A new report from Transforma Insights compares the capabilities of Amazon Web Services, Google and Microsoft across 11 technology areas, including AI, IoT and distributed ledger, and dozens of functions to determine which is best able to meet the needs of enterprises.
Transforma Insights today published its report ‘Hyperscaler Digital Transformation Peer Benchmarking 2021’. The report analyses the relative strengths of three ‘Hyperscalers’ in delivering Digital Transformation capabilities for enterprises. It features Amazon Web Services (AWS), Google, and Microsoft.
The report finds that Microsoft is the overall leading Hyperscaler. AWS is just behind overall, but with some specific key strengths. Google trails some distance behind those two in third place.
Using its universal rating system for vendors in Digital Transformation, Transforma Insights has analysed these three hyperscalers in their ability to address enterprise requirements for functional capabilities (e.g. hardware, software, systems integration) across eleven technology families (e.g. Artificial Intelligence, Internet of Things).
The chart below illustrates a summary of the findings. The ‘Maximum’ rating on the right-hand side is based on a theoretical organisation that is ‘Market Leading’ in every aspect of providing Digital Transformation across all technologies (with different weighting applied to each element of the value proposition and to each technology). Of course, no such company exists, but it provides a scale against which we can benchmark vendors. In total Microsoft has secured a rating of 52% compared to that theoretical maximum, AWS 42% and Google 25%.
Commenting on the findings, author Matt Hatton said: “AWS and Microsoft particularly perform well in ‘software products’, reflecting their heavy software focus and ability to deliver the off-the-shelf products covered in the category. They also rate high for integrated solutions (i.e. full products aimed at addressing specific client requirements), application development and specialist services. Where these three companies tend to fall down is on limited capabilities in delivering hardware, although they are market leaders in particular areas such as Human Machine Interface, and anything related to field services, systems integration or consultancy. This reflects their general unwillingness to venture to far into less scalable aspects of delivering Digital Transformation.”
Turning to ratings by technology, the chart below illustrates that all three score very well in Artificial Intelligence and Edge Computing. The hyperscalers represent three of the most innovative companies in those fields in the world. Both AWS and Microsoft also score strongly in IoT, although the relative maturity and diversity of requirements in that field mean that they do not score as high as they do for AI and Edge. Other segments are much more mixed. Microsoft is a market leader in RPA and aspects of HMI and there are some minor strong points in Autonomous Robotic Systems, Data Sharing, Distributed Ledger and Hyperconnectivity.
Hatton comments: “The message for enterprise adopters is that Microsoft overall is the lead vendor to support a Digital Transformation, but that hides quite a bit of diversity. For early adopters looking for cutting-edge solutions, AWS is generally a step or two ahead of Microsoft. However, when it comes to breadth of offering and mass-market delivery, Microsoft is the clear lead. Google has some particular niche capabilities, and is often favoured by developers, particularly in AI, although it seems unable to translate that into mass market adoption.”
The next few quarters will see further reports looking at the capabilities of other vendors against the same universal rating system. The next focus will be on major technology vendors, consultancies and systems integrators including Accenture, Atos, CGI, Cognizant, Deloitte, EY, Fujitsu, HCL, IBM, Infosys, KPMG, Oracle, SAP, TCS, Tech Mahindra, and Wipro.
The report is available to ‘Corporate’ level subscribers to Transforma Insights Advisory Service.
This report provides a benchmarking of a set of technology vendors in their capabilities in delivering enterprise digital transformation, using a framework that Transforma Insights has developed to assess the capabilities of every supplier involved with Digital Transformation. The bulk of the report provides our assessment of the capabilities of each of the vendors for each of the eleven technology families (Internet of Things, Artificial Intelligence, Hyperconnectivity, Human Machine Interface, Data Sharing, Autonomous Robotic Systems, 3D Printing & Additive Manufacturing, Distributed Ledger, Edge Computing, Product Lifecycle Management, and Robotic Process Automation) and between 5 and 14 functions per technology family. The latter includes hardware, software, services, consulting and various other elements. The rating system has three-tiers: ‘Emerging’, ‘Significant’ or ‘Market Leading’. The report includes also detailed notes on our views on each of the vendors for each of the technology families plus recommendations to enterprises on which vendor would be best placed to support, and for competitors on how to position relative to them.
Based on the rating of each vendor for each function in each technology family we are then able to rank the vendors, by technology, by role and overall for Digital Transformation. For the purposes of ranking the vendors, we apply a weighting for each function and for the eleven technology families relative to each other. The latter is based on the expected investment in that technology family over the next decade . These weightings allow us to score the overall capabilities of the vendors for Digital Transformation as a whole.
As well as the ratings, there are a number of broader intangible factors, such as how easy the company is to work with, the extent of its channels and the ability to deliver products and services in other adjacent areas. These are addressed in a further section of the report.
Transforma Insights is a leading research firm focused on the world of Digital Transformation (DX). Led by seasoned technology industry analysts we provide advice, recommendations and decision support tools for organisations seeking to understand how new technologies will change the markets in which they operate.