Microsoft service providers meet increased demand for digital sovereignty in Switzerland

The successively expanded Microsoft data centers in Zurich and Geneva offer Microsoft service providers and their customers new opportunities to redesign the IT infrastructure and IT architecture concepts in companies. In addition, the ongoing implementation of generative AI (GenAI) is fundamentally changing the Microsoft ecosystem. This is according to the new comparative study "ISG Provider Lens Microsoft Cloud Ecosystem Switzerland 2024", published by the market research and consulting company Information Services Group (ISG). Important Swiss principles such as data security and digital sovereignty continue to have the highest priority. In the study, ISG examined the portfolio and competitive strength of 45 IT service providers and product providers operating in the Swiss market for Microsoft services and solutions.

Introduction of generative AI changes the Microsoft ecosystem

"Many Swiss companies, for example in the financial sector, demand full control over the storage, processing and transfer of their sensitive information without having to rely on external service providers," says Uwe Ladwig, Managing Director of ISG in Switzerland. "Service providers in the country must therefore design their offerings in such a way that they not only support the digital sovereignty of their customers, but also impress by defining optimal architectures and operating concepts."

At the same time, Microsoft is currently setting standards as a pioneer in the fusion of artificial intelligence (AI) and cloud technology, particularly with products such as Azure, Microsoft 365 and Dynamics 365. "The progressive introduction of generative AI is fundamentally changing the Microsoft ecosystem. It will lead to sustainable growth and productivity gains," Ladwig continues.

ISG therefore took a close look at the "Generative AI Services" submarket for the first time this year. According to the report, GenAI and various Copilot services are at the heart of Microsoft's market strategy. Copilot Studio, for example, enables users to create their own Copilot frameworks, while Github Copilot provides a tool for automated software programming. To this end, Microsoft is currently investing billions and entering into strategic partnerships with, for example, ETH Zurich and leading Swiss companies.

AI for the prevention of cyberattacks

The new services should ensure additional market growth, for example with Copilot for Security for the development of zero-trust security architectures. According to the ISG study, Microsoft's vision is to use AI to prevent cyberattacks and thus make a significant contribution to security in cyberspace. Microsoft partners, in turn, have the opportunity to tap into new markets with innovative solutions and industry- and customer-specific services based on Azure GenAI Services.

According to the ISG analysts, the requirements of Swiss companies are remarkably diverse. Many companies are just starting to use the basic functions and services of Microsoft 365 and Azure. Others are already asking themselves what comes after Microsoft 365 E5 and how Windows 365 can be logically integrated into the overall strategy. "This constellation presents Microsoft service providers with the task of designing their offering flexibly on the one hand and focusing on the most profitable and sustainable services on the other," explains ISG Managing Director Ladwig.

Market trends in "Managed Services" and "Microsoft 365"

In the "Managed Services for Microsoft Azure" submarket, ISG has noticed an increasing demand in Switzerland for cloud solutions that support local data storage. The aim is to meet high security and data protection standards in this way, which is a sign of the increased awareness of the importance of data sovereignty in highly regulated industries. In parallel with the expansion of the technological infrastructure, IT service providers and managed service providers are refining their offerings through increased automation.

According to the ISG study, there is a trend towards continuous development in the areas of security, compliance and governance for Microsoft 365 services. This development is supported by the increasing integration of data from different platforms in Microsoft 365 applications. Microsoft service providers are therefore faced with the task of sustainably integrating technological innovations into their customers' corporate landscape. According to the study, the focus is on creating tangible added value through high service quality, which has a positive impact on the user experience and therefore increases the acceptance and efficiency of the new solutions in day-to-day business.

Classifications

The "ISG Provider Lens Microsoft Cloud Ecosystem Switzerland 2024" study evaluates the capabilities of a total of 45 providers in five market segments (quadrants): "Managed Services for Azure," "Microsoft 365 Services," "SAP on Azure Services," "Power Platform Services" and "Generative AI Services for the Microsoft Clouds."

The study classifies Swisscom as a "Leader" in all five market segments and SoftwareONE in a total of four segments. Aveniq and ELCA/EveryWare each receive this rating in three segments and Data One, isolutions, Kyndryl, MDW and T-Systems in two each. Accenture & Avanade, Adesso, All for One Group, Allgeier, Ambit Group, Arvato Systems, Baggenstos, Bechtle. BitHawk, Capgemini, Devoteam M Cloud, DIGITALL, Eviden (to Atos Business), PwC, UMB and Wipro are "leaders" in one segment each.

Kyndryl is also designated as a "Rising Star" in two market segments. According to ISG's definition, these are companies with a promising portfolio and high future potential. Bechtle, BitHawk and Eviden (to Atos Business) each receive this classification in one market segment.

In addition, Bechtle receives the "Global ISG CX Star Performer 2024" award in the Microsoft Cloud partner ecosystem in the area of customer experience. Bechtle achieves the highest customer satisfaction scores in the ISG "Voice of the Customer" survey, which is part of the ISG Star of Excellence program, the leading quality award for the technology and business services industry.

Source: www.isg-one.com