ISG Provider Lens™ Google Cloud Partner Ecosystem - Google Cloud Managed Services - U.S. 2025

Ecosystem partners drive enterprise value by leveraging Google Cloud AI, data and industry expertise

In 2025, the Google Cloud partner ecosystem is driving significant enterprise value within the U.S. by leveraging Google Cloud’s strengths in AI, data modernization and analytics, security, and open, scalable infrastructure. Global system integrators (GSIs) with a strong U.S. presence collaborate with Google Cloud to deliver customized solutions and expert services (consulting, implementation, managed services, enterprise data infrastructure, and generative AI [GenAI] and AI services). This collaboration helps enterprises navigate complexity, accelerate cloud adoption and modernization, harness the transformative power of GenAI with platforms such as Gemini and Vertex AI, and achieve tangible business outcomes in an increasingly hybrid cloud and multicloud environment.

U.S. enterprises are actively responding to several major trends influencing their technology investments and cloud service consumption. These trends include embracing hybrid cloud and multicloud strategies for flexibility and  optimization; promoting data democratization to empower employees; accelerating cloud-native development to enhance agility; capitalizing on the transformative potential of agentic AI, GenAI, AI and ML, which are currently the top drivers for increasing cloud budgets; and navigating the critical demands related to data security, governance and sovereignty. Consumption patterns show a clear shift toward services that address these needs, extending beyond
basic infrastructure. Google Cloud’s portfolio, including Gemini, Vertex AI, BigQuery, AIoptimized infrastructure (TPUs, GPUs), GKE and its comprehensive security suite (Mandiant, Chronicle, Security Command Center), directly caters to the needs of these U.S. enterprises. Providers assist U.S. companies, especially in regulated sectors such as finance and healthcare, with critical migrations and data modernization projects, prioritizing security and compliance. They are also developing deep industry expertise and acquiring specialized certifications to differentiate their offerings.

The key trends observed in the market are as follows:

Intensifying focus on GenAI and agentic AI via Google Agentspace: GenAI and AI services are rapidly growing in the U.S. As providers help enterprises adopt and scale AI, they guide clients through the AI Journey to assist, augment and transform their operations using Google’s AI stack, which includes Gemini models, the Vertex AI  platform (Model Garden, Agent Builder, MLOps) and AI-optimized infrastructure such as TPUs and GPUs.

Developing AI agents using platforms such as Agentspace is a key trend, with providers building custom agents and industry solutions. Responsible AI practices remain a critical focus for deployments in the U.S. Driven significantly by major announcements at Google Cloud Next ‘25, providers are heavily investing in GenAI capabilities. The introduction of the Gemini 2.5 family (Pro and Flash), advancements in multimodal models (Imagen 3, Veo 2, Chirp 3, Lyria), the AI hypercomputer architecture featuring seventh-generation Ironwood TPUs and the enterprise focus on AI agents create immense opportunities for enhanced AI capabilities, intelligent automation, innovation across industries and the creation of new tools and platforms for developers and enterprises. Industry research confirms that AI is the primary driver for increasing cloud budgets. In response, U.S. providers are developing sophisticated solutions and services on the Vertex AI platform to help clients deploy GenAI responsibly and effectively, transforming operations, CX and product innovation.

Transforming data management for enterprises: There is a strong trend toward using AI, including Google’s Gemini models, which are integrated into migration tools and partner solutions to automate complex tasks such as code translation, schema mapping, data validation and dependency analysis. Enterprises are moving away from siloed data systems toward unified platforms that handle diverse data types and workloads. This shift is leaning toward more autonomous data management, where AI assists with tasks such as performance tuning, cost optimization recommendations, anomaly detection in pipelines and even natural language querying. Tools such as Dataplex and sovereign cloud solutions are gaining traction as they provide a comprehensive method to discover, manage, secure and govern data across BigQuery, Cloud Storage and databases.

Increasing Google Cloud VMware Engine (GCVE) adoption amid VMware licensing changes: The market is  witnessing a substantial increase in enterprise adoption of GCVE. This trend is fueled by market disruption following
Broadcom’s acquisition of VMware and the subsequent overhaul of its licensing model. GCVE presents a compelling, stable and cost-efficient alternative for U.S. enterprises impacted by these changes. It allows organizations to migrate VMware environments to Google Cloud rapidly, maintain operational consistency using familiar tools, avoid immediate hardware refreshes and integrate with Google Cloud’s native services. Providers are capitalizing on this by building robust GCVE migration practices, further validated by Broadcom’s significant migration of VMware workloads to Google Cloud.

Migrating Oracle workloads on Google Cloud: Data modernization is essential for AI readiness and remains a core focus for organizations. Within this context, migrating Oracle workloads to the Google Cloud is a prominent trend that is gaining significant traction. The groundbreaking multicloud partnership between Oracle and Google Cloud,  announced in June 2024, dramatically accelerates this trend. Oracle Database@Google Cloud allows the Oracle Exadata Database Service and Autonomous Database to run directly within Google Cloud data centers on OCI  hardware, providing customers direct, low-latency access to these managed Oracle services integrated within their Google Cloud environment. Oracle interconnect for Google Cloud and simplified procurement of Oracle services  directly through Google Cloud Marketplace are other enablers of this trend. Providers are actively helping U.S. clients leverage these options to modernize while optimizing costs, including utilizing Bring Your Own License (BYOL) where applicable.

Defining complex Google Cloud modernizations with data, AI and cloud-native technologies: As multicloud implementations become increasingly prevalent in the U.S., providers offering thorough readiness, TCO and ROI assessments, clear road maps, optimal architecture design and strategic migration planning are increasingly sought-after. GSIs play a crucial role by providing essential advisory services to effectively design, secure and manage these complex environments. Key modernization trends on Google Cloud fueling this demand include moving beyond simple
lift-and-shift to replatforming applications onto containers using Google Kubernetes Engine (GKE) or rearchitecting for cloud-native services such as Cloud Run. There is also a significant focus on migrating and modernizing legacy data warehouses (such as Teradata and Netezza) and databases (including SAP HANA and Oracle) to scalable platforms such as BigQuery and Cloud SQL/Alloy DB to enable advanced AI and analytics. Organizations are also increasingly leveraging AI-driven tools for assessment, planning and accelerating these complex transitions.

Optimizing cloud operations with automation, FinOps and unified management: Managed service providers increasingly leverage automation and AIOps to provide proactive monitoring, predictive maintenance, automated incident response and continuous optimization, reducing manual effort and improving reliability. As cloud spending grows, FinOps becomes critical. Managed services providers offer expertise and tools for cost monitoring, analysis, optimization, budgeting, forecasting and implementing showback and chargeback models, helping clients maximize the value of their cloud investments. The complexity of hybrid cloud and multicloud environments necessitates service providers skilled in integrating, managing and securing workloads across diverse platforms, ensuring consistent policies and operational control. Centralized discovery and management tools are key enablers. Integration with enterprise ITSM platforms like ServiceNow streamlines workflows, provides IT teams with a more unified view and control plane and manages cloud resource alerts and service requests.

Increasing demand for advanced AI expertise: Deep expertise has become crucial for integrating advanced multimodal AI capabilities, multiagent systems, Google Agentspace and open protocols such as Agent2Agent into core enterprise processes for rich insights and interactions. Partners possessing advanced GenAI expertise are essential for architecting, building and managing next-generation AI transformations on Google Cloud. Developing highly  specialized, vertical-specific AI solutions (e.g., for finance, healthcare, manufacturing) that require deep domain knowledge combined with AI proficiency is a key growth area.

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