Market Update: Cloud Services Q3 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. Moreover, the hybrid cloud helps small and large independent software vendors give every customer a positive experience through reassurance that their confidential information will be protected.
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 a slight uptick in activity in Q2, deal activity has slowed to start the second half of 2022, but many analysts are expecting a similar Q4 to last year.
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.