Cloud Enablement

January 2017

Sectorwatch

The cloud services brokerage and enablement market is expected to grow at a 29% CAGR from ~$7.4B in 2016 to $26.7B by 2021, according to MarketsandMarkets.  In the near term, Forrester sees a second wave of cloud enablement demand as companies move from pilot preparations and experimental implementation, to full scale deployment, stating that the "cloud-hungry enterprise is raging large". 

Industry Trends:

  • Current revenue growth rate is less than the average of the last 3 years, indicating that the market may be flattening or declining
  • Current gross profit margin exceeds the average of the last 3 years gross profit margin, indicating supplier pricing power
  • Current EBITDA margin exceeds the average of the last 3 years EBITDA margin, a condition that may attract new entrants