AI adoption, data modernization, sovereign data requirements reshape cloud services landscape, ISG Provider Lens report says
European enterprises are rapidly advancing cloud strategies, often using AI tools and services from the expanding Google Cloud ecosystem, 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 Google Cloud Partner Ecosystem report for Europe finds that AI capabilities are helping enterprises use the cloud to enhance operational efficiency and strategic decision-making. For many companies, the AI-powered tools and services in Google Cloud's broad technology suite, especially agentic AI offerings, play a major role in these efforts.
"European enterprises are adopting agentic AI technologies to extend their capacity to meet the demands of increasingly complex processes," said Dorotea Baljevic, director and EMEA industrial AI lead at ISG. "This strategy positions them for enhanced growth opportunities and innovation."
The focus on using agentic AI to optimize key software development tasks, including code generation and testing, is increasing among European enterprises, the report says. Businesses are leveraging agentic AI for efficient inventory management and personalized product recommendations, driving overall business growth and operational excellence across various industries.
There is a growing emphasis on responsible AI in Europe to reduce bias and enhance data security, ISG says. Google Cloud ecosystem providers are supporting these efforts by strengthening AI practices and cybersecurity measures, enabling businesses to confidently navigate the decision-making functions of AI systems while protecting sensitive information across organizational boundaries. This focus ensures ethical AI integration and protects enterprise data against emerging security threats.
European enterprises are also adopting data modernization strategies to ensure high-quality, accessible data, which is crucial for agentic AI success, the report says. By migrating legacy data to cloud platforms, businesses gain access to tools that can improve insights and decision-making. Google Cloud ecosystem providers offer expertise in integrating advanced data management, analytics and AI into unified platforms, allowing enterprises to streamline operations and enhance business intelligence.
Demand for cloud sovereignty solutions is surging in Europe as enterprises seek to comply with stringent privacy regulations and maintain control over their data systems, ISG says. Enterprises are implementing isolated servers in cloud data centers to address geopolitical uncertainties. Google Cloud ecosystem providers support these efforts by delivering services that ensure independent management of cloud environments, which enhances data security.
"Enterprises are adopting AI and data strategies to enhance productivity while ensuring security and compliance," said Mark Purdy, principal analyst, ISG Provider Lens Research, and the lead author of the report. "These initiatives foster growth and operational resilience."
The report also explores other European cloud trends, including the growing adoption of hybrid and multicloud architectures for enhanced flexibility and security and an increasing focus on FinOps for cloud cost optimization and strategic financial management.
For more insights into the cloud challenges faced by European enterprises, along with ISG's advice for addressing them, see the ISG Provider Lens Focal Points briefing here.
The 2025 ISG Provider Lens Google Cloud Partner Ecosystem report for Europe evaluates the capabilities of 37 providers across four quadrants: Google Cloud Professional Services (Consulting and Migration), Google Cloud Managed Services, Google Cloud Enterprise Data Infrastructure Services and Google Cloud GenAI and AI Services.
The report names Accenture, HCLTech, TCS and Wipro as Leaders in all four quadrants. Cognizant, GFT and NTT DATA are named as Leaders in three quadrants each. Atos, LTIMindtree, Quantiphi and T-Systems are named as Leaders in two quadrants each, and DXC Technology, PCG and Telana are named as Leaders in one quadrant each.
In addition, Telana is named as a Rising Star a company with a "promising portfolio" and "high future potential" by ISG's definition in two quadrants. SFEIR is named as a Rising Star in one quadrant.
In the area of customer experience, Persistent Systems is named the global ISG CX Star Performer for 2025 among Google Cloud ecosystem providers. Persistent Systems 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.
Customized versions of the report are available from Telana.
The 2025 ISG Provider Lens Google Cloud Partner Ecosystem report for Europe 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.
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Press Contacts:
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Philipp Jaensch, ISG
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