Market Update: Cloud Services – Q2 2021
In a period of disruptions, companies accelerated their digital transformation strategies to stay competitive and prepared amid new challenges. According to Gartner, the pandemic intensified enterprises’ plans to move mission-critical workloads from on-premises software to the cloud. Gartner estimates cloud spending to grow aggressively in the following months, with worldwide public cloud end-user spending forecasted to rose 23% in 2021.
Within the space, one of the leading players is Microsoft Azure. Through its platform, Microsoft offers diversity in cloud computing services such as SQL database or virtual desktop. According to Microsoft, revenue of its cloud services grew at 51% from last year’s second quarter. As a result, the market for cloud services providers and Azure partners expended more rapidly. When looking at data from the second quarter of 2021, approximately 15,700 products and services were offered on the Microsoft Azure marketplace, of which 15,377 were published by partners.
We analyzed the M&A activity in the Cloud services sector, with a focus on Microsoft-Azure services providers and partners. After a quarter of intense activity in the space, the second quarter of 2021 marked a significant decrease in deal numbers.
7MA has completed numerous M&A transactions for companies in the Cloud space and has developed unparalleled deal expertise and knowledge of the industry trends, valuation trends, and most active strategic and financial buyers. Please contact Garth Martin, Ilia Ulianchuk, Robin Siegel, or Kevin Postigo if you would like to learn more about Cloud Services.