In this edition: Cloud-buying interest at large enterprises increased significantly in the first half of the year. Transport for London building new mobility system. Two PE-backed firms continue Salesforce M&A spree.
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CLOUD
Cloud-buying interest at large enterprises increased significantly in the first half of the year. Using our proprietary buyer intent research and technology, we’re able to identify enterprises that are in the early to mid stages of the technology services buying process – often even before they’ve engaged with providers.
Our latest research indicates that the number of Forbes Global 2000 companies showing increased buying intent for cloud services has more than doubled since December 2020. And even more interestingly, when we broke the G2000 into segments by company size, the G1 to G500 segment saw the biggest increase in the number of companies showing increased interest in cloud services (see Data Watch).
As we discussed at length over the past several Index calls, we believe we’re just now entering the heavy-lifting phase of the cloud era. While millions of workloads have moved or been created on the hyperscale platforms, there is still a mountain of legacy enterprise systems to migrate or modernize.
And this is why we believe as-a-service ACV will continue on its exceptional growth trajectory (2Q21 ACV up 38% Y/Y) and why providers will continue to double down on creating new cloud services, hiring cloud talent, acquiring boutique firms and creating partnerships with leading cloud providers.
DATA WATCH
DEAL ACTIVITY
- Transport for London signs 10-year agreement with TCS for new smart mobility system (link); Colombian airline Avianca selects TCS to modernize its infrastructure on Azure (link).
- Canadian non-profit Manitoba Public Insurance digitizing 900,000 citizen records with Infosys (link).
- State of New Hampshire extends Medicaid support and modernization agreement with Conduent (link).
- Australian energy company AusNet Services moving SAP and data collection systems to Azure; LAB3, SoftwareONE and Wipro are key partners (link).
- Canadian financial services firm Sun Life selects AWS as primary cloud platform (link).
M&A
About the author
Stanton Jones
Stanton leads ISG's Index research, helping providers, investors and ISG clients make sense of the global IT services sector. Stanton’s weekly newsletter, the Index Insider, is read by thousands of market stakeholders each week. An ISG Digital Fellow, Stanton has been quoted in Fast Company, Forbes and CIO.com, and has appeared on national cable news.
