Market Update: Cloud Services Q1 2023
The worldwide public cloud market reached $490.3B in 2022 and is forecasted to surpass $590.0B by 2023, leading to a 26.6% CAGR from ‘18-’23. Last year’s 18% growth is a testament to the continued focus on digitalization and online infrastructure. Despite current macroeconomic and geopolitical uncertainty in the market, cloud migration is expected to persist as businesses accelerate IT modernization and initiatives to minimize risk and optimize cost.
Among the many recent innovations in cloud technology, one of the more prominent trends seen in today’s marketplace is the continued integration of serverless cloud. Pioneered by Amazon through AWS Lambda, serverless cloud is a cloud-based code execution model where cloud providers, instead of developers, deal with servers and computing resource management. This segment had a $9.0B market value in 2022 and is projected to reach $37.7B by 2028, a 22.7% CAGR.
7 Mile’s focus in this market update is on M&A activity within the Cloud and Enterprise Applications space. Although deal activity in 2022 was down modestly from the year prior, overall volumes are still increasing at a healthy rate, commanding a 14.3% CAGR from 2018-2022.
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, Tim Frye, and Ilia Ulianchuk if you would like to learn more.