Enterprises in the Nordic region are looking to cloud and data centre service providers to help them manage their move to hybrid IT and multi-cloud environments, according to a new report by US researcher Information Services Group (ISG). The 2020 ISG Provider Lens Next-Gen Private/Hybrid Cloud – Data Center Services & Solutions Report for the Nordics finds hybrid and multi-cloud setups becoming the new normal in the Nordic region. More than half of all companies in the Nordics are planning to migrate their applications to a multi-cloud model, the report says. But they are slower to adopt hyperconverged packages.

The report sees substantial growth in IT outsourcing deals in the Nordics in the next two to three years, with scalability, cost reduction goals and cloud adoption driving demand. Nordic enterprises are also exploring ways that service providers’ artificial intelligence and automation platforms can improve their IT operations. At the same time, Nordic companies are using service providers to manage their cloud services. “With the advent of complex and advanced technologies, companies are no longer able to handle all aspects of IT transformation on their own,” said Jan Erik Aase, director and global leader, ISG Provider Lens Research. “Companies outsource all or part of their IT and cloud management to save costs, to focus on their core businesses and to access innovative services from providers.”

Meanwhile, in the colocation space, the report finds that hyperscalers are driving growth in this segment in the Nordics. Colocation service providers can help companies comply with regulations, and ensure high reliability, scalability and flexibility in data centre operations, the report says.

Nordic companies also are focused on physical security of their systems, and the data centre market in the region is likely to witness an increased use of robot monitoring systems, including sensors and video surveillance, the report adds.

The report also sees growing demand for managed hosting services in the Nordics in the next two to three years. With enterprises expanding their businesses globally, their need for space and utilities has increased significantly. Hosting services providers associated with cloud providers and hardware vendors are offering exclusive services to clients. The report also sees Nordic enterprises exploring hyperconverged infrastructure services, although adoption is low compared with other parts of Europe. Nordic enterprises are looking for ways to reduce power, space and cooling costs, leading to a growing interest in hyperconverged infrastructure.