Market Update: Cloud Services Q2 2022
As the global economy continues to emerge from the latest COVID-19 surge many companies are continuing to double down on their cloud services implementation, especially the hybrid cloud model. Hybrid cloud bridges the gap between Information Technology (IT) and businesses by improving agility and efficiency, as well as by rapidly delivering IT resources at a low-cost, and hybrid cloud helps provide economies of scale while also delivering security to the sensitive information companies possess.
The hybrid cloud market has experienced significant overall growth in the past few years compared to other cloud services and is expected to grow at a 21.1% CAGR from 2021-2026. This growth is backed by hybrid cloud computing’s ability to give businesses the ability to scale their on-premises infrastructure up to the public cloud to handle any overflow without giving third-party data centers access to their entire sets of data, something even more important as computing and processing demand fluctuates. North America is expected to hold a prominent share of this hybrid cloud market, as many companies in this region are moving beyond solely operating in the public cloud, as a hybrid cloud strategy will help deliver improved services to customers.
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 to close out 2021, deal activity has slowed in the first half 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.