Information Services Group Sees AI Cloud Demand Fuel Record Tech Spending

Information Services Group NASDAQ: III said technology demand continued to expand sharply in the second quarter, driven primarily by cloud-based software and infrastructure services tied to artificial intelligence, while traditional managed services remained in low-single-digit growth mode. On its 95th consecutive ISG Index call, the advisory firm said the combined market for managed services and “as-a-service” offerings reached $42.3 billion in annual contract value, or ACV, in the second quarter, up 43% from a year earlier. Stanton Jones, Distinguished Analyst at ISG, said it was the first time the combined market crossed $40 billion in a quarter and represented the highest growth rate ISG has recorded. As-a-Service Growth Outpaces Managed Services Jones said as-a-service continued to account for most of the market’s...