9.4.6Segment

Managed Hosting & Cloud Infrastructure

Managed hosting and cloud infrastructure providers delivering dedicated, private cloud, and shared hosting services.

4
Verticals

Overview

Managed Hosting & Cloud Infrastructure covers the provision and management of hosting and cloud infrastructure — managed hosting, private cloud, and the operation of infrastructure on behalf of clients, bridging traditional hosting and the public cloud. It spans managed-hosting providers, private-cloud operators, and the managed-services layer atop hyperscaler infrastructure.

Demand is driven by organizations seeking managed infrastructure without operating it themselves, hybrid and private-cloud needs, and the management complexity of cloud environments. It overlaps the data-center and hosting infrastructure profiled under Data Centers & Colocation (where the underlying capacity is sized); this entry covers the managed-services dimension, which is consolidating around scaled providers.

Market snapshot

Market size
~$329B
Growth
~15.9%CAGR (2017–22, nominal)
Companies
~11,482 firms
Firms by employee count

77.6% of firms have fewer than 20 employees: 8,911 micro-businesses, below most mandates.

The investable universe2,571 firms with 20+ employees
20–99
1,34952%
100–499
65225%
500+
57022%

The largest single segment in technology services, and the one that quietly reorganised the rest of it — hyperscale cloud now carries the infrastructure that enterprises used to buy and run themselves. Revenue more than doubled in five years, but the concentration matters more than the growth: three providers hold most of it, so the acquirable businesses here are the specialists and resellers positioned around them rather than the platforms.

NAICS 518210. U.S. Census Bureau — 2022 Statistics of U.S. Businesses; U.S. Census Bureau — 2022 Economic Census.

Business model & economics

Revenue model

Managed hosting and cloud-infrastructure subscriptions

Key economics

Revenue per firm
$28,694,139
Revenue per employee
$500,449
Employees per firm
49.7
Recurring revenue
High

recurring hosting/infrastructure contracts

EBITDA margin
Strong

recurring infrastructure-services economics

Capex intensity
Moderate

Characteristics

  • Scale-driven — payroll is only 24% of revenue; the cost base is assets, not headcount
  • Deep strategic-buyer pool — 570 firms exceed 500 employees, so a scaled asset has trade buyers
  • Managed hosting, private cloud, and infra operation.
  • Bridges traditional hosting and public cloud.
  • Hybrid/private-cloud management demand.

NAICS 518210. U.S. Census Bureau — 2022 Statistics of U.S. Businesses; U.S. Census Bureau — 2022 Economic Census.

Geographic concentration

AlabamaAlaskaArizonaColoradoFloridaGeorgiaIndianaKansasMaineMassachusettsMinnesotaNew JerseyNorth CarolinaNorth DakotaOklahomaPennsylvaniaSouth DakotaTexasWyomingConnecticutMissouriWest VirginiaIllinoisNew MexicoArkansasCaliforniaDelawareHawaiiIowaKentuckyMarylandMichiganMississippiMontanaNew HampshireNew YorkOhioOregonTennesseeUtahWashingtonWisconsinNebraskaSouth CarolinaIdahoNevadaVermontLouisianaRhode IslandDistrict of ColumbiaVirginia

The District of Columbia and Virginia — Northern Virginia carries more data-centre capacity than any other market in the world, built on cheap power, fibre density and proximity to the federal cloud buyer.

District of ColumbiaVirginia

U.S. Census Bureau — 2022 Statistics of U.S. Businesses (firms by state), NAICS 518210. Concentration shown by location quotient.

M&A deal context

Deal activityModerate

Who’s acquiring

  • Managed-hosting & cloud providers
  • Data-center & infrastructure operators
  • PE-backed platforms

What’s driving deals

  • Hybrid and private-cloud management.
  • Managed-infrastructure outsourcing.
  • Provider consolidation.

Verticals in this segment

Find Managed Hosting & Cloud Infrastructure acquisition targets

Search Acquisera’s index for companies classified under Managed Hosting & Cloud Infrastructure (9.4.6) and build a targeted deal pipeline.

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