German Enterprises Deploy Microsoft AI, Uncertain of ROI

Companies embrace Copilot, Azure OpenAI for efficiency, productivity despite few proven use cases, ISG Provider Lens™ report says

FRANKFURT, Germany--(BUSINESS WIRE)-- Enterprises in Germany are increasing their investments in Microsoft AI tools and services despite uncertainties about how these technologies will pay off, 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™ Microsoft AI and Cloud Ecosystem report for Germany finds strong enterprise interest in AI and generative AI, which Microsoft is aggressively promoting in its cloud platforms. German organizations, which place high priorities on automation and efficiency, are beginning to adopt Microsoft’s AI offerings but remain cautious about the return on digital investments under challenging macroeconomic conditions.

“Microsoft is surging forward in AI, and German enterprises want to benefit from its innovation,” said Dr. Matthias Paletta, ISG technology modernization solution lead, EMEA. “Service providers with proven AI use cases and extensive experience are essential for successful implementations.”

Companies in Germany are rapidly adopting Microsoft’s Copilot GenAI chatbot within the Microsoft 365 cloud-based application suite, ISG says. They seek immediate productivity gains through more efficient business processes, though these implementations have shown mixed results so far. Many enterprises have yet to achieve meaningful Copilot solutions that generate significant value. Companies are also increasing their use of Azure OpenAI services to accelerate automation and innovation.

German enterprises are increasingly interested in deploying AI agents within Microsoft 365, ISG says. However, most are still at an early stage, lacking basic information and clear use cases for such deployments. Many service providers in Germany are still unprepared to comprehensively support the use of these agents by their clients.

Demand is also rising in Germany for Microsoft’s Fabric, Foundry and Purview IT infrastructure platforms, ISG says. Among other benefits, Fabric allows organizations to integrate diverse data environments into a consistent infrastructure, while Foundry enables more complex data analysis and Purview provides a transparent governance layer. Companies are deploying the systems together for an integrated solution with high data security and efficient data utilization. Microsoft emphasizes that the platforms can substantially reduce regulatory risk, a promise that resonates with German customers.

Despite strong demand for Microsoft platforms, many German companies are taking steps to control cloud costs, the report says. They are gradually adopting powerful FinOps approaches as AI services increase cloud and AI resource use. Enterprises are also concerned about Microsoft’s complex pricing structures as macroeconomic uncertainty grows.

“Licensing is a significant pain point for companies in Germany and elsewhere,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Qualified service providers can help enterprises implement systems to understand and control licensing costs.”

The report also explores other Microsoft ecosystem trends in Germany, including the growing popularity of multi-cloud environments and the possibility of capacity bottlenecks affecting cloud-based AI computing power.

For more insights into the Microsoft-related challenges facing enterprises in Germany, plus ISG’s advice for addressing those challenges, see the ISG Provider Lens™ Focal Points briefing here.

The 2025 ISG Provider Lens™ Microsoft AI and Cloud Ecosystem report for Germany evaluates the capabilities of 66 providers across seven quadrants: Managed Services for Azure — Large Accounts, Managed Services for Azure — Midmarket, Microsoft 365 Services — Large Accounts, Microsoft 365 Services — Midmarket, Power Platform Services, AI Services for Microsoft Clouds and Dynamics 365 Services.

The report names Arvato Systems, Atos and Deutsche Telekom as Leaders in five quadrants each and glueckkanja as a Leader in four quadrants. It names Accenture & Avanade, Bechtle, Capgemini, PwC, Skaylink, T-Systems and Wipro as Leaders in three quadrants each. Allgeier, Communardo, Computacenter, DATAGROUP, Devoteam M Cloud, DIGITALL, ORBIT IT-Solutions, q.beyond, Rackspace Technology and SoftwareOne are named as Leaders in two quadrants each. The report names adesso, All for One Group, AppSphere, CANCOM, Data One, DXC Technology, HCLTech, Infosys, KUMAVISION, Kyndryl, NTT DATA, Scheer, Sopra Steria, Sycor, Syntax and TCS as Leaders in one quadrant each.

In addition, ACP, adesso, DATAGROUP, Kyndryl, LTIMindtree and Skaylink are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

In the area of customer experience, HCLTech is named the global ISG CX Star Performer for 2025 among Microsoft ecosystem providers. HCLTech 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 DATAGROUP, glueckkanja, ORBIT IT-Solutions and Skaylink.

The 2025 ISG Provider Lens™ Microsoft AI and Cloud Ecosystem report for Germany 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250513897203/en/

Philipp Jaensch, ISG

+49 151 730 365 76

philipp.jaensch@isg-one.com



Matthias Longo, for ISG

+49 152 341 464 63

matthias@longo-pr.de

Source: Information Services Group, Inc.