Tag: digital

How to Clear Up Industry Cloud Confusion and Choose the Right Solution

With so many industry cloud platforms available from different technology players, selecting the right solution for your enterprise is not simple. Learn the important characteristics to look for from providers in this latest blog in our industry cloud series.

As cloud technology matures, industry-specific solutions are emerging as a leading preference over generic options to deliver efficiency, experience, innovation, and business-enabled growth. According to Everest Group’s latest survey, a staggering 87% of enterprises rate industry cloud as one of their top three investment priorities.

The supply landscape is heating up with technology providers leading with an industry cloud-focused go-to-market narrative, investing in multiple offerings for target verticals, initiating industry cloud-dedicated partner launch programs, and announcing large enterprise engagements.

Many technology providers operating in different spaces are approaching this market in their own ways. In our last two blogs on this topic, Demystifying Industry Cloud and The Battle for Supremacy in Industry-specific Cloud Has Begun, we discussed the evolving industry cloud solution provider landscape and go-to-market strategies adopted by key ecosystem players.

Read on for a deep dive into suppliers’ industry cloud offerings and our recommendations to equip enterprises to select the best-suited industry cloud solution for them.

The industry cloud solution marketplace is proliferating

The following three broad categories of industry-specific cloud solutions are emerging in the market:

  • Cloud infrastructure providers such as Microsoft Cloud for Manufacturing, AWS for Health, and Google Cloud for Telecommunications focus on providing an industrialized set of cloud solutions and services tailor-made for specific industries. Industry-specific configurations, interfaces, use cases, and blueprints are embedded into existing functionalities and bundled with partner solutions
  • Enterprise platform providers such as Salesforce Financial Services Cloud, SAP Digital Manufacturing Cloud, and Oracle Retail Cloud embed industry-specific processes, solutions, and frameworks into their horizontal applications and functions to enable industry specificity
  • Business solution providers such as Veeva Systems Life Sciences Cloud, Temenos Banking Cloud, and Guidewire Cloud for Insurance deliver true and heavily nuanced vertical solutions by providing niche industry-specific functionalities covering the breadth and depth of the value chain, targeting industry pain points

Though the objectives appear similar, technology providers take different routes for portfolio development based on their heritage and core strengths and provide varying degrees of industry specificity, adaptability, and improvisation.

For instance, cloud infrastructure providers offer flexible and ecosystem-driven industry cloud, while business solution providers have a more exhaustive use case coverage.

How to select the right industry cloud for your firm?

Enterprises need to make informed decisions when selecting providers of choice and carefully consider their business objectives, existing technology landscape, level of industry-specificity and enterprise-contextualization required, and preferred consumption model (off-the-shelf solution versus customized offerings).

Below, we detail the key characteristics of each solution type to assist enterprises in selection.

  • Industry cloud solutions by cloud infrastructure providers

Cloud infrastructure players provide a basic level of industry-specific functionalities and configurations powered by advanced cloud computing and next-generation technology capabilities in data analytics, Artificial Intelligence and Machine Learning (AI/ML), and the Internet of Things (IoT).

These most benefit existing consumers of cloud infrastructure providers’ technology stack that intend to digitize their platforms and services by co-creating or co-developing solutions with ecosystem players, instead of preferring directly consumable end-to-end industry cloud offerings.

Level of industry-specificity: Low-medium

Degree of customization: High

  • Industry cloud solutions by enterprise platform providers

Enterprise consumers of Customer Relationship Management (CRM), Enterprise Resource Planning (ERP), and other horizontal applications focused on achieving unified customer relationships, and employee experience can leverage industry cloud solutions by these providers.

Enterprise platform providers provide out-of-the-box industry solution workflows, built on core horizontal enterprise platform functionalities consisting of purpose-built functionalities, pre-built data models, and automation and AI/ML capabilities for particular industries.

Their focus is on digitizing vertical systems across the front, middle, and back offices, powered by customer data-related insights and integration between the sales and operations teams. These offerings have a limited level of customization and are usually available as different editions of off-the-shelf offerings.

Level of industry-specificity: Medium

Degree of customization: Medium

  • Industry cloud solutions by business solution providers

Enterprises requiring extensive value chain coverage and high-grade industry-specific cloud solutions that are looking to digitize their industry platforms can consider offerings by business solution providers.

These solutions are delivered in a pre-packaged and composable format. Enterprises can consume these solutions and services in a modular form and augment functionalities by developing vertical-specific solutions and services on top of these platforms.

Level of industry-specificity: High

Degree of customization: Low

  • Interdependence of technology providers and the role of System Integrators (SIs)

These providers cannot independently provide end-to-end expertise across all layers of an industry cloud stack – infrastructure and platform layer, application layer, differentiation layer, and customization layer.

While these players bring their own strengths to the table, they rely on each other to fill in the missing pieces.

Both cloud infrastructure players and enterprise platform providers depend on business solution providers for domain expertise and vertical-specific contextualization. Meanwhile, enterprise platform and business solution providers rely on cloud infrastructure providers for underlying compute and next-generation technology capabilities.

In this ecosystem-led play, SIs play the key role of ecosystem enablers. For an effective industry cloud implementation, enterprises should engage with SIs for enterprise contextualization, industry knowledge, implementation capabilities, and system integration expertise.

Industry cloud offerings in banking and financial services

To illustrate, we compare different industry cloud solutions in the banking and financial services space by these provider categories below:

Picture1 3

The industry cloud outlook

Though this space is witnessing heightened investments and significant interest among enterprises, the market is still primitive, and the road to success is not straightforward.

To ensure optimum value from industry cloud adoption, enterprises need to clearly define their industry-specific cloud requirements, identify target use cases, choose the appropriate sourcing strategy, analyze available solutions, align the partner ecosystem, factor in technology-related dependencies, and consider industry-specific compliance regulations.

To share your thoughts and discuss industry cloud, contact [email protected] and [email protected].

Also, learn how enterprises can measure the value of cloud and how to unlock its full potential to maximize efficiency in our webinar, How to Unlock the Full Value of Cloud.

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Finance and Accounting Outsourcing (FAO) – Service Provider Landscape with PEAK Matrix® Assessment 2022

Top Finance and Accounting Outsourcing Services

The global multi-process Finance and Accounting Outsourcing (FAO) market has continued to grow at a steady rate of approximately 10% in 2022. Surging inflation, a recessionary environment, and geopolitical instability, coupled with pandemic-induced volatility, are driving enterprises to leverage third-party provider support for their finance functions. The need for digital transformation, an increasing number of first-time outsourcers, and growing demand for next-generation technology and high-end Finance and Accounting (F&A) work from mature outsourcers will continue to drive market growth in the near-term.

Some of the key means by which providers are differentiating themselves is by offering end-to-end transformation solutions, combined with domain and industry expertise and innovative Environmental, Social, and Governance (ESG) solutions, flexible pricing models, a design thinking-led approach, transformation frameworks, and next-generation offerings leveraging automation and analytics.

In this research, we assess FAO service providers based on their vision & capabilities and market impact and position them on the Everest Group PEAK Matrix®.

DOWNLOAD THE FULL REPORT Finance and Accounting Outsourcing (FAO) – Service Provider Landscape with PEAK Matrix® Assessment 2022

 

What is in this PEAK Matrix® Report:

This report includes:

  • Everest Group’s Services PEAK Matrix® evaluation, a comprehensive assessment of 27 FAO service providers
    • 2022 FAO PEAK Matrix® Leaders, Major Contenders, and Aspirants, as well as Star Performers
    • Service provider capability assessment
  • FAO service provider landscape
  • Key strengths and limitations of each FAO service provider

Scope:

  • Geography: global
  • Services: FAO

LEARN MORE ABOUT Finance and Accounting Outsourcing (FAO) – Service Provider Landscape with PEAK Matrix® Assessment 2022

 

Our Thinking

F&A Operations Transformation - an Illustrative Example for an Insurance Company
Market Insights™

F&A Operations Transformation – an Illustrative Example for an Insurance Company

Integrated Operations Transformation Approach to F&A Operations
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Integrated F&A Operations Transformation Approach

Industry-specific F&A Solutions-An Evolving Landscape
Market Insights™

Industry-specific F&A Solutions – An Evolving Landscape

Accelerating Blockchain Adoption in F&A
Market Insights™

Accelerating Blockchain Adoption in F&A

What is the PEAK Matrix®?

The PEAK Matrix® provides an objective, data-driven assessment of service and technology providers based on their overall capability and market impact across different global services markets, classifying them into three categories: Leaders, Major Contenders, and Aspirants.

LEARN MORE ABOUT Top Service Providers

Multi-cloud Application Services PEAK Matrix® Assessment 2022

Top Multi-cloud Application Services

Cloud adoption has increased in recent years, with enterprises increasingly investing in modernization initiatives to compete in an evolving digital world. Enterprises are adopting a cloud-first strategy to achieve benefits such as increased business agility, an innovation-first approach, and faster time-to-market. With the availability of multiple cloud service providers, enterprises now have the flexibility to choose the right-fit cloud to best address their requirements, based on the providers’ core services and capabilities. This flexibility is enabling individual business units/functions to deploy applications on the cloud of their choice, leading to a multi-cloud ecosystem. Additionally, loosely coupled modern architectures are allowing enterprises to leverage multiple clouds to deploy different workloads of an application.

The multi-cloud ecosystem gives enterprises the freedom to move between different clouds, which helps avoid vendor lock-ins, optimize costs, and comply with regulatory as well as performance requirements. Thus, multi-cloud adoption is likely to rapidly grow in the coming years, with most enterprises having two or more clouds in their ecosystems, with a combination of one dominant cloud and multiple other clouds.

DOWNLOAD THE FULL REPORT Multi-cloud Application Development Services PEAK Matrix® Assessment 2022

What is in this PEAK Matrix® Report:

This report evaluates:

  • Everest Group’s services PEAK Matrix® evaluation of 15 multi-cloud application development service providers
  • Characteristics of Leaders, Major Contenders, and Aspirants in the service provider landscape
  • Key strengths and limitations of the 15 multi-cloud application development service providers featured in the assessment

Scope:

  • All industries and geographies
  • The assessment is based on Everest Group’s annual RFI process for the calendar year 2022, interactions with leading multi-cloud application services providers, client reference checks, and an analysis of the multi-cloud application services market

LEARN MORE ABOUT Multi-cloud Application Development Services PEAK Matrix® Assessment 2022

 

Our Thinking

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Multi-cloud and Modern Applications: Doomed to Fail

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Multi-cloud: Strategic Choice or Confusion?

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Cloud and Infrastructure Services Category Strategy: Definition and Characteristics

The Growing Need for Cloud Management Platforms
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The Growing Need for Cloud Management Platforms

What is the PEAK Matrix®?

The PEAK Matrix® provides an objective, data-driven assessment of service and technology providers based on their overall capability and market impact across different global services markets, classifying them into three categories: Leaders, Major Contenders, and Aspirants.

LEARN MORE ABOUT Top Service Providers

IT Security Services PEAK Matrix® Assessment 2022 – Europe

Top IT Security Services in Europe

Organizations are leveraging IT security services to improve their security postures and prepare for challenges such as ransomware attacks and business disruptions. The COVID-19 pandemic, the shortage of cybersecurity talent, and the rising of CAPEX and OPEX to maintain in-house security teams, especially during the Great Resignation, have further accelerated the adoption of security services. At its end, the European countries have also started to implement stricter laws to provide better security to their citizens, one key example being the UN regulation that mandates cybersecurity management through defined performance metrics and audit requirements for car manufacturers.

Europe-based enterprises are looking for service providers that can offer geographically nuanced security services, especially in areas such as data security & privacy, verticalized SOCs, converged IT/OT security services, and regulatory assessment services, to make sure that enterprises are not just adhering to ever-evolving EU regulations but also the localized data privacy laws. All these factors combined have surged IT security services demand across Europe.

DOWNLOAD THE FULL REPORT IT Security Services PEAK Matrix® Assessment 2022 – Europe

What is in this PEAK Matrix® Report:

  • Examination of the profiles of 28 IT security service providers in Europe

  • Studies of each provider’s strengths and limitations

  • Evaluation of enterprise sourcing consideration

Scope:

  • Geography: Europe

  • Industries: all industries

  • Services: IT security services

  • The assessment is based on Everest Group’s annual RFI process for the calendar year 2022, interactions with leading IT security service providers, client reference checks, and an ongoing analysis of the IT security services market

LEARN MORE ABOUT IT Security Services PEAK Matrix® Assessment 2022 – Europe

Our Thinking

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Is Managed Detection and Response (MDR) the Holy Grail for Cybersecurity Services?

The Digital Trust Model
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The Digital Trust Model

Establishing Guidelines to Instill Digital Trust
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Establishing Guidelines to Instill Digital Trust

An AWARE Security Operations Center (SOC) Can Drive Digital Trust
Market Insights™

An AWARE Security Operations Center (SOC) Can Drive Digital Trust

What is the PEAK Matrix®?

The PEAK Matrix® provides an objective, data-driven assessment of service and technology providers based on their overall capability and market impact across different global services markets, classifying them into three categories: Leaders, Major Contenders, and Aspirants.

LEARN MORE ABOUT Top Service Providers

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