Market Perspectives

ISG Buyers Guide for Cloud Platforms in 2025 Classifies and Rates Software Providers

Written by ISG Software Research | Nov 5, 2025 1:00:02 PM

ISG Research is happy to share insights gleaned from our latest Buyers Guide, an assessment of how well software providers’ offerings meet buyers’ requirements. The Cloud Platforms: ISG Research Buyers Guide is the distillation of a year of market and product research by ISG Research.

Cloud Platform software stands at the forefront of complex digital transformations in enterprise. Each cloud model presents unique benefits and challenges, enabling enterprises to tailor their IT strategies to align with specific business needs. This Buyers Guide explores the nuances of each cloud model, highlighting the essential functionality and trends that enterprises must heed to make informed decisions in this ever-changing environment.

ISG Research defines Cloud Platform software as the confluence of Public Cloud, Private Cloud, Hybrid Cloud and Sovereign Cloud, offering enterprises a spectrum of options for resource deployment and management. Each cloud model serves distinct segments of industries, addressing specific challenges. For example, the Public Cloud supports startups with cost-effective solutions, whereas the Private Cloud caters to enterprises with heightened security needs. Hybrid Cloud solutions find favor among enterprises seeking flexibility, while Sovereign Cloud options help those navigating stringent local compliance requirements.

ISG asserts that through 2027, over 90% of enterprise organizations will operate hybrid and multi-cloud deployments to distribute cloud-native workloads for resilience, compliance and operational agility.

The journey of Cloud Platform software has evolved significantly over the past two decades. The Public Cloud gained prominence with early innovators offering cloud services, transitioning from a niche offering to a cornerstone of modern enterprise infrastructure. Private Cloud solutions emerged in response to demands for stricter data control, while Hybrid Cloud strategies arose from the recognition that enterprises can maximize efficiency by blending both models. In recent years, the Sovereign Cloud concept has gained traction amidst increasing data protection regulations, requiring enterprises to adhere to local compliance standards.

Cloud computing has transformed the way businesses operate since its inception in the late 2000s, evolving from a niche concept into a vital component of modern IT strategy. The Public Cloud has emerged as a game-changer for enterprises looking to harness the power of scalable resources while minimizing costs. By leveraging third-party services accessible via the internet, enterprises can focus on innovation rather than infrastructure, facilitating a rapid deployment of applications and services. However, as appealing as the cost efficiencies may be, IT leaders must tread carefully, balancing the advantages of shared resources with the paramount concerns of data security and regulatory compliance. As the adoption of Public Cloud services continues to rise, understanding its implications for governance and risk management becomes crucial for decision-makers.

For enterprises that prioritize security and compliance, Private Cloud represents a robust solution tailored to meet stringent regulatory demands. Offering exclusive control over data and applications, this model empowers IT leaders to implement sophisticated security protocols without sacrificing performance. Whether hosted on-premises or through a trusted third-party provider, the Private Cloud allows for customized configurations that align with an enterprise’s specific needs. As the landscape of data privacy regulations becomes increasingly complex, businesses that leverage Private Cloud solutions can confidently navigate compliance challenges while fostering an atmosphere of trust and security.

Hybrid Cloud is rapidly becoming the preferred strategy for enterprises seeking to optimize their IT infrastructure by blending the strengths of both Public and Private Cloud models. This versatile approach enables enterprises to harness the scalability of Public Cloud while maintaining the security and control of Private Cloud for sensitive workloads. By strategically distributing resources across different environments, IT leaders can enhance agility and performance, responding swiftly to evolving business needs. As enterprises become more sophisticated in their cloud strategies, the Hybrid Cloud has emerged as a crucial enabler for balancing operational efficiency with security and compliance.

Sovereign Cloud stands out where data privacy and local compliance are gaining unprecedented importance as a tailor-made solution for enterprises navigating complex regulatory landscapes. By ensuring that sensitive data remains within geographic boundaries and is controlled by trusted providers, Sovereign Cloud models empower enterprises to uphold jurisdiction-specific laws and governance practices. This focus on local compliance not only mitigates risks associated with cross-border data transfers but also solidifies an enterprise’s commitment to data sovereignty. Adopting Sovereign Cloud strategies becomes imperative for preserving enterprise reputations and building consumer trust while business leaders grapple with the implications of global data regulations.

To make informed buying decisions regarding Cloud Platform software, enterprises should prioritize an understanding of their specific business requirements and the potential implications of each cloud model. Evaluating security and compliance features offered by providers, understanding total cost of ownership and assessing integration capabilities with existing systems are critical steps in this process. Engaging key stakeholders in discussions, focusing on long-term goals and conducting thorough provider assessments ensures that enterprises select solutions that best fit their strategic objectives.

Successful Cloud Platform software must offer scalability, flexibility and robust security features to effectively support enterprise demands. In Public Cloud environments, it is fundamental to provide reliable service delivery and comprehensive customer support. For Private Cloud solutions, customization options and compliance with industry-specific regulations are paramount. Hybrid Cloud systems should enable seamless integration and dynamic workload management, while Sovereign Cloud solutions must prioritize local compliance and data sovereignty while ensuring strong data governance practices.

Cloud platforms leverage artificial intelligence (AI) and machine learning (ML) functionalities to enhance their services and streamline operations. One of the key innovations is AI/ML-as-a-Service, which provides essential resources for model training, enabling organizations to develop sophisticated algorithms without the burden of managing complex infrastructure. Generative AI (GenAI) tools are emerging to support IT teams in creating comprehensive documentation that covers cloud integration and operational procedures with existing enterprise systems. Looking ahead, the anticipated arrival of agentic AI within the next couple of years promises to revolutionize cloud management by automating and orchestrating administrative tasks. Together, these advancements demonstrate how Cloud Platforms are harnessing AI and ML to enhance efficiency, improve collaboration and optimize resource management.

Enterprises considering Cloud Platform software providers should emphasize evaluating security and compliance features, scalability and flexibility of service offerings, cost structures and integration capabilities with existing enterprise systems. Fostering a multi-cloud strategy can further mitigate provider lock-in risks while enhancing operational efficiency.

The ISG Buyers Guide™ for Cloud Platform software evaluates software providers and products in key areas that include Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), Software-as-a-Service (SaaS), Public Cloud, Private Cloud, Hybrid Cloud, Sovereign Cloud, AI/ML-as-a-Service, Compute-as-a-Service, Data-Platform-as-a-Service, Function-as-a-Service, Networking-as-a-Service, Storage-as-a-Service, GenAI and Agentic AI, Cloud Application Marketplace, Global Reach and investments in capabilities. By focusing on these essential dimensions, the guide equips enterprises with the insights needed to make informed purchasing decisions that align with their strategic business objectives.

This research evaluates the following eight software providers that offer products that address key elements of Cloud Platforms as we define it: AWS, Google Cloud, IONOS, Microsoft, Oracle, OVHcloud, Scaleway and T-Systems.

This research-based index evaluates the full business and information technology value of cloud platforms software offerings. We encourage you to learn more about our Buyers Guide and its effectiveness as a provider selection and RFI/RFP tool.

We urge organizations to do a thorough job of evaluating cloud platforms offerings in this Buyers Guide as both the results of our in-depth analysis of these software providers and as an evaluation methodology. The Buyers Guide can be used to evaluate existing suppliers, plus provides evaluation criteria for new projects. Using it can shorten the cycle time for an RFP and the definition of an RFI.

The Buyers Guide for Cloud Platforms in 2025 finds Microsoft first on the list, followed by Oracle and Google Cloud.

Software providers that rated in the top three of any category ﹘ including the product and customer experience dimensions ﹘ earn the designation of Leader.

The Leaders in Product Experience are:

  • Microsoft.
  • Google Cloud.
  • Oracle.

The Leaders in Customer Experience are:

  • Oracle.
  • AWS.
  • Google Cloud.

The Leaders across any of the seven categories are:

  • Google Cloud and Oracle, which have achieved this rating in six of the seven categories.
  • AWS in five categories.
  • Microsoft in four categories.

 

The overall performance chart provides a visual representation of how providers rate across product and customer experience. Software providers with products scoring higher in a weighted rating of the five product experience categories place farther to the right. The combination of ratings for the two customer experience categories determines their placement on the vertical axis. As a result, providers that place closer to the upper-right are “exemplary” and rated higher than those closer to the lower-left and identified as providers of “merit.” Software providers that excelled at customer experience over product experience have an “assurance” rating, and those excelling instead in product experience have an “innovative” rating.

Note that close provider scores should not be taken to imply that the packages evaluated are functionally identical or equally well-suited for use by every enterprise or process. Although there is a high degree of commonality in how organizations handle cloud platforms, there are many idiosyncrasies and differences that can make one provider’s offering a better fit than another.

ISG Research has made every effort to encompass in this Buyers Guide the overall product and customer experience from our cloud platforms blueprint, which we believe reflects what a well-crafted RFP should contain. Even so, there may be additional areas that affect which software provider and products best fit an enterprise’s particular requirements. Therefore, while this research is complete as it stands, utilizing it in your own organizational context is critical to ensure that products deliver the highest level of support for your projects.

You can find more details on our community as well as on our expertise in the research for this Buyers Guide.