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Investment Analysis of the European Infrastructure as a Service (IaaS) Industry

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.


  • Executive Summary
    • Key Findings
  • Research Methodology, Objective, and Scope
    • Research Methodology
    • Research Objective and Scope
  • Introduction
    • IaaS Value Chain
    • Value Chain Definitions
    • Business Model
    • Market Trends
    • Mega Trends Impacting the IaaS Industry
  • Investment and Investor Profile in the IaaS Industry
    • Investor Profiles in IaaS
      • Table IaaS Industry: Deal Volume, Europe, 2009-2014
    • Reasons for Investing in IaaS
    • Investment Benchmarking-Financial Ratios for IaaS Firms
      • Table IaaS Industry: Activity Metrics, Europe, 2010-2014
    • Measuring Exit Success-M&A vs. IPO
      • Table IaaS Industry: Exits Distribution of Investors, Europe, 2009-2014
    • Exit via M&A-Who Buys and at What Multiple
      • Table IaaS Industry: EV/Revenue Range Distribution with Financial Firms as Sellers, Europe, 2009-2014
      • Table IaaS Industry: EV/Revenue Range Distribution with IT Firms as Buyers, Europe, 2009-2014
  • Understanding the Infrastructure Segment
    • Porter's Analysis for the Infrastructure Segment
    • Top Infrastructure Segment Market Trends
    • Top Factors Deciding Quality of Investment
  • Understanding the Data Centre Infrastructure Management (DCIM) Segment
    • Porter's Analysis for the DCIM Segment
    • Top DCIM Segment Market Trends
    • Top Factors Deciding Quality of Investment
  • Understanding the Content Delivery Segment
    • Porter's Analysis for the Content Delivery Segment
    • Top Content Delivery Segment Market Trends
    • Top Factors Deciding Quality of Investment
  • Understanding the Cloud Service Providers Segment
    • Porter's Analysis for the Cloud Service Providers Segment
    • Top Cloud Service Providers Segment Market Trends
    • Top Factors Deciding Quality of Investment
  • Conclusion

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