Download PDFMay 2022
Market Update: Cloud Services Q1 2022
After emerging from the latest COVID-19 surge, the global economy, and especially the cloud services market, looked at a positive start for the new year. However, after the Russian invasion of Ukraine, growth in the global economy halted. The Eastern Europe economy was specifically impacted, and along with it, much of the growth and optimism in the region’s cloud services market has evaporated. On the other hand, India and LatAm have seen an increased focus and uptick in investment given their distance from the conflict and their wealth in the IT services workforce.
The Indian IT services sector has more than 30-40% of its revenue coming from Europe, and as the Russia-Ukraine crisis continues, this investment is only expected to increase. Regarding the LatAm market, Brazil, Colombia, Peru, and Chile are all seeing better performance in their national currencies as more investment enters these emerging markets to seek safer returns than Eastern Europe markets.
7 Mile’s focus in this market update is on the cloud services space in the context of M&A activity. After much M&A activity in 2021, deal activity started to decline at the beginning of 2022.
7MA has completed numerous M&A transactions for companies in the cloud services space and has developed unparalleled deal expertise and knowledge of the industry trends, valuation trends, and most active strategic and financial buyers. Please contact John Cooper, Ilia Ulianchuk, Kevin Postigo, or Tyler Ratterree if you would like to learn more about 7MA’s work in the Cloud Services sector.
