Europe embraces cloud-native tools as market matures

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Europe embraces cloud-native tools as market matures

Companies in Europe are developing a deeper understanding of cloud-native technologies and adopting them slightly faster than companies in the US, according to a new research report published today by Information Services Group (ISG). (Nasdaq: III), a leading technology research and advisory firm.

The 2022 ISG Provider Lens™ Cloud Native Services and Solutions report for Europe finds widespread and growing use of containers and Kubernetes orchestration, even as the market moves from a hype and growth boom to a more mature phase. Companies in Europe are now working to scale their cloud-native implementations, which increasingly reside in multi-cloud environments.

“As enterprises pursue cloud-native strategies, many are leveraging the strengths of different public clouds, along with on-premises and edge environments,” said Bernie Hoecker, enterprise cloud transformation partner at ISG. “This can make their architectures even more complex, but it helps them avoid technical debt or lock-ins.”

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Companies are becoming increasingly familiar with the benefits and challenges of cloud-native technologies. Migrating legacy applications to distributed, container-based microarchitectures in the cloud can give enterprises faster cycle times for new software and better scalability to meet fluctuating demand, along with smoother integration into DevOps software pipelines. says ISG. However, a cloud-native approach also requires new skills, new security tools, and the means to track and monitor widely distributed software components.

In Europe, recent industry surveys indicate that around three-quarters of back-end developers used containers in 2021, the report says. However, many European companies still need assistance scaling cloud-native technologies in their IT environments. A growing number of service providers offer container migration factories and “Day 2” consulting and support to ease the transition.

Cloud-native strategies in Europe often grapple with evolving data residency and sovereignty requirements that affect where data can be moved within distributed application architectures, says ISG. Providers are developing specific tools to address this challenge. Sustainability is also a growing problem.

“Many European companies now require cloud-native observability tools to measure the environmental impact of their operations,” said Jan Erik Aase, Partner and Global Lead, ISG Provider Lens Research. “This makes observability an even more complex task.”

The report also explores other global and European cloud-native trends, including stagnating demand for serverless architectures and the growing importance of edge solutions and open source software and standards.

The 2022 ISG Provider Lens™ Cloud Native Services and Solutions for Europe report assesses the capabilities of 65 providers in five quadrants: Managed Container Services, Container Platform Solutions, Hyperscaler Cloud-native Platforms, Cloud-native Observability Solutions, and Cloud-native Security Platforms.

The report names VMware as a leader in three quadrants and Dynatrace and Sysdig as leaders in two quadrants each. Names Accenture, AWS, Capgemini, Cognizant, Computacenter, Datadog, DXC, Google, HCL, HPE, Microsoft Azure, Mirantis, New Relic, OVHcloud, Palo Alto Networks, SUSE Rancher, Red Hat, Splunk and Wipro as leaders in one quadrant each.

A customized version of the report is available in Dynatrace.

The 2022 ISG Provider Lens™ Cloud Native Services and Solutions report for Europe is available for subscribers or one-time purchase on this webpage.

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