Market Update: Cloud Services – Q3 2021
COVID-19 remains a catalyst driving digital transformation, especially accelerating the pace at which companies migrate their business operations to the cloud. By 2024, according to McKinsey, “most enterprises aspire to have $8 out of every $10 for IT hosting go toward the cloud, including private cloud, infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS).”
The drive towards cloud adoption has the potential to unlock $1 trillion in business value. With so much at stake, companies are keen to find the right partners to navigate their migration activities. IT Service companies with a track record of experience and expertise in the Amazon, Microsoft, and Google ecosystems are highly valued in the current market landscape.
Our focus in this market update is to focus on the cloud services space in the context of M&A activity. After a decrease in activity in the second quarter of 2021, M&A activity rose slightly in the third quarter.
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, Kevin Postigo, Chris McConnell, or Tyler Ratterree if you would like to learn more about Cloud Services.