The public cloud market is rapidly growing, driven by enterprises’ heightened focus on digital transformation, scalability, and resilience to thrive in a competitive business environment. Google Cloud has become a prominent participant, capitalizing on its comprehensive technology offerings, including cutting-edge data analytics and AI/ML capabilities, to address evolving enterprise needs. With tools such as BigQuery and Vertex AI, along with its commitment to open-source frameworks, Google Cloud is a top choice for organizations focused on data-centric innovation and environmental sustainability.

As the landscape evolves, more enterprises are engaging with Google Cloud service providers to facilitate smooth cloud integration, cost optimization, and cloud-native development. These providers enable organizations to fully leverage Google Cloud, providing specialized expertise in migration, automation, and scalability and delivering industry-specific insights directly aligned with client objectives. To meet these growing demands, Google Cloud providers are expanding their service offerings by acquiring advanced certifications, creating unique tools tailored for Google Cloud, and reinforcing their partnerships with Google.

• Google Cloud Services PEAK Matrix® Assessment 2024

  

  In this report, we assess 26 Google Cloud service providers featured in the Google Cloud Services PEAK Matrix^® Assessment 2024 and categorize them as Leaders, Major Contenders, and Aspirants based on their capabilities and offerings.

  Scope

  • All industries and geographies
  • The assessment is based on Everest Group’s annual RFI process for the calendar year 2024, interactions with leading Google Cloud service providers, client reference checks, and ongoing analysis of the cloud services market

  Contents

  In this report, we examine:

  • The market impact and vision and capabilities of 26 providers with expertise in Google Cloud services
  • The providers’ key strengths and limitations
  • Enterprise sourcing considerations

  READ ON

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

Join Everest Group experts Rohan Pant, Vice President, Ricky Sundrani, Partner, and Richa Tapadia, Practice Director, for an insightful webinar on the evolving landscape of Cloud and Infrastructure Services (CIS) pricing and deal trends for 2025.

As 2024 experienced flat market growth and pricing stability, the next 6-12 months are set to bring significant shifts with far-reaching implications for CIS deals. From anticipated reductions in standard/commodity CIS rates to projected decreases in ACV/TCV for managed services, it is crucial for enterprises and providers to adapt their strategies to remain competitive in an evolving market.

This session will provide a deep dive into key pricing trends shaping the future of CIS deals, evolving solutions and their impact on pricing strategies, and practical guidance for factoring market changes into your bids.

What questions will the webinar answer for the participants?

• Is being the lowest-cost bidder the silver bullet to winning CIS deals for service providers?  
• How is gen AI impacting CIS deals?  
• What are the most common contracting and pricing models observed for CIS deals?

Who should attend? 

• Cloud, Infrastructure & Security (CIS)-focused solution leaders 
• Pre-sales leads 
• BU heads for CIS 
• Sales leaders for CIS 
• Price to Win and Finance leaders 

As AWS evolves, there is a growing demand for AWS providers that can ensure smooth cloud migrations. These providers are essential to transform and manage AWS environments, focusing on managing costs, providing skilled resources, and leveraging cutting-edge technologies to create business value. Their strong partnerships with AWS also allow for customized solutions that cater to specific industry requirements, improve operational efficiency, and foster innovation.

AWS providers are intensifying their joint go-to-market strategies, enhancing their accreditations and competencies, and developing proprietary AWS-focused innovations and solutions. This strategic advance continues to solidify their strong position in the market.

• AWS Services PEAK Matrix® Assessment 2024

  

  In this report, we assess 31 AWS providers featured in the AWS Services PEAK Matrix^® Assessment 2024 and categorize them as Leaders, Major Contenders, and Aspirants based on their capabilities and offerings.

  Scope

  • All industries and geographies
  • The assessment is based on Everest Group’s annual RFI process for the calendar year 2024, interactions with leading AWS providers, client reference checks, and ongoing analysis of the cloud services market

  Contents

  In this report, we examine:

  • The market impact and vision and capabilities of 31 providers with AWS expertise
  • Providers’ key strengths and limitations
  • Enterprise sourcing considerations

  READ ON

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

The Secure Access Service Edge (SASE) services market in the EMEA region is significantly growing, transforming enterprises’ networking and security landscape. The shift toward cloud-centric operations, global hybrid workforce expansion, and the increasing adoption of zero-trust principles drive this evolution. These factors are prompting enterprises to integrate network and security functions, enhance user experiences, strengthen security postures, and simplify their IT environment management. In response, leading SASE service providers in the EMEA region are enhancing their SASE services solution portfolio through strategic technology partnerships and capability enhancements. Providers are also significantly investing in innovation through next-generation technologies such as AI-driven threat detection, automation, and generative AI to further improve the performance, reliability, and adaptability of SASE solutions.

• SASE Services for EMEA Enterprises PEAK Matrix® Assessment 2024

  

  In this report, we assess 15 SASE providers featured on SASE Services for EMEA Enterprises PEAK Matrix^® Assessment 2024 and categorize them as Leaders, Major Contenders, and Aspirants based on their capabilities and offerings.

  Scope

  • EMEA geography
  • All industries
  • The assessment is based on Everest Group’s RFI process for the calendar year 2024, interactions with leading SASE providers in EMEA, client reference checks, and an ongoing analysis of the SASE services market

  Contents

  In this report, we examine:

  • The market impact, vision, and capabilities of 15 providers focused on SASE services in the EMEA region
  • Providers’ key strengths and limitations
  • Enterprise sourcing considerations

  READ ON

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

As organizations embrace cloud-first operations, they often commit to substantial spending on cloud platforms to gain discounts. But, to their dismay, they end up with a significant portion of these commitments being unused.

By acquiring solutions through the marketplaces offered by cloud providers Information Technology (IT) procurement leaders can better utilize spend commitments.

Our survey of procurement professionals reveals that, along with maximizing the value of unused spend commitments, cloud marketplaces are increasingly favored as a sourcing and purchasing channel for their ability to streamline acquisition and accelerate time-to-market.

To explore the findings from our research, including the benefits and challenges of using cloud marketplaces, continue reading.

Reach out to discuss this topic in depth.

In today’s rapidly evolving business landscape, staying competitive and agile requires embracing transformative technologies. At the forefront of this evolution are cloud marketplace platforms like AWS Marketplace, Microsoft Azure Marketplace, and Google Cloud Marketplace.

These platforms are revolutionizing IT procurement by providing a seamless way for organizations to discover, purchase, deploy, and manage software, Software as a Service (SaaS) solution, and related services.

To better understand the impact of cloud marketplaces, we surveyed IT procurement professionals across industries.

This blog explores the survey results, shining a light on the key features, benefits, challenges, and opportunities these platforms present for IT procurement leaders.

IT procurement priorities: Value, Visibility, Velocity 

Technology is evolving quickly, and spending is typically driven by the Chief Technology Officer (CTO) / Chief Information Officer (CIO) at an organization. Even the most aligned sourcing and category managers may struggle to keep up with the technical needs and the pace of change of the business in the modern age.

Most of the time, procurement and IT want the same thing – the best solution as fast as possible, which also offers the best value!

Procurement’s traditional tools and ways of working don’t always optimize for the pace of change and need for visibility. However, cloud contracts and marketplace purchases are one place where IT and Sourcing can align to jointly drive their common goals.

Reimagining procurement with cloud marketplaces

Cloud marketplaces are transforming IT procurement into an intuitive, centralized experience, where buyers can access pre-vetted products and services. Cloud marketplaces enable buyers to discover, evaluate, test, and purchase software, SaaS solutions, and related services.

They also provide tools to track and manage these purchases, offering complete visibility into spending. By aligning with cloud strategies, these platforms help procurement leaders optimize their cloud spending commitments.

Our latest survey revealed the most preferred cloud marketplace platforms in order of popularity:

1. AWS Marketplace
2. Microsoft Azure Marketplace
3. Google Cloud Marketplace

Key features of cloud marketplaces

1. Comprehensive security and compliance
   These platforms prioritize security, implementing robust measures to protect transactions and personal information. Most listed products adhere to security best practices and compliance standards, ensuring a trusted procurement environment. Typical new supplier onboarding boxes may already be checked by marketplace criteria
   
2. Seamless integration
   Solutions available on marketplaces are designed for effortless integration with cloud services, enabling buyers to create cohesive, scalable systems. Integration with back-office systems further streamlines governance
   
3. Private offers for tailored solutions
   Private offers allow customized pricing and terms through direct negotiations between buyers and third-party providers. This flexibility is ideal for the unique requirements and complex agreements required by large enterprises
   
4. User-friendly design
   Cloud marketplaces provide ease of use, enabling buyers to discover and evaluate solutions quickly, aided by peer reviews, search functionality, and detailed product descriptions. A better experience for IT users means increased velocity for sourcing decisions
   
5. Diverse solution offerings
   From SaaS applications to infrastructure tools, marketplaces cater to a wide range of business needs such as standardized terms on offer and contract visibility

Benefits of cloud marketplaces for IT procurement professionals

Cloud marketplaces present several transformative benefits that align with the goals of modern IT procurement. Following are the top 3 benefits highlighted by procurement leaders in our survey:

1. Simplified and streamlined procurement processes
   A significant 57% of procurement professionals highlighted the ease of buying and deploying software as a major advantage of cloud marketplaces. These platforms consolidate procurement steps, from product/service discovery to billing, enabling a seamless purchasing experience. They also offer flexible billing options including pay-as-you-go, monthly, annual, or custom pricing that empower procurement leaders to manage their budgets effectively.
   An equal number of survey respondents also noted that cloud marketplaces accelerate the acquisition and deployment process, resulting in reduced time-to-market. This agility can prove to be vital for businesses.
   
2. Competitive pricing
   With transparent pricing and the availability of volume discounts, 43% of procurement leaders reported improved cost savings as a key benefit of using cloud marketplaces. These features empower businesses to optimize their spending and achieve better value for money.
   
3. Enhanced risk management
   Availability of pre-vetted suppliers and solutions on these marketplaces contributed to 43% of users feeling confident about risk mitigation. This level of assurance is particularly important for industries with stringent compliance requirements.

Challenges of adopting cloud marketplaces 

While the benefits are clear, leveraging cloud marketplaces is not without its challenges. 43% of the survey respondents stated that assessing suppliers through cloud marketplaces can be challenging due to limited visibility into detailed supplier performance metrics while 29% of them cited the lack of tailor-made solution options as a limitation, which may deter businesses with highly specific requirements.

While security measures taken by these cloud marketplaces are robust, 29% of the respondents are still cautious about the risks of handling sensitive data through third-party platforms. High transaction fees were also highlighted as a barrier to use these marketplaces by the survey respondents, especially for small and mid-sized (SMEs) businesses that need cost-efficient solutions.

Navigating the future of cloud marketplaces

Navigating the future of cloud marketplaces

Cloud marketplaces are redefining IT procurement, enabling organizations to operate with unprecedented agility, transparency, and efficiency. To unlock their full potential, procurement leaders should:

• Align procurement strategies with cloud marketplace capabilities to optimize committed spend and vendor relationships
  
• Engage in private offers for tailored agreements that maximize value
  
• Leverage training programs to equip teams with the skills to navigate marketplaces effectively

As businesses increasingly adopt cloud-native strategies, marketplaces will play an integral role in IT procurement operations, shaping the future of business success.

You can also view our virtual event, wherein our experts had a free-flowing discussion about the priorities of CPOs for 2025: 2025 CPO Objectives: Facing Challenges, Achieving Business Goals, and Future Aspirations

To discuss about how you can leverage cloud marketplaces for your IT procurement, please reach out to amy.fong@everestgrp.com, bhanushee.Malhotra@everestgrp.com, and amit.lad@everestgrp.com.

 AI

VIEW THE FULL REPORT 

November 14, 2024

Join this webinar featuring Everest Group Practice Director, Kriti Gupta, as she joins fellow industry experts and peers to explore the evolving hybrid and multi cloud landscape.

The panel of experts will dive into the state of hybrid cloud adoption, outline key challenges and strategic considerations, and demonstrate ways to address obstacles related to cloud platform migration, adoption of new technologies, and operational modernization.

Register

Kriti Gupta
Practice Director, Everest Group
Andy Haigh
Head of Cloud & Infrastructure Offering at DXC Technology
Greg Allen
Global AWS Practice Leader at DXC Technology
Mariano Luna
Global Head Solution Architecture – Strategic Enterprise Transformation at AWS

What are the consequences of the CrowdStrike outage, and how is it affecting licensing negotiations and other key enterprise concerns? Read on for an exploration of the evolving demands enterprises are making to protect themselves from similar future events, or get in touch if you’d like to speak to an analyst on this subject.

The CrowdStrike outage: What happened, and how it impacted the enterprises

In July 2024, a faulty update to CrowdStrike’s Falcon endpoint security software caused a global IT outage, impacting 8.5 million Windows devices with Blue Screen of Death (BSOD) errors and boot loops. Though less than 1% of Windows systems were affected, the disruption significantly impacted critical services, with Fortune 500 companies alone facing estimated losses of $5.4 billion.

Both CrowdStrike and Microsoft responded swiftly by rolling back the update and deploying teams for customer assistance. Microsoft engaged hundreds of engineers and worked with cloud providers such as AWS and Google Cloud to restore systems, while CrowdStrike provided immediate workarounds. This incident highlighted the inherent risks of software updates in interconnected environments and prompted many organizations to reassess their disaster recovery and incident response plans. The fallout has reinforced the need for more rigorous safeguards in managing system updates.

How have enterprise expectations and demands changed post-outage?

The outage has shifted the dynamics in CrowdStrike’s enterprise relationships, with organizations now pressing for more stringent terms in their contracts. Affected businesses, especially those in critical sectors such as finance and healthcare, are demanding stronger guarantees and more transparent SLAs (Service-Level Agreements) from CrowdStrike and other security vendors. These demands include:

1. Performance Guarantees and Penalty Clauses: Enterprises are increasingly requiring financial penalties for service disruptions. These clauses tie vendor compensation directly to the extent of operational impact caused by an outage, providing more robust protection for enterprises.
2. Greater Transparency and Accountability: Enterprises are insisting on clearer reporting mechanisms, with requirements for vendors to provide detailed logs and real-time insights into their systems’ status. This push for transparency allows businesses to better assess potential vulnerabilities and ensure quick remediation when issues arise.
3. Stronger Backup and Disaster Recovery Provisions: In response to the scale of the July outage, enterprises are seeking enhanced disaster recovery protocols. This includes ensuring that updates are thoroughly tested, and backout strategies are in place should something go wrong. Vendors may be required to offer more robust failover systems, ensuring minimal downtime in case of future issues.
4. More Customization in Contract Terms: The one-size-fits-all approach to security services is no longer sufficient for many enterprises. Businesses are now demanding tailored SLAs, where service commitments and penalties are aligned with the specific needs of the company. For example, highly regulated industries such as healthcare and finance are negotiating stricter SLAs with faster response and/or resolution times, along with higher penalties for non-compliance.

Contractual implications and licensing pricing: The expected changes

The July outage will likely lead to significant revisions in CrowdStrike’s contractual terms, specifically regarding licensing costs and service guarantees.

1. Price Reductions and Incentives: To retain clients, CrowdStrike has already offered discounts and incentives post-outage. This strategy, though temporarily cushioning the immediate impact, could lead to long-term pressures on its pricing structure. CrowdStrike is extending a Special Benefit Program, including complimentary add-on services such as an 18-month Diamond Support package at no additional cost, for select enterprises. These benefits, offered in collaboration with its technology partners, are designed to enhance enterprise retention and ensure continued customer satisfaction.
2. Stricter Liability Clauses and Indemnification Terms: Another major aspect of the fallout involves liability clauses within the contracts. Post-outage, many enterprises are scrutinizing the “limitation of liability” clauses in their agreements, seeking revisions that better protect them from revenue loss, brand damage, and operational disruptions. Businesses want CrowdStrike to assume greater responsibility for any future outages, particularly those affecting mission-critical systems.
3. Enhanced Service Level Agreements (SLAs): Enterprises are now seeking more robust SLAs that prioritize incident response along with uptime guarantees, as the July outage highlighted the need for more than just availability assurances. Enterprises are demanding SLAs with explicit performance metrics, faster incident resolution, and clear reporting of service health. To mitigate risks of future service disruptions, businesses are pushing for defined timelines for response and recovery, ensuring faster and more transparent action during critical service outages.

Near-future changes from CrowdStrike: Our predictions

1. Enhanced Testing and Certification of Updates: To restore confidence, CrowdStrike will likely invest more in the testing and certification of its updates. Enterprises will want reassurance that any future patches are thoroughly vetted, particularly those rolled out to critical infrastructure sectors.
2. Expansion of Cybersecurity Insurance Requirements: With the potential for future outages to trigger massive business interruption claims, companies may push for more comprehensive cyber insurance coverage as part of their vendor agreements. CrowdStrike could see an increase in the number of enterprises mandating cyber insurance coverage as a prerequisite for engagement.
3. Proactive Enterprise Communication and Real-Time Monitoring: Expect to see CrowdStrike rolling out more proactive monitoring and communication tools, allowing enterprises to track real-time status updates during any future incidents. This will enable enterprises to better assess their risk in real-time and take necessary precautions.

Conclusion: A significant shift in the vendor-customer dynamic

The July 2024 outage at CrowdStrike has been a wake-up call for both the company and its enterprises. For CrowdStrike, it underscored the need to enhance its operational resilience and communication with customers. For enterprises, it reinforced the importance of robust contract terms that protect their business interests in the event of a service failure. While some clients might explore alternatives, most are not immediately leaving CrowdStrike. Instead, they are demanding stronger Service Level Agreements (SLAs) with a focus on faster incident response, improved communication, and transparent service health reporting.

As a result, we expect contract negotiations to become more stringent, with customers demanding greater transparency, stringent SLAs, and real financial compensation in the event of future disruptions. This will reshape the cybersecurity industry, with greater emphasis on vendor accountability and operational resilience.

For questions about the consequences of the CrowdStrike incident for your business, contact Varnit Tyagi or Prahadeesh S. For insights into other contractual and enterprise impacts to expect in 2025, join our webinar Mapping the Next: Key Priorities for 2025.

Catch Everest Group Practice Director Pranati Dave as she joins fellow industry experts for a deep dive into the digital transformation reshaping financial services. Pranati unveils some of the game-changing insights in Everest Group’s recent research on Enterprise Maturity Models, offering a roadmap for staying ahead in a rapidly evolving landscape.

Catch the episode now

Pranati Dave
Practice Director, Everest Group

The enterprise landscape is on the cusp of a transformative era, with the emergence of gen AI (generative artificial intelligence).  

This technology, capable of creating entirely new content, promises to revolutionize countless workflows and redefine enterprise operations. 

Generative AI’s integration into platforms such as SAP, Oracle, Microsoft, Salesforce, and Pega is not merely a trend but a fundamental shift in how enterprises will innovate and operate. 

Reach out to discuss this topic in depth. 

The enterprise perspective 

Enterprises today face a critical decision when considering generative AI adoption: whether to opt for point solutions or a platform-led approach. This decision is crucial as any such investment demands substantial investment.  

While many enterprises initially gravitate towards point solutions, deploying isolated instances of large language models (LLMs) for specific features, this fragmented approach has limitations. Generative AI models are typically trained for broad, personal usage rather than enterprise-specific applications, which can limit their effectiveness in enterprise scenarios. 

On the other hand, platform-embedded solutions such as SAP Joule, Microsoft Copilot, Oracle Digital Assistant, Salesforce Einstein and others, are not only more relevant but also easier to scale adopt. Think of it as having a mini-AI (artificial intelligence) assistant built right into your familiar software, empowering you to leverage its power without needing extensive technical expertise. 

Our recent interactions with enterprises revealed that 70% of enterprises are prioritizing platform-embedded generative AI as a key strategy for digital transformation. This approach not only simplifies AI deployment, but also enhances productivity and operational efficiency, making it a compelling choice for forward-thinking organizations.  

By integrating Gen AI capabilities directly into existing enterprise platforms, enterprises are benefiting from:  

Integrated operational environment – Platform-embedded AI seamlessly integrates into existing business systems (enterprise resource planning (ERP), customer relationship management (CRM), human capital management (HCM), and others), ensuring consistent AI-driven insights across all functions. This integration reduces disruptions and fosters a cohesive operational environment, in which data flows effortlessly between applications, maximizing the utility of AI insights 

Enhanced data utilization – Embedded AI has access to enterprise-wide data, generating more accurate and holistic insights. It ensures seamless data exchange and integration across applications, making AI insights more valuable and actionable compared to point solutions limited to specific data sets 

Futureproofing innovation – Adopting platform-embedded AI aligns enterprises with the strategic roadmap of leading software providers, ensuring access to the latest AI advancements and innovations 

Higher cost efficiency – Platform-embedded AI leverages existing infrastructure, reducing the need for additional hardware, software, and technical expertise, offering more cost-effective AI capabilities. This consolidation leads to a lower total cost of ownership (TCO), by avoiding the costs associated with deploying and maintaining multiple standalone AI solutions 

Reduced complexity – Embedding generative AI within enterprise platforms simplifies deployment and usage. Unlike traditional AI implementations that require extensive setup, platform-embedded AI integrates into daily-use software, reducing the need for specialized technical expertise, accelerating implementation timelines, and minimizing workflow disruptions 

Despite the enthusiasm, enterprises adopting the platform-embedded gen AI approach should take care of challenges associated such as: 

Enterprise readiness – Integrating Gen AI into existing platforms can be complex and requires significant investment in technology and skills. Enterprises should conduct a thorough assessment of their current infrastructure and capabilities, and consider partnering with experienced AI vendors to streamline the integration process and mitigate risks 

Skill gaps – There is a high shortage of professionals within the data, AI, ERP and CRM sector, with these workers needing the skills to develop and maintain gen AI solutions. Enterprises need to invest in training and development programs to upskill existing employees or can consider hiring new resources and collaborating with educational institutions to build talent 

Ethical and regulatory compliance – Businesses must navigate the ethical implications of AI, such as bias and fairness, to build trust with their users. Establishing a dedicated ethics committee to oversee AI initiatives, performing regular audits and implementing bias detection algorithms are crucial ways to maintain fairness and transparency 

Data security and privacy – Platform-embedded AI relies on vast amounts of data, raising concerns about data security and privacy. Enterprises must adopt robust data security measures such as encryption, access controls, and regular security audits and ensure compliance with data protection regulations such as general data protection regulation (GDPR) and California consumer privacy act (CCPA) 

Change management and adoption – Ensuring that employees adapt to new AI-driven processes and tools can be difficult. Also, resistance to change and a lack of understanding of AI capabilities can impede successful adoption. Thus, implementing a comprehensive change management strategy that includes clear communication, training programs, and user support remains a must  

Adoption trends and future outlook 

While the adoption of platform-embedded generative AI is gaining momentum across various enterprises, solutions like Joule, Copilot, and Einstein are witnessing increased uptake, driven by their ability to enhance productivity, efficiency, and decision-making.  

Enterprises are now tailoring these AI functionalities to their specific needs, integrating them seamlessly with existing business processes within platforms such as SAP BTP. This customization ensures that AI solutions are closely aligned with unique workflows, improving decision-making and automating routine tasks. 

As businesses grow, the scalable infrastructure provided by platforms supports the expanding adoption of generative AI, allowing for increased data handling and more complex AI models. Future trends indicate even greater collaboration between AI developers and business units, driving innovation and creating new use cases. This will ensure that enterprises remain at the forefront of AI-driven transformation, leveraging advanced analytics and intuitive AI interfaces to maintain a competitive edge in their respective industries. 

By understanding and harnessing the trends within platform landscape, enterprises can position themselves at the forefront of AI-driven transformation, reaping the benefits of enhanced productivity, efficiency, and strategic decision-making.  

If you found this blog interesting, check out our recent blog focusing on What Recent Generative AI Updates And Announcements Signal For Some Industries | Blog – Everest Group (everestgrp.com) 

At Everest Group, we are closely tracking the generative AI evolution in enterprise platforms. To discuss this topic more with our team, please reach out Abhishek Mundra or Vinisha Choudhary.