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 Public Cloud Platforms: ISG Research Buyers Guide is the distillation of a year of market and product research by ISG Research.
The Public Cloud has emerged as a necessity for enterprises looking to
ISG Research defines Public Cloud as services owned and operated by third-party providers, making them accessible to everyone over the internet. This widespread reach allows multiple enterprises to share resources, fostering cost efficiency and scalability. The Public Cloud model is characterized by its on-demand service delivery, where users can scale resources up or down based on real-time needs. This model is particularly advantageous for startups and small to medium enterprises that benefit from reduced capital expenditure while swiftly deploying applications and services.
Industries such as e-commerce, media and entertainment and software development are among the strongest adopters of Public Cloud software, as they require rapid scalability and collaboration. Larger enterprises also take full advantage of Public Cloud applications, often for non-sensitive workloads or as part of a diversified cloud strategy. Such enterprises may utilize Public Cloud services to enhance innovation and competitive agility while carefully managing any associated risks regarding data security and compliance due to the shared nature of these platforms.
The journey of the Public Cloud began in the early 2000s when pioneers like Amazon Web Services (AWS) introduced the concept of on-demand computing resources. Initially, this model appealed primarily to startups and technology innovators seeking cost-effective solutions to launch applications without heavy upfront investments in infrastructure. As businesses rapidly embraced digital transformation, the Public Cloud evolved, with service providers expanding offerings to include comprehensive cloud services that support platforms, storage and analytics. By now, enterprises across all sectors recognize the Public Cloud's capacity to facilitate rapid innovation and agility, defining it as a cornerstone of today’s enterprise IT strategy.
The Public Cloud continues to evolve with advancements in artificial intelligence (AI), machine learning (ML) and serverless computing. These innovations provide enterprises with increasingly sophisticated tools to drive efficiency and optimize performance. The rise of multi-cloud strategies also illustrates how companies are navigating the complexities of the cloud journey, balancing the benefits of public services with the necessity for robust data governance and security measures.
Enterprises need to prioritize a thorough understanding of the specific business requirements and the potential implications of adopting a third-party managed Public Cloud infrastructure to make informed buying decisions. Key considerations should include evaluating technical needs, such as the required storage, processing power and application compatibility. Additionally, it is crucial for enterprises to assess the provider's reputation for reliability and security, as well as compliance with relevant data protection regulations.
Enterprises must also analyze the total cost of ownership (TCO) associated with Public Cloud usage. This encompasses not only the pricing structure of the services, but also potential costs related to data egress, support and unanticipated usage spikes. As the landscape of Public Cloud offerings continues to diversify with a plethora of providers, businesses should conduct comprehensive market research, compare features and pricing and engage in proof-of-concept testing to ensure that the chosen application aligns with long-term technological strategy and operational agility.
Successful Public Cloud software must prioritize scalability and flexibility to meet the dynamic demands of enterprise environments effectively. As business needs evolve, enterprises require applications that can quickly adjust resource allocation to scale operations up or down without unnecessary delays or costs. Strong automation capabilities are also necessary to streamline resource management, reduce manual workloads and ensure a more responsive IT infrastructure.
Security features are also paramount; enterprises must have robust protocols in place to safeguard data, maintain compliance with industry regulations and protect against potential breaches. Successful Public Cloud applications should provide a comprehensive set of security tools, including encryption, identity management and monitoring services, allowing enterprises to maintain control over critical data assets. Seamless integration capabilities with existing on-premises systems and other cloud platforms are also essential for ensuring a cohesive and efficient IT strategy that amplifies the best aspects of multiple environments.
In the realm of Public Cloud, three of the leading enterprise use cases for generative AI include content generation, advanced analytics for customer insights and real-time collaboration tools. Enterprises are maximizing generative AI within Public Cloud services to create personalized marketing materials, automated write-ups and multimedia content at scale. Additionally, AI algorithms are utilized to analyze vast amounts of customer data, generating actionable insights that inform product development, enhance user experiences and optimize marketing strategies. Cloud-based collaboration platforms with GenAI capabilities are also facilitating enhanced teamwork, where teams can brainstorm and iterate on creative projects in real-time, utilizing AI to suggest ideas and streamline workflows.
In Public Cloud environments, one potential use case for incorporating agentic AI technology is in automated customer support systems, which can proactively engage with customers to resolve issues and enhance user satisfaction. By using natural language processing and machine learning algorithms, these systems can understand customer inquiries and provide timely, context-aware solutions, effectively reducing response times and freeing human agents to focus on more complex queries. Additionally, agentic AI can be employed for real-time market analysis and competitive intelligence, continuously scanning the digital landscape to gather insights that inform business strategies and optimize service delivery based on emerging trends.
Enterprises considering Public Cloud software providers should prioritize evaluating the security and compliance features offered by various providers, as data protection and adherence to regulations are important in shared infrastructure environments. Businesses should conduct thorough assessments of each provider's service level agreements (SLAs) to understand performance guarantees and support availability. Enterprises also need to analyze the total costs associated with the Public Cloud, including potential hidden charges related to data transfer and resource usage. And fostering a multi-cloud strategy can mitigate vendor lock-in risks, allowing businesses to focus on the best capabilities from multiple providers while maximizing operational efficiency.
The ISG Buyers Guide™ for Public Cloud evaluates software providers and products in key areas. These include IaaS, PaaS, SaaS, infrastructure, security, regulatory compliance, data encryption, identity and access management, performance and usage monitoring, scalability, load balancing, resource management, cost structure, cost optimization, professional services, application marketplace, use of GenAI and agentic AI 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 strategic business objectives.
This research evaluates the following 24 software providers that offer products to address key elements of Public Cloud platforms as we define it: Akamai, Alibaba Cloud, AWS, Baidu AI Cloud, China Unicom, Clever Cloud, CloudFerro, DigitalOcean, Google Cloud, Hetzner Cloud, Huawei Cloud, IBM, IONOS, Kingsoft, kt cloud, Leaseweb, Microsoft, Oracle, OVHcloud, Scaleway, Schwarz Digits, T-Systems, Tencent Cloud and Vultr.
This research-based index evaluates the full business and information technology value of public 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 public 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 Public Cloud Platforms in 2025 finds Microsoft first on the list, followed by Google Cloud and AWS.
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:
The Leaders in Customer Experience are:
The Leaders across any of the seven categories are:
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 public 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 public 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.