New and established industries turn to Oracle’s application and infrastructure portfolio, proven security and compliance capabilities, ISG Provider Lens™ report says

Enterprises in the U.S. are increasingly using cloud-based Oracle applications and infrastructure as the company competes with the major hyperscale cloud operators, 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 2024 ISG Provider Lens™ Oracle Cloud and Technology Ecosystem report for the U.S. finds the U.S. public cloud market grew rapidly in 2024 as more companies in all sectors began using as-a-service implementations of software (SaaS), platforms (PaaS) and infrastructure (IaaS). Cloud adoption in the U.S. is shaped by extensive regulatory requirements, the size and complexity of large enterprises and industry-specific needs. Oracle’s ability to offer both infrastructure and a broad set of applications in the cloud gives it unique strength in this market.

“Oracle is rapidly gaining ground in the U.S. cloud market against both enterprise application providers and hyperscalers,” said Bill Huber, partner, digital platforms and solutions, for ISG. “Its vast provider ecosystem is essential to that growth. Additionally, we’ve seen Oracle offering innovative cost alternatives that will be very attractive to clients seeking cost optimization solutions.”

Many U.S. enterprises in high-growth industries such as technology are turning to Oracle offerings, especially Oracle Cloud Infrastructure (OCI), helping turn the company into the fourth major cloud provider after AWS, Microsoft Azure and Google Cloud, ISG says. Meanwhile, established industries with stringent compliance, security and data residency requirements, such as financial services, the public sector and telecommunications, remain strongholds for Oracle in the U.S. Both global system integrators and emerging specialist providers enable enterprise Oracle adoption, expanding the company’s partner ecosystem.

OCI is driving much of Oracle’s cloud growth in the U.S., the report says. U.S. companies and providers strongly prefer to run Oracle applications on OCI and increasingly use it for third-party and custom cloud-native applications as well. OCI has cost advantages over rivals, especially for foundational services such as computing, storage and networking, while customers also find value in its security features and deployment options. OCI is also where Oracle is making its biggest investments in cloud-based AI, ISG says.

Cloud complexity and costs, surging adoption of SaaS and the critical need to migrate legacy Oracle platforms to the cloud are expanding the U.S. market for Oracle consulting and advisory services, ISG says. Companies embarking on Oracle cloud projects increasingly partner with providers to ensure strong governance. Demand for managed services is also growing, especially for engagements where success is measured in outcomes.

“U.S. enterprises seeking Oracle managed services have many providers to choose from,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “They need to thoroughly evaluate offerings to avoid hidden costs and make sure providers’ strengths align with business objectives.”

The report also explores other trends affecting Oracle cloud users in the U.S., including the rising demand for Oracle implementation services and the impact of Oracle Customer Success Services, recently formed through the merger of several Oracle service teams.

For more insights into Oracle cloud challenges faced by U.S. enterprises, including migrating from on-premises to cloud-based Oracle implementations and deciding what functions to move to OCI, plus ISG’s advice on these issues, see the ISG Provider Lens™ Focal Points briefing here.

The 2024 ISG Provider Lens™ Oracle Cloud and Technology Ecosystem report for the U.S. evaluates the capabilities of 30 providers across four quadrants: Consulting and Advisory Services, Implementation and Integration Services, Managed Services and OCI Solutions and Capabilities.

The report names Accenture, Cognizant, Deloitte, HCLTech, Infosys, LTIMindtree, TCS and Wipro as Leaders in all four quadrants. It names Capgemini, KPMG and PwC as Leaders in three quadrants each. Centroid is named as a Leader in one quadrant.

In addition, Centroid, Kyndryl and Tech Mahindra are named 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, Capgemini is named the global ISG CX Star Performer for 2024 among Oracle Cloud and Technology Ecosystem providers. Capgemini 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.

A customized version of the report is available from Cognizant.

The 2024 ISG Provider Lens™ Oracle Cloud and Technology Ecosystem report for the U.S. 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.

Press Contacts: Will Thoretz, ISG +1 203 517 3119 will.thoretz@isg-one.com Julianna Sheridan, Matter Communications for ISG +1 978-518-4520 isg@matternow.com

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