Trends Report

The Consolidating Hosting Market Poses New Challenges For SVM Professionals

November 2nd, 2011
Bill Martorelli, Principal Analyst
Bill Martorelli Principal Analyst
With contributor:
Sean-Paul Mauro

Summary

After years of relative stability, four significant acquisitions so far this year have partially transformed the market for managed hosting services. While all of the acquisitions have been interpreted as a cloud "land grab," the reality is more complex. The goal of each new co mbination is to harness the rapid growth in the cloud segment while maximizing potential in ancillary businesses, some of which are under siege. Although each of the acquired companies has a well-regarded cloud offering, only one of them was a pure cloud services player — and each transaction needs to be evaluated separately for its synergies with adjacent businesses. As such, the newly combined entities provide some significant opportunities for sourcing and vendor management (SVM) professionals who are making the transition to new cloud-based services.

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