Robust Networks Help Nordics Maintain Digital Edge

The data center outsourcing industry across the Nordics remains strong despite lingering impacts of COVID, the fallout from the conflict in Ukraine and the resulting spike in energy costs, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2023 ISG Provider Lens™ Private/Hybrid Cloud — Data Center Services report for the Nordics finds the current surge in operating costs is likely to be temporary and, over the long term, those costs will continue to fall. To that end, service providers in the Nordics are automating several IT operations to blunt the current high cost of labor.

“There’s no question the COVID-19 pandemic and the conflict between the Ukraine and Russia have caused some economic difficulties,” said Ola Chowning, ISG partner, North Europe. “Even so, the IT market in the Nordics continues to show brisk growth.”

Compared with other regions, the data center outsourcing industry in the Nordics is highly evolved. The countries in the region have a robust IT infrastructure, characterized by high-speed broadband internet penetration, the ISG report says. Most enterprises across the Nordics operate in a complex, hybrid and multicloud environment.

According to the ISG report, leading service providers have developed a robust suite of tools that include AIOps and infrastructure-as-code (IaC), along with a repository of automation blueprints. As a consequence of recent cyber intrusions and attacks, cybersecurity and data privacy rank high on the list of priorities for the Nordic nations, ISG says.

To address data and security concerns and to mitigate the rise in costs, some Nordic enterprises are adopting technologies from niche companies, the ISG report says. Despite the rise of these smaller, more narrowly focused companies, well-established service providers still dominate in the region. Enterprises across the Nordics, with their complex, sophisticated networks that operate across multicloud environments, will continue to rely on providers that are known quantities in this space and that have the backing of key hyperscalers, ISG says.

“Nordic enterprises require scalable hosting solutions that provide stringent data security and privacy,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Service providers are leveraging their partnerships with ISVs (independent software vendors) and hyperscalers to build agile cloud environments that can meet these needs and still deliver high-performance computing.”

The report also examines how the proliferation of industry-specific IoT technologies and 5G will drive demand for a distributed edge computing infrastructure.

The 2023 ISG Provider Lens™ Private/Hybrid Cloud — Data Center Services report for the Nordics evaluates the capabilities of 52 providers across four quadrants: Managed Services for Large Accounts, Managed Services for Midmarket, Managed Hosting and Colocation Services.

The report names Orange Business as a Leader in all four quadrants, while ATEA, CGI and Tietoevry are named as Leaders in three quadrants each. Fujitsu, Kyndryl and T-Systems are named as Leaders in two quadrants each, while Accenture, Bulk Infrastructure, Capgemini, Digital Realty, EcoDataCenter, Equinix, Green Mountain, HCLTech, LTIMindtree, Sopra Steria, Stack Infrastructure, TCS, Tech Mahindra, Verne Global (Ficolo) and Wipro are named as Leaders in one quadrant each.

In addition, DXC Technology is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants.

The 2023 ISG Provider Lens™ Private/Hybrid Cloud — Data Center 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, 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.

A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.

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 automation, 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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Contact information

Press Contacts:

Will Thoretz, ISG
+1 203 517 3119
will.thoretz@isg-one.com

Julianna Sheridan, Matter Communications for ISG
+1 978-518-4520
isg@matternow.com