Executive Summary: ISG Provider Lens™ AWS Ecosystem Partners - APAC 2024

The individual quadrant reports are available at:

ISG Provider Lens™ AWS Ecosystem Partners - AWS Data Analytics, AI and ML - APAC 2024

ISG Provider Lens™ AWS Ecosystem Partners - AWS Managed Services - APAC 2024

ISG Provider Lens™ AWS Ecosystem Partners - AWS Professional Services - APAC 2024

ISG Provider Lens™ AWS Ecosystem Partners - AWS SAP Workloads - APAC 2024

Expanding AWS footprint and provider capabilities drives innovation and delivers business outcomes

Rapid economic growth in the APAC region in recent decades has driven the demand for efficient and scalable  business solutions. This region is witnessing a rise in managed services, increased containerisation and adoption of serverless technologies, and a growing emphasis on data analytics and AI. The APAC region comprises countries with varying maturity levels and unique business and regulatory requirements. AWS recognises this diversity and has expanded its regional presence through Availability Zones, Edge Locations and Regional Edge Locations. The company has cultivated a strong partner ecosystem, fostering collaboration with service providers and system integrators (SIs). Thus, AWS and other providers focus on expanding their reach, capabilities and capacity to align with region-specific  requirements. APAC is also home to providers geographically focused on one or two countries and those specialised in a single solution set.

Market growth and demand: The APAC region is experiencing significant growth in cloud adoption, driven by increasing digitalisation across industries such as manufacturing, finance, healthcare and the public sector. This trend has contributed to the demand for AWS-related professional and managed services, such as cloud migration services. Digitalisation is also driving application modernisation and use cases. Additionally, service providers are increasingly adopting profit-sharing models for outcome-based pricing.

Largest talent pool: Apart from being the most populous region, APAC also boasts a large talent pool specialised in cloud, SAP, and AI and ML. While the initial development of this talent pool was driven by cost arbitrage for large global corporations and SIs, it now serves as a model to drive rapid learning and innovation at scale.

Competitive environment: The APAC region is experiencing a surge in demand for cloud services, driven by digital transformation initiatives and increased adoption of cloudnative technologies. This trend has intensified competition among service providers and SIs.

Rapidly evolving ecosystem and specialisation: The AWS ecosystem in APAC is highly competitive, featuring a blend of global, regional and local service providers. Global SIs maintain a strong market presence, leveraging their global experience and local resources. However, regional and local players are gaining traction by offering specialised solutions tailored to specific industries or markets. 

Data analytics and ML: Service providers are building solutions specialising in data analytics and ML by leveraging AWS tools and technologies. They are building industryspecific solutions and workflows using the AWS platform for data ingestion, processing, analysis and model development. These solutions help customers extract valuable insights from their data and drive data-driven decision-making.

SAP modernisation: SAP has a substantial presence in APAC across key industry segments such as manufacturing, financial services and the public sector. These industries are major contributors to the region’s economy. SAP is encouraging its customers running SAP ERP Central Component (ECC) or S/4 HANA on premises systems to migrate to the cloud by December 31, 2027. This deadline for SAP’s RISE initiative has created a significant opportunity for service providers to transition their customers to the cloud, with AWS being one of the three certified solutions.  Providers with strong SAP practice, skillsets and accelerators are synergising their competence with AWS SAP tools and techniques to accelerate customer migration to SAP RISE.

Managed services: The AWS managed services market is anticipated to grow significantly. Automation and AI integration will majorly affect future managed services offerings. A few of the trends in managed services are listed as follows:

• Concerns over data privacy and evolving regulations are driving the need for robust security solutions and  compliance frameworks. Providers are developing in-depth cybersecurity practices to enhance security measures.
• Cloud spending optimisation is a significant concern for enterprises. Managed service providers (MSPs) can help identify and eliminate inefficiencies and implement cost-saving strategies.
• Automation and DevOps: Enterprises embrace automation and DevOps practices to streamline their AWS operations. These practices include using tools such as continuous integration and continuous deployment (CI/CD) pipelines and infrastructure as code (IaC).
• Hybrid and multicloud adoption: Many organisations are adopting hybrid or multicloud strategies to leverage the benefits of different platforms and avoid vendor lock-in.
• Generative AI (GenAI): AI is integrated into managed services for workload management, anomaly detection and security enhancements.

Professional services: Professional services are gaining momentum across regional enterprises as they seek a one-stop-shop partner experience with local providers. A few key trends gaining importance in the market are listed as follows:

• Legacy system modernisation: Migrating to microservices architectures and containerised environments using AWS
  Elastic Kubernetes Service (EKS) and AWS App2Container
• Advanced data analytics and ML: Leveraging Amazon SageMaker and AWS Data Lakes
• Serverless computing: Adopting AWS Lambda and AWS Fargate for scalable and cost-effective solutions
• Platform agnosticism: Focusing on platformagnostic solutions due to similar offerings across cloud providers
• Evolving skillsets: Growing demand for multiskilled professionals with expertise in development, DevOps and cloud
  environments
• Segmented modernisation: Analysing modernisation efforts into specific segments for targeted strategies
• Industry-specific solutions: Offering tailored approaches to address the unique needs of different sectors

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