Companies in Germany Embrace Hybrid Clouds for Compliance and Control Purposes
German Enterprises Embrace Hybrid Cloud Solutions for Navigating Economic Uncertainties and Regulatory Complexity
In response to economic uncertainties, stringent regulatory requirements, and data security concerns, German enterprises are increasingly adopting hybrid cloud solutions. This shift, as highlighted in the 2025 ISG Provider Lens® report on Private/Hybrid Cloud – Data Center Services for Germany, provides German organizations with greater control over IT resources, enhanced compliance, and improved operational efficiency.
Key drivers for this shift include economic worries and the need for regulatory compliance. Hybrid cloud allows German enterprises to balance the scalability and agility of public clouds with the security and cost control of on-premises environments, providing a cost-effective and efficient IT infrastructure. Germany’s strict data protection laws encourage enterprises to move away from fully public clouds toward private or hybrid solutions that can ensure greater data residency, compliance, and security control.
The rapid growth of advanced hybrid cloud management platforms is another significant factor. The ISG Provider Lens report underscores the adoption of AI and edge computing as catalysts in these developments, with AI-powered platforms becoming foundational to hybrid cloud environments, facilitating edge computing and disaster recovery enhancements.
Many German enterprises are also reducing the physical space of their owned facilities and increasing reliance on colocation services to minimize costs, improve scalability, and optimize operational efficiency. The need for standardized infrastructure that meets the requirements of AI and emerging technologies is also highlighted to address complex integration and compliance risks.
The report evaluates the capabilities of 101 providers across seven quadrants: Managed Services - Large Accounts, Managed Services - Midmarket, Managed Hosting - Large Accounts, Managed Hosting - Midmarket, Colocation Services - Large Accounts, Colocation Services - Midmarket, and AI-Ready Infrastructure Consulting. Arvato Systems, Deutsche Telekom (T Business), Kyndryl, and q.beyond are named as Leaders in three quadrants each. Enterprises such as Persistent Systems, a global ISG CX Star Performer for 2025 in the area of customer experience among private/hybrid cloud and data center service providers, also feature prominently.
In addition, the report highlights the rapid growth of emerging players such as CONVOTIS, named as a Rising Star in two quadrants, and Grass-Merkur, LTIMindtree, and NorthC Datacenters, recognized as Rising Stars in one quadrant each.
For more information about ISG Provider Lens research, visit [specific webpage]. ISG is known for its proprietary market data, in-depth knowledge of provider ecosystems, and expertise in helping clients maximize the value of their technology investments.
As German organizations rationalize budgets and optimize IT costs amid economic uncertainty, CTOs face challenges in justifying expenditures and managing the complexities of hybrid models. Customized versions of the 2025 ISG Provider Lens Private/Hybrid Cloud - Data Center Services report for Germany are available from Claranet, Grass-Merkur, IONOS, noris network, PFALZKOM, q.beyond, and T-Systems.
German enterprises are also exploring the potential of generative AI to transform their business processes and drive innovation. For the full report, subscribers or one-time purchasers can visit [specific webpage].
Contact Philipp Jaensch or Matthias Longo for inquiries related to ISG.
[1] ISG Provider Lens Private/Hybrid Cloud - Data Center Services for Germany, 2025 [2] ISG Provider Lens Quadrant research series [3] Data Protection in Germany: A Comprehensive Guide for Enterprises [4] Navigating the Hybrid Cloud: A Guide for German Enterprises in 2025 and Beyond
- In response to economic uncertainties, regulatory complexity, and data security concerns, German enterprises are turning to hybrid cloud solutions for greater control over IT resources, enhanced compliance, and improved operational efficiency.
- Hybrid cloud solutions allow German enterprises to balance the scalability and agility of public clouds with the security and cost control of on-premises environments, providing a cost-effective and efficient IT infrastructure.
- The ISG Provider Lens report reveals the adoption of AI and edge computing as catalysts in the development of hybrid cloud management platforms, with AI-powered systems becoming foundational to hybrid cloud environments.
- As German enterprises seek to minimize costs, improve scalability, and optimize operational efficiency, many are reducing the physical space of their owned facilities and increasing reliance on colocation services.
- The need for standardized infrastructure that meets the requirements of AI and emerging technologies is highlighted to address complex integration and compliance risks.
- For German enterprises exploring the potential of generative AI to transform their business processes and drive innovation, the full report is available for subscribers or one-time purchasers.
