ISG says Microsoft platforms are moving into core operations

Microsoft AI and cloud platforms are moving deeper into daily business operations across Asia Pacific, according to a 2026 ISG Provider Lens report.

Information Services Group, listed on Nasdaq as III, published the 2026 ISG Provider Lens Microsoft AI and Cloud Ecosystem report for Asia Pacific on 21 July 2026.

The report covers Australia and New Zealand, Southeast Asia and India. It finds a shift from infrastructure modernisation to AI-enabled business transformation.

Across those markets, organisations are combining cloud, data and AI tools inside existing business processes instead of treating AI as a separate project.

ISG linked that approach to better operational efficiency, stronger customer engagement and improved use of enterprise information.

Michael Gale, partner and regional leader at ISG Asia Pacific, said: “In Asia Pacific, AI has quickly matured from an experimental technology into the driving force of enterprise transformation.”

Gale also said enterprises in the region increasingly view the Microsoft ecosystem as strategic to the next phase of modernisation.

Rather than launching stand-alone AI schemes, many companies are building unified operating environments around Microsoft’s cloud, AI and productivity platforms.

According to ISG, that strategy helps companies tackle fragmented data, legacy infrastructure and pressure to show measurable returns on technology spending.

Employees also use these platforms to automate routine work, find information faster and generate insights for quicker decisions.

Security, regulation and operational resilience are shaping adoption across Asia Pacific. Because data sovereignty rules are evolving, organisations are using responsible AI practices and secure cloud architectures.

$3 billion Asia Pacific expansion

Microsoft is backing that demand with major regional investment, including a $3 billion expansion framework across Asia Pacific.

The company has also established its largest regional hyperscale data centre in Hyderabad, India, to support higher usage in the market.

ISG said many enterprises are adapting Microsoft technologies to industry-specific needs in digital public services, financial operations, manufacturing and customer engagement.

The study assessed 36 providers across three categories: Microsoft Productivity and Business Process Services, Azure Data Transformation and AI Services, and Azure Managed Services.

Accenture & Avanade, DXC Technology, HCLTech, Infosys, Kyndryl, TCS and Wipro ranked as Leaders in all three categories.

Cognizant, Macquarie Cloud Services and Telstra earned Leader status in two categories each. Fujitsu and NTT DATA ranked as Leaders in one category each.

ISG also named Cognizant and LTM as Rising Stars in one category each.

Siddharth Idnani of ISG said organisations that integrate cloud, data and AI into one modernisation strategy see measurably better outcomes than companies that act piecemeal.

The 2026 report is available to subscribers or as a one-time purchase from ISG.