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Q2 2021: Infrastructure Quarterly Report (Sector Overview)

$2,500.00 USD


Executive Summary

The infrastructure services sector continues to gain momentum and there were numerous developments and data points coming out of the recent quarter that confirm this reality. Economies have continued to open up, decisions that have been put on hold are back in play and sales pipelines are filling as a result. The recoveries have been uneven across different regions and the situation is far from stabilized, but in general, the market has clearly moved beyond the lows of last year.

Last quarter, we spoke of a possible resurgence and there is plenty of reason to maintain this optimism. Public cloud infrastructure is seeing growth acceleration, the SMB cloud space is seeing the same and data centre colocation, managed hosting and MSPs are steady and also seeing meaningful levels of improvement. The consistency of performance across the individual Internet infrastructure segments is a hallmark of the sector and speaks to how the ecosystem is so closely intertwined.

There is more separation emerging even as the sector kicks into this new gear. Scale is increasingly critical and providers that have achieved it are taking full advantage. The top of each infrastructure service category is increasingly being driven by a smaller group of leaders.

But that is not to say that the rest of the field is struggling. Providers are finding more ways to be efficient, shedding legacy businesses, and differentiating through vertical and geographical focus and specialization, while driving innovation. This unprecedented pandemic environment has opened the door for providers to evaluate and strategize amid this change and position for the future. And many have wisely made full use of the time.

This report takes a close look at the noteworthy trends and developments from the recent quarter. We also provide a mid-year temperature check and outlook as we move into the latter half of 2022. A more detailed look at the M&A landscape and SMB sector is available in separate quarterly reports.