Enterprises turn to Microsoft ecosystem for technology to make business more predictable, efficient, resilient, ISG Provider Lens™ report says
STAMFORD, Conn., May 01, 2025--(BUSINESS WIRE)--Enterprises around the world are turning to Microsoft’s AI and cloud ecosystem to support projects that will help them navigate unpredictable markets, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.
The 2025 ISG Provider Lens™ Microsoft AI and Cloud Ecosystem global report finds macroeconomic uncertainty is driving enterprise initiatives to improve business visibility, predictability and resilience. Companies are investing in AI and cloud capabilities, including many from Microsoft and its partners, to enable greater innovation. They are also focusing on cybersecurity, data and analytics and infrastructure modernization, including hardware replacements driven by the impending end of life for Windows 10.
"Companies need more information and better tools to make decisions in turbulent markets," said Shriram Natarajan, leader, tech modernization for ISG. "For many, the Microsoft ecosystem offers a strong set of AI and cloud technologies to build upon as they work to meet evolving needs."
As inflation fears and margin pressures grow, enterprises are emphasizing technology projects that enable controlled business growth and effective cost management, the report says. They seek provider engagements that deliver incremental business value, often involving accelerators and industry-specific solutions. In response, providers are adapting their offerings to deliver measurable business outcomes.
The need to justify spending has become nearly constant, so controlling cloud costs remains a high priority, ISG says. This is fueling demand for solutions and services that increase cloud utilization, strengthen governance and provide end-to-end security on Microsoft Cloud. Services related to FinOps, data fabrics and AI are especially in demand.
Facing rising labor costs, technology skills shortages and the complexity of hybrid work, companies are also launching initiatives to improve employee experience and maximize retention, the report says. They are partnering with providers to scale nascent implementations of AI tools, including Microsoft Copilot, to achieve cost savings and higher human productivity.
Many enterprises trying to adopt AI and generative AI are still struggling to move beyond the pilot phase and into production, the report finds. This increases demand for services to optimize AI implementation, especially in predictive analytics applications, including demand forecasting, supply chain optimization and customer behavior prediction.
"The use of GenAI, agentic AI and machine learning will grow substantially in the next two to three years," said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. "Microsoft and its ecosystem partners are evolving their AI strategies for Azure to facilitate this adoption."
The report also explores other Microsoft AI and cloud trends, including the growing importance of hybrid clouds and the Microsoft ecosystem’s role in supporting improved sustainability.
For more insights into the Microsoft-related challenges enterprises face, plus ISG’s advice for addressing them, see the ISG Provider Lens™ Focal Points briefing here.
The 2025 ISG Provider Lens™ global Microsoft AI and Cloud Ecosystem report evaluates the capabilities of 38 providers across three quadrants: AI Services for the Microsoft Clouds, FinOps Services and Data Fabric on Azure.
The report names Accenture & Avanade, Capgemini, HCLTech, IBM and Infosys as Leaders in all three quadrants. It names Cognizant, Deloitte, TCS and Wipro as Leaders in two quadrants each. DXC Technology, Kyndryl, NTT DATA, Rackspace Technology and Tech Mahindra are named as Leaders in one quadrant each.
In addition, Cognizant, Hexaware, TCS and Tech Mahindra are named as Rising Stars — companies with a "promising portfolio" and "high future potential" by ISG’s definition — in one quadrant each.
In the area of customer experience, HCLTech is named the global ISG CX Star Performer for 2025 among Microsoft Cloud Ecosystem providers. HCLTech earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.
A customized version of the report is available from Korcomptenz.
The 2025 ISG Provider Lens™ global Microsoft AI and Cloud Ecosystem report is available to subscribers or for one-time purchase on this webpage.
About ISG Provider Lens™ Research
The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.
About ISG
ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.
