Companies embrace hybrid and sovereign clouds for compliance, AI deployments, digital transformation, ISG Provider Lens report says
Enterprises in France are quickly updating their cloud strategies to support new AI tools and data sovereignty requirements, 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 Private/Hybrid Cloud Data Center Services report for France finds that growing enterprise investment in AI-ready infrastructure is reshaping the country's hybrid cloud market. Companies are adopting sovereign cloud solutions and high-performance data centers to comply with regulations, optimize AI operations and become more sustainable.
"The growing need to support AI while meeting data sovereignty requirements has forced French companies to innovate," said Julien Escribe, partner and managing director, SEMEA, ISG. "France's efforts to become globally competitive in AI have attracted substantial international investments in the country, amplifying this trend."
French enterprises increasingly use AIOps, a suite of AI tools designed to improve IT operations, to enhance service delivery, the report says. These implementations are often intended to enhance knowledge searches and incident resolution enabled by GenAI. AIOps with GenAI is bolstering data analysts' productivity, empowering them to address complex requests, facilitate automation and improve performance across large-scale IT infrastructures. Many enterprises are also incorporating FinOps to optimize cloud spending and make operations more efficient.
In the midmarket segment, companies are embracing standardized, automated service models enhanced with AIOps, ISG says. With security, governance and compliance as focal points, providers are partnering with regional data hosts to build tailored solutions. This approach ensures streamlined operations and addresses diverse business challenges and requirements.
French firms are also integrating GenAI solutions within private cloud hosting services to support data sovereignty, the report says. This approach ensures privacy and keeps data local, allowing for secure custom AI development. By meeting sovereignty requirements, enterprises can make advancements in AI and data protection within compliant managed hosting environments.
French enterprises are seeking AI-capable, high-performance data centers to maintain global competitiveness, ISG says. To meet this demand, providers offer advanced solutions including liquid cooling and SDN technologies. France's nuclear energy supplies ensure efficiency, scalability and alignment with zero-carbon objectives.
"French enterprises are prioritizing hybrid cloud integration for scalability and flexibility," said Pedro L. Bicudo Maschio, distinguished analyst, ISG, and lead author of the report. "To support these goals, providers are delivering tailored solutions based on GenAI and advanced compliance measures."
The report also explores other trends, including investments in GPU-as-a-service and growing demand for extraction, transformation and loading (ETL) pipelines to support scalable AI and large language model (LLM) deployments.
For more insights into the cloud-related challenges faced by French enterprises, along with ISG's advice for addressing them, see the ISG Provider Lens Focal Points briefing here.
The 2025 ISG Provider Lens Private/Hybrid Cloud Data Center Services report for France evaluates the capabilities of 54 providers across five quadrants: Managed Services Large Accounts, Managed Services Midmarket, Managed Hosting, Colocation Services and AI-Ready Infrastructure Consulting.
The report names Orange Business as a Leader in five quadrants. It names Kyndryl and Sopra Steria as Leaders in three quadrants each. Accenture, Capgemini, Cloud Temple and Wipro are named as Leaders in two quadrants each. Atos, CHEOPS TECHNOLOGY, Claranet, Cogent, Cognizant, DATA4, Digital Realty, DXC Technology, Ecritel, Equinix, OVHcloud, ScaleSquad, Scaleway, SCC and TCS are named as Leaders in one quadrant each.
In addition, Constellation and OPCORE are recognized 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, Persistent Systems is named the global ISG CX Star Performer for 2025 among private/hybrid cloud and data center service 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.
The 2025 ISG Provider Lens Private/Hybrid Cloud Data Center Services report for France 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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