The latest ISG Buyers Guide for Cloud Computing Platforms uncovers the market evolution of regional and global cloud providers. Buyers Guides for Public Cloud Platforms, Private Cloud Platforms and Hybrid Cloud Platforms are part of the recent software provider evaluations. ISG Software Research defines Cloud Platforms as a software service for organizations to access virtualized IT resources via the internet on a pay-per-use basis. These resources include servers, data processing power, data storage, networking infrastructure, virtualization capabilities and more. Cloud platforms are an enterprise alternative to operating on-premises data centers and compute environments. However, not all cloud platforms are suitable for all enterprise use cases. Multiple capabilities remain underrepresented and will keep enterprises from accelerating the adoption of cloud-powered services and broader migration of workloads. This analyst perspective highlights opportunities for cloud service providers to better meet enterprise requirements in the coming years.
Multi-cloud architecture is the use of multiple cloud computing and storage services in a single network architecture. This refers to the distribution of cloud assets, software, applications and more across several cloud environments. With a multi-cloud strategy, enterprises can leverage the cloud environment that best meets the needs of a specific workload. The need to avoid cloud service provider lock-in and optimize each workload with the best platform has led to the rise of multi-cloud strategies.
If the enterprise organization aims to avoid software provider lock-in, optimize workload performance and increase resilience, a multi-cloud approach could be beneficial. It is advantageous for businesses that use a variety of IaaS, PaaS and SaaS solutions.
In our Buyers Guide evaluations, only a few cloud providers explicitly highlighted other providers that work well in combination with their own services to deliver multi-cloud capability. Generally, the recommendations equate to a cloud-to-cloud interconnect function exists such that cloud data traffic never goes over the internet.
The addition of hybrid cloud services to an enterprise, which combine public and private clouds, adds a layer of complexity to monitoring and management of network resources. A similar situation exists for incorporating multi-cloud services in the enterprise from multiple public cloud providers. Integration between different cloud platforms and on-premises systems leads to interoperability challenges. Cloud providers may use different protocols and standards from those found within the enterprise. Cloud management and monitoring was cited as a leading challenge by 35% of enterprises participating in the ISG Market Lens Cloud study.
Visibility across all cloud environments should be a requirement for enterprise adoption. Achieving the goal of unified management for hybrid and multi-cloud environments will require the adoption of third-party tools or the assistance of a managed services provider. Capabilities to consider when evaluating management and monitoring of hybrid cloud and multi-cloud services include application development and deployment, unified management and monitoring, configuration management, service orchestration, and automation of cloud provisioning and scaling.
Another type of cloud deployment type that is gaining momentum is sovereign cloud. Sovereign cloud refers to a cloud infrastructure that is operated within the borders of a specific country and is compliant with its data sovereignty laws. It is often used by government agencies or industries with strict regulatory requirements. The increasing importance of data sovereignty and privacy concerns in many countries has led to the emergence of sovereign clouds.
While GDPR has gained most of the attention for design and availability of sovereign cloud computing services across the European Union, several providers in China are marketing government data security compliance and sovereign services now. The U.S. FedRAMP-authorized cloud product program has also been in place for several years and was formally codified with the signing of the FedRAMP Authorization Act of 2023, now consisting of more than 280 cloud service providers in the program.
With the market emphasis on public and private cloud shifting to hybrid, multi-cloud and sovereign cloud deployments, we assert that through 2025, the cloud service provider ecosystem will remain largely unchanged 
except for emerging community, industry and sovereign country providers.
An enterprise organization operating in a country with strict data sovereignty laws or classified as a government entity could find a sovereign cloud to be the right choice. It is designed to meet specific regulatory requirements and protect national data sovereignty.
Even if your enterprise is not a government agency or in partnership with an agency, consider ways to develop or refine data governance and compliance programs. Data governance policies need to be established that comply with industry regulations across different cloud environments.
Despite the rapid advancements in cloud computing, a significant gap remains in addressing the needs of users with skills challenges or accessibility requirements. Currently, most cloud service providers do not offer capabilities for Natural Language Processing (NLP) that enable voice or text interactions for administering cloud services. This limitation can hinder the effectiveness of users who may struggle with traditional interfaces or lack advanced technical skills.
The absence of NLP-driven interfaces means that users must rely on command-line tools or graphical user interfaces, which can be daunting for those with limited technical expertise or accessibility needs. This gap not only affects productivity but also limits the inclusivity of cloud services, potentially excluding workers who could help fill IT staff vacancies. Cloud service providers should create more intuitive and user-friendly interfaces that allow users to interact with services through natural language commands.
The emerging markets for hybrid cloud, multi-cloud and sovereign cloud deployments present significant opportunities for enterprise innovation and the growth of data applications. However, these advancements come with their own set of challenges, particularly in the areas of monitoring and management. The complexity of managing diverse cloud environments requires comprehensive tools and strategies to ensure integration, security and cost efficiency with as little friction as possible.
Selecting cloud service providers for hybrid and multi-cloud deployments is a strategic business decision and one that must be carefully considered. The cloud strategy must align with the organization’s business objectives and adapt with the needs of the enterprise. Security standards and regulatory requirements will evolve over time. Integration with existing on-premises systems and other cloud services requires extensible APIs and support for open standards. Uptime, performance and reliability of services varies by provider and agreement. Pricing may look attractive for current usage models while cost management tools enable financial operations (FinOps) to effectively monitor and optimize cloud spending. Informed recommendations and a successful cloud journey are only possible when the organization’s strategic goals are in alignment.
Additionally, the lack of accessibility features, such as NLP for voice or text interactions, highlights a gap in current cloud service usability. Addressing these limitations can democratize cloud administration, making it more inclusive and user-friendly.
For further insights, explore our cloud computing analyst perspectives and visit our cloud computing research for analysis and advisory.
Regards,
Jeff Orr
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