Azure OpenAI Services Could Give Swiss Firms an AI Edge

Switzerland could further strengthen its reputation as an AI leader following Microsoft’s announced plans to add Azure OpenAI services to Swiss data centers, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2024 ISG Provider Lens Microsoft Cloud Ecosystem report for Switzerland finds that the addition of Azure OpenAI services to data centers in Zürich and Geneva could boost Switzerland’s recognition as a hub for AI research and development. This local presence enables Swiss enterprises to meet regulatory requirements while rapidly deploying AI-based solutions, the ISG report says.

“More and more IT service providers are adapting their offerings to the specific needs of AI and GenAI while optimizing processes and workflows,” said Uwe Ladwig, managing director, ISG Switzerland. “This unlocks opportunities for Swiss companies to increase efficiency and gain decisive competitive advantages.”

Despite the increasing use of cloud services, the Swiss market is not yet approaching a saturation point. On the contrary, according to the ISG report, new or adapted fields of application and solutions are fostering long-term growth in this sector. In fact, 2024 will see rapidly increased demand for cloud services, with networking increasing significantly, the report says.

As a pioneer in the area, Microsoft is establishing standards by integrating AI and cloud technologies into products such as Azure, Microsoft 365 and Dynamics 365, the ISG report says. The progressive introduction of GenAI has catalyzed groundbreaking solutions and fundamentally changed the Microsoft ecosystem, the report says.

The launch of Microsoft’s Copilot marks an historic turning point for the company and underlines its ambition to consolidate and commercialize its leading position in GenAI, the ISG report says. An impressive example is GitHub’s year-over-year revenue growth of more than 40 percent, primarily due to the popularity of GitHub Copilot, the world’s leading AI development tool, the report says.

“Microsoft’s focus on AI is attracting considerable interest in Switzerland,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Those Swiss enterprises that are just beginning their journey are exploring essential functions and services of Microsoft 365 and Azure to achieve significant success and added value.”