Pandemic Accelerates Australian Digital Transformations, Leading More Firms to Seek Out AWS Provider Partners

• ISG Provider Lens report finds enterprises migrating to cloud platforms even faster as disruptions intensify their need for agility, competitiveness and lower costs

The effects of the COVID-19 pandemic have led more Australian enterprises to speed up and expand their digital transformations, generating growing demand for cloud-native IT solutions on hyperscaler platforms, including Amazon Web Services (AWS), according to a new research report published by Information Services Group, a leading global technology research and advisory firm.

“Innovative service providers are responding to Australia’s enterprise public cloud trend by extending and promoting their services and capabilities, even as they adapt their own businesses to new requirements such as remote work”

The 2021 ISG Provider Lens AWS Ecosystem Partners report for Australia finds organizations are seeking cloud solutions that reduce costs, improve business agility, enhance security and deliver measurable business results. This growing demand has increased companies’ engagement with service providers that work with AWS.

“Innovative service providers are responding to Australia’s enterprise public cloud trend by extending and promoting their services and capabilities, even as they adapt their own businesses to new requirements such as remote work,” said Scott Bertsch, partner and regional leader, ISG Asia Pacific. “AWS is playing its part by investing in new tools and services and spending heavily on partnerships with providers.”

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Managed service providers (MSPs) have taken on more of what were traditionally considered system integrator roles as more companies move to the cloud and adjust to pandemic-related disruptions, the report says. Many MSPs are investing in additional skills, acquiring other providers and expanding their roles with AWS.

Digital transformation has made Australian enterprises more aware of how much business data they can gather and use, and the recent disruptions have made the need for data even more urgent, ISG says. More companies are now seeking advanced data analytics capabilities, including the use of machine learning, and many have adopted AWS as the platform of choice for these functions. Amid the shortage of skilled personnel in this field, enterprises are turning to service providers for analytics capabilities.

The sharp expansion of remote work during the pandemic, as well as industrial disruptions such as supply chain issues and plant shutdowns and reconfigurations, have increased Australian investments in IoT, according to ISG. In response, service providers have quickly aligned their portfolios with the changing market, adding complementary services such as IoT analytics.

Many Australian companies pursuing digital transformation are migrating their SAP instances to AWS or implementing entirely new instances on the platform, the report says. The pandemic has only increased the pressure to move workloads to the cloud, and many enterprises are engaging with providers of SAP migration and management services.

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The ongoing business disruptions and transformations in Australia have also increased demand for enterprise IT consulting services covering workload migration, application modernization, workplace transformation, security, governance and other needs, ISG says. With the growing use of AWS as a core IT platform, demand for consulting services from providers that are partnered with AWS is also increasing.

The 2021 ISG Provider Lens™ AWS Ecosystem Partners report for Australia evaluates the capabilities of 38 providers across six quadrants: AWS Managed Services, AWS SAP Workloads, AWS Data Analytics and Machine Learning, AWS Internet of Things (IoT) Services, AWS Migration Services, and AWS Consulting Services.

The report names Accenture, Deloitte and TCS as Leaders in all six quadrants. It names DXC Technology, Infosys and Versent as Leaders in four quadrants each and AC3 and Cognizant as Leaders in three quadrants each. HCL and Wipro are named as Leaders in two quadrants each, and Datacom, Intellify and Telstra Purple are named as Leaders in one quadrant each.

In addition, Slalom is named as a Rising Star—a company with a “promising portfolio” and “high future potential” by ISG’s definition—in two quadrants. CMD, Datacom and Lemongrass are named as Rising Stars in one quadrant each.

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