European enterprises are navigating a complex cloud landscape, with a distinct pivot towards multicloud interoperability, stringent EU sovereignty compliance, and widespread AI adoption shaping their strategies. This trend is particularly evident in the increasing adoption of Oracle cloud environments, especially among businesses seeking partners capable of delivering monetizable, AI-driven solutions. This evolving market dynamic is detailed in a recent report by Information Services Group (ISG).
The 2025 ISG Provider Lens® Oracle Cloud and Technology Ecosystem report for Europe highlights a growing recognition of Oracle as a specialized hyperscale cloud provider, particularly for data-intensive and AI-focused workloads. Enterprises are drawn to Oracle’s established database leadership, its cost-effective AI infrastructure, and its robust multicloud integration capabilities. This integration allows Oracle databases to function seamlessly within competitive cloud ecosystems, a critical factor for businesses aiming to optimize existing investments while pursuing AI and data innovation.
“European enterprises are increasingly turning to Oracle Cloud Infrastructure due to its performance, advanced AI capabilities, and its strategic approach to multicloud,” stated Anthony Drake, partner and president, ISG EMEA. “The ability to run Oracle databases on competitor clouds directly addresses the enterprise need to safeguard current investments while simultaneously scaling AI and data-driven innovation.”
ISG notes that Oracle’s integration of AI as a core component of its applications, rather than an optional add-on, has opened new avenues for service providers to deliver enhanced value. By embedding AI agents into Oracle Fusion Applications as part of the standard subscription, Oracle is facilitating the transition of AI from experimental pilot projects to everyday business operations. In turn, service providers are responding by developing proprietary, industry-specific AI agents for Fusion Applications. These agents are being offered through Oracle’s AI Agent Marketplace, allowing providers to differentiate themselves through deep domain expertise rather than simply basic AI implementation skills.
The report emphasizes that operational resilience, rigorous cost control, and regulatory certainty have emerged as paramount concerns for European enterprises managing increasingly intricate cloud environments. To address these demands, organizations are actively seeking service providers that demonstrate mature site reliability engineering practices, sophisticated FinOps capabilities for effective cloud spending management, and integrated security solutions for continuous compliance monitoring. In highly regulated sectors, service providers are introducing comprehensive compliance-as-a-service offerings. These are delivered through EU-based legal entities and personnel to ensure auditable adherence to EU sovereign cloud mandates.
Enterprises across Europe are increasingly favoring more agile cloud architectures. This involves treating individual business functions as distinct AI capabilities rather than relying on large, monolithic applications. This architectural shift is driving demand for providers that can offer services beyond traditional offerings, including fully managed, in-country cloud platforms operated from their own data centers. Such providers empower enterprises to modernize their digital foundations while simultaneously maintaining low latency, ensuring regulatory compliance, and retaining robust operational control.
“The European Oracle ecosystem has reached a pivotal juncture, characterized by the convergence of AI, multicloud strategies, and sovereignty requirements,” commented Roman Pelzel, principal analyst, ISG Provider Lens Research, and lead author of the report. “Organizations and partners that act swiftly have the opportunity to develop distinctive capabilities, establish compliant architectures, and secure a sustainable competitive advantage.”
Further insights from the report reveal other key trends in Oracle cloud adoption within Europe. These include a growing disparity in AI skills between Oracle partners and increasing pressure on providers to develop higher-value managed services to maintain profitability.
The 2025 ISG Provider Lens® Oracle Cloud and Technology Ecosystem report for Europe provides an in-depth evaluation of 38 service providers across three key quadrants: Professional Services, Managed Services, and OCI Solutions and Capabilities.
Leading providers recognized across multiple quadrants include Accenture, Capgemini, Cognizant, HCLTech, Infosys, LTIMindtree, TCS, Version 1, and Wipro, each named as Leaders in three quadrants. Deloitte, DSP, Fujitsu, PwC, and Tech Mahindra were identified as Leaders in two quadrants, while IBM was recognized as a Leader in one quadrant.
Reply was highlighted as a Rising Star in two quadrants, recognized for its promising portfolio and significant future potential. IBM also received a Rising Star designation in one quadrant.
In terms of customer experience, Cognizant was named the global ISG CX Star Performer for 2025 among Oracle Cloud and Technology Ecosystem providers, achieving the highest customer satisfaction scores in ISG’s Voice of the Customer survey.
The report, which delves into the evolving challenges and opportunities within the European Oracle cloud landscape, is available for subscribers or for individual purchase. ISG Provider Lens® research offers a unique combination of empirical data-driven analysis and the practical experience of ISG’s global advisory team, equipping enterprises with valuable insights for selecting sourcing partners and informing ISG’s own client recommendations.
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