European Enterprises Adopt Oracle Cloud for Push into AI
Multicloud interoperability, EU sovereignty compliance, AI adoption dominate enterprise cloud strategies in Europe, ISG Provider Lens® report says
European enterprises are increasingly adopting Oracle cloud environments, especially with partners that can advise on and deliver monetizable, AI-driven solutions, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.
The 2025 ISG Provider Lens® Oracle Cloud and Technology Ecosystem report for Europe finds a growing number of companies view Oracle as a specialist hyperscale cloud provider for data- and AI-intensive workloads. They value its database leadership, cost-efficient AI infrastructure and deep multicloud integration that allows Oracle databases to run seamlessly within rival cloud environments.
"Enterprises in Europe are turning to Oracle Cloud Infrastructure for its performance, AI capabilities and multicloud strategy," said Anthony Drake, partner and president, ISG EMEA. "Running Oracle databases on competitors' clouds aligns with enterprises' need to protect existing investments while scaling AI and data innovation."
Oracle's delivery of AI as a built-in capability of its core applications, rather than an add-on feature, has created new ways for service providers to add value, ISG says. By embedding AI agents into Oracle Fusion Applications as part of the base subscription, Oracle helps organizations move AI from pilots to everyday business use. In response, providers are developing proprietary, industry-specific AI agents for Fusion Applications, offering them through Oracle's AI Agent Marketplace and differentiating themselves with deep domain expertise rather than basic AI implementation skills.
Operational resilience, cost control and regulatory certainty have become critical priorities for European enterprises operating across increasingly complex cloud environments, the report says. To meet these needs, organizations are seeking providers with mature site reliability engineering practices, strong FinOps capabilities to govern cloud spending and integrated security for continuous compliance monitoring. In regulated sectors, providers are introducing compliance-as-a-service offerings, delivered via EU-based legal entities and personnel, for auditable adherence to EU sovereign cloud mandates.
Enterprises in Europe increasingly prefer more flexible cloud designs in which individual business functions are delivered as standalone AI capabilities rather than large, rigid applications, ISG says. This shift increases demand for providers that go beyond traditional services by operating fully managed, in-country cloud platforms from their own data centers. These providers enable enterprises to modernize their digital foundations while maintaining latency, regulatory compliance and operational control.
"The European Oracle ecosystem has reached a critical turning point as AI, multicloud and sovereignty converge," said Roman Pelzel, principal analyst, ISG Provider Lens Research, and lead author of the report. "Enterprises and partners that move quickly can build differentiated capabilities, secure compliant architectures and gain a lasting competitive edge."
The report also explores other trends in Oracle cloud adoption in Europe, including growing AI skills gaps between Oracle partners and rising pressure on providers to build higher-value managed services to sustain profitability.
For more insights into Oracle cloud-related challenges facing European enterprises, plus ISG's advice for addressing them, see the ISG Provider Lens® Focal Points briefing here.
The 2025 ISG Provider Lens® Oracle Cloud and Technology Ecosystem report for Europe evaluates 38 unique providers across three quadrants: Professional Services, Managed Services and OCI Solutions and Capabilities.
The report names Accenture, Capgemini, Cognizant, HCLTech, Infosys, LTIMindtree, TCS, Version 1 and Wipro as Leaders in three quadrants each. It names Deloitte, DSP, Fujitsu, PwC and Tech Mahindra as Leaders in two quadrants each. It also names IBM as a Leader in one quadrant.
In addition, Reply is recognized as a Rising Star — a company with a "promising portfolio" and "high future potential" by ISG's definition — in two quadrants. Additionally, IBM is recognized as a Rising Star in one quadrant.
In the area of customer experience, Cognizant is named the global ISG CX Star Performer for 2025 among Oracle Cloud and Technology Ecosystem providers. Cognizant earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.
Customized versions of the report are available from DSP and Version 1.
The 2025 ISG Provider Lens® Oracle Cloud and Technology Ecosystem report for Europe is available to subscribers or for one-time purchase on this webpage.
About ISG Provider Lens® Research
The ISG Provider Lens® Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.
About ISG
ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world's top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.
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