ISG report finds Ukraine conflict hindering Nordic cloud adoption
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Supply chain disruptions are intensifying due to the conflict in Ukraine, affecting IT investments and consequently, cloud adoption across the Nordics, according to a new research report published today by Information Services Group (ISG).
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.
According to ISG, this trend underscores the need for implementing agile and efficient cloud technologies that can adapt to evolving market conditions. The demand for hybrid and multicloud technology 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.
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