provider Lens™ Multi Public Cloud Services report for the Nordics evaluates the capabilities of 50 providers across seven quadrants: Consulting and Transformation Services – Large Accounts, Consulting and Transformation Services – Midmarket, Managed Services - Large Accounts, Managed Services – Midmarket, FinOps Services and Cloud Optimization, Hyperscale Infrastructure and Platform Services, and SAP HANA Infrastructure Services.

The report names Tietoevry Tech Services as a Leader in four quadrants. Accenture, Capgemini, HCLTech, Finland-based Nordcloud (now part of IBM) and Wipro are named Leaders in three quadrants each. AWS, Crayon, Google, Infosys, Kyndryl, LTIMindtree, Microsoft, Orange Business, TCS and Tech Mahindra are named Leaders in two quadrants each. CGI, Fujitsu, IBM, IT Relation (now part of itm8), Sentia and Solilta are named Leaders in one quadrant each.

In addition, Advania, Eficode, Orange Business 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, Persistent Systems is named the global ISG CX Star Performer for 2024 among multi public cloud service providers. Persistent Systems 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.

A customized version of the report is available from Tietoevry Tech Services.

The 2024 ISG Provider Lens™ Multi Public Cloud Services report for the Nordics 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, Mexico, 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, 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 more than 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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