Enterprises in the U.S. are evolving their cloud strategies well beyond basic infrastructure, increasingly embracing Google Cloud—and its expansive partner ecosystem—as a springboard for AI-driven innovation, data modernization, and multicloud agility. That’s the big takeaway from the newly released 2025 ISG Provider Lens® Google Cloud Partner Ecosystem report by tech advisory firm Information Services Group (ISG).
With cloud budgets swelling—thanks largely to the explosive growth of generative and agentic AI—U.S. companies are turning to service providers to help harness Google Cloud’s strengths in AI, analytics, security, and scalable infrastructure. It’s a move that’s less about lift-and-shift and more about lifting intelligence.
“Rapidly growing use of GenAI and agentic AI is the biggest driver of increasing cloud budgets at U.S. enterprises,” said Bill Huber, ISG partner for digital platforms and solutions.
AI Is Eating the Cloud
The report underscores just how central AI adoption has become to enterprise cloud strategy. Google Cloud’s stack—featuring tools like Gemini, Vertex AI, and Agentspace—is now being used not just for experimental models but for industry-grade AI agents, data pipelines, and real-time analytics. From schema mapping and code translation to autonomous data tuning, AI isn’t a sidekick anymore—it’s running the show.
Partners are guiding this shift. Whether it’s using Gemini to streamline massive data projects or leveraging Google Kubernetes Engine (GKE) for app modernization, service providers have become the connective tissue between AI hype and business outcomes.
Replatforming, Not Just Migrating
Forget the days of simplistic “lift and shift” migrations. The ISG report shows that enterprises are now replatforming apps into containers, adopting cloud-native architectures, and integrating FinOps frameworks to monitor and optimize costs—a major concern in the age of sprawling multicloud environments.
That’s where Google’s value proposition is resonating: a tightly integrated AI-infused cloud, wrapped in security and cost-optimization tools, deployed with the help of highly specialized partners.
VMware Shake-Up Spurs Shift to Google Cloud
In the wake of Broadcom’s 2023 acquisition of VMware, many U.S. enterprises are turning to Google Cloud VMware Engine (GCVE) as a stable and cost-efficient alternative to continue running VMware workloads without breaking the bank or rewriting their infrastructure playbook. Service providers are rapidly scaling GCVE practices in response.
Who’s Leading the Google Cloud Race?
The ISG report evaluated 35 providers across four quadrants:
- Google Cloud Professional Services (Consulting & Migration)
- Google Cloud Managed Services
- Google Cloud Enterprise Data Infrastructure
- Google Cloud GenAI & AI Services
11 providers emerged as Leaders across all quadrants, including Accenture, Deloitte, Capgemini, Cognizant, HCLTech, TCS, LTIMindtree, Wipro, and Tech Mahindra. Notably, Persistent Systems, also a Leader, earned ISG’s global CX Star Performer award—a nod to its top-tier customer satisfaction ratings.
Meanwhile, Hexaware and Mphasis were highlighted as Rising Stars in three quadrants, while Genpact, PwC, and Quantiphi were Leaders in three quadrants each.
Looking Ahead: Cloud as a Catalyst for AI Transformation
As AI continues to drive cloud evolution, ISG believes that Google Cloud’s powerful AI suite—paired with its growing list of expert partners—positions it as a go-to platform for enterprises aiming to modernize with measurable ROI.
“As AI transforms both cloud tools and enterprise operations, [enterprises] are likely to gain even greater benefits,” said Tapati Bandopadhyay, lead author of the report.
The report also touches on the migration of Oracle workloads to Google Cloud, a trend gaining momentum, and the rising need for FinOps practices to bring fiscal discipline to ballooning cloud deployments.
In short, Google Cloud’s ecosystem is maturing fast—and so are the expectations. As U.S. enterprises demand more from their cloud investments, partners who can deliver AI-laced, security-conscious, and cost-smart strategies are rising to the top.
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