Investment Analysis of the European Infrastructure as a Service (IaaS) Industry
As more enterprises overcome security concerns, demand for cloud storage and cloud-based services will increase rapidly.
The above trend combined with Mega Trends such as Smart Cities, Big Data, and the Internet of Things (IoT) serves as a strong indicator of demand for the infrastructure as a service (IaaS) industry making it a viable source for investment opportunity.
Macro-economic conditions have impacted revenue of firms and also exit multiples for investors.
High barriers to entry and economies of scale make it difficult for a single venture capitalist to invest in a start-up. However, venture capital (VC) activity accounts for a major portion of deal volume in which investors invest as a group or invest in allied software to aid the IaaS industry.
In comparison to firms in the United States, European firms have more stable operations as indicated by a flat cash conversion cycle that occurred between 2009 and 2014.
The top 3 industries leading adoption of cloud-based services are retail, energy, and manufacturing. Thus, data centres catering to these segments can be expected to perform reasonably well.
About this report
This study analyses the European IaaS industry from an investor's perspective. First, the study focuses on various business models found in this industry. The next section deals with investment profiles, detailing the types of investments made during the study period. It also explores the kinds of exits and the success rates of investments. Last, the research includes an introduction to each of the segments and explores how specific trends help investors gauge the industry’s potential. The study takes into account historical data from 2009 to 2014 to make projections for 2015.
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