German enterprises are increasingly focusing their public cloud strategies on AI, driven by the need for scalable infrastructure, robust security, and compliance with stringent data regulations. According to the 2025 ISG Provider Lens® Multi Public Cloud Services report for Germany, the shift is no longer centered solely on speed to market or improved customer experience but is now heavily influenced by the integration of AI technologies. As companies move AI from experimental pilots into core business operations, they are reevaluating how cloud platforms support their strategic goals. Key priorities include cost optimization, data protection, and industry-specific use cases. Providers are responding by enhancing efficiency, offering greater financial transparency, and aligning cloud investments with business outcomes. A major trend highlighted in the report is the growing demand for sovereign cloud solutions. German enterprises now expect strong control over data residency, legal compliance, and regulatory certainty. This has pushed hyperscalers to expand regional data centers, strengthen security protocols, and tailor their offerings to meet local requirements—enabling organizations to maintain data sovereignty without compromising on scalability or innovation. Cost management is also a top concern. Amid economic uncertainty, businesses are seeking structured approaches to cloud spending. Providers are stepping in with FinOps services, optimization frameworks, and advisory support to help clients achieve better return on investment and operational efficiency. Small and midsize enterprises (SMEs) are increasingly looking for end-to-end cloud solutions that include strategy, transformation, and ongoing operations. They favor providers that offer integrated services and deep industry expertise. Leading providers are adapting by strengthening vertical-specific capabilities and organizing their teams around customer needs to build lasting relationships. Cybersecurity and sustainability are also rising in importance. With increasing regulatory pressure and risks from IoT infrastructure, companies are partnering with providers to safeguard assets and meet climate goals. The report also notes growing demand for interoperability across multiple cloud platforms and efforts to consolidate cloud management partners. This reflects a broader push for streamlined, agile, and secure cloud environments. In its evaluation of 100 providers across eight quadrants, ISG named Deutsche Telekom/T-Systems a Leader in seven categories. Accenture, Arvato Systems, Atos, CANCOM, Capgemini, DATAGROUP, HCLTech, and Microsoft were recognized as Leaders in three quadrants each. AWS, Claranet, Google, Infosys, Kyndryl, NTT DATA, Rackspace Technology, Skaylink, Syntax, TCS, and Wipro led in two quadrants. Additional providers, including All for One Group, Axians, Box, Brainloop, DRACOON, Dropbox, FTAPI, IBM, idgard, IONOS Cloud, noris network, OVHcloud, plusserver, Reply, and STACKIT, were named Leaders in one quadrant. DATAGROUP, Exoscale, GRASS-MERKUR, IBM, LTIMindtree, msg services, NTT DATA, and Syntax were recognized as Rising Stars—companies with promising portfolios and high future potential. LTIMindtree was named the global ISG CX Star Performer for 2025 among multi public cloud providers, based on the highest customer satisfaction scores in ISG’s Voice of the Customer survey. Customized versions of the report are available from AWS, DATAGROUP, Deutsche Telekom/T-Systems, GRASS-MERKUR, IONOS Cloud, idgard GmbH, Noris Network, and Skaylink. The full 2025 ISG Provider Lens® Multi Public Cloud Services report for Europe is available to subscribers or for purchase on the ISG website.