Azure OpenAI Services Could Give Swiss Firms an AI Edge

Switzerland could further strengthen its reputation as an AI leader following Microsoft’s announced plans to add Azure OpenAI services to Swiss data centers, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2024 ISG Provider Lens™ Microsoft Cloud Ecosystem report for Switzerland finds that the addition of Azure OpenAI services to data centers in Zürich and Geneva could boost Switzerland’s recognition as a hub for AI research and development. This local presence enables Swiss enterprises to meet regulatory requirements while rapidly deploying AI-based solutions, the ISG report says.

“More and more IT service providers are adapting their offerings to the specific needs of AI and GenAI while optimizing processes and workflows,” said Uwe Ladwig, managing director, ISG Switzerland. “This unlocks opportunities for Swiss companies to increase efficiency and gain decisive competitive advantages.”

Despite the increasing use of cloud services, the Swiss market is not yet approaching a saturation point. On the contrary, according to the ISG report, new or adapted fields of application and solutions are fostering long-term growth in this sector. In fact, 2024 will see rapidly increased demand for cloud services, with networking increasing significantly, the report says.

As a pioneer in the area, Microsoft is establishing standards by integrating AI and cloud technologies into products such as Azure, Microsoft 365 and Dynamics 365, the ISG report says. The progressive introduction of GenAI has catalyzed groundbreaking solutions and fundamentally changed the Microsoft ecosystem, the report says.

The launch of Microsoft’s Copilot marks an historic turning point for the company and underlines its ambition to consolidate and commercialize its leading position in GenAI, the ISG report says. An impressive example is GitHub’s year-over-year revenue growth of more than 40 percent, primarily due to the popularity of GitHub Copilot, the world’s leading AI development tool, the report says.

“Microsoft’s focus on AI is attracting considerable interest in Switzerland,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Those Swiss enterprises that are just beginning their journey are exploring essential functions and services of Microsoft 365 and Azure to achieve significant success and added value.”

The report also examines Microsoft’s announcement of extensive financial investments in expanding AI and cloud infrastructures.

For more insights into the Microsoft cloud ecosystem challenges facing enterprises in Switzerland, such as ensuring security and compliance and enabling cross-platform integration, along with ISG’s advice for addressing them, see the ISG Provider Lens™ Focal Points briefing here.

The 2024 ISG Provider Lens™ Microsoft Cloud Ecosystem report for Switzerland evaluates the capabilities of 45 providers across five quadrants: Managed Services for Azure, Microsoft 365 Services, SAP on Azure Services, Power Platform Services and Generative AI Services for the Microsoft Clouds.

The report names Swisscom as a Leader in all five quadrants, while SoftwareONE is named as a Leader in four quadrants. Aveniq and ELCA/EveryWare are named as Leaders in three quadrants each, while Data One, isolutions, Kyndryl, MDW and T-Systems are named as Leaders in two quadrants each. Accenture & Avanade, Adesso, All for One Group, Allgeier, Ambit Group, Arvato Systems, Baggenstos, Bechtle. BitHawk, Capgemini, Devoteam M Cloud, DIGITALL, Eviden (an Atos Business), PwC, UMB and Wipro are named as Leaders in one quadrant each.

In addition, Kyndryl is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants, while Bechtle, BitHawk and Eviden (an Atos Business) are named as Rising Stars in one quadrant each.

In the area of customer experience, Bechtle is named the global ISG CX Star Performer for 2024 among Microsoft cloud ecosystem partners. Bechtle 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 Bechtle and Swisscom.

The 2024 ISG Provider Lens™ Microsoft Cloud Ecosystem report for Switzerland 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, 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 (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI and automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

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