4Q23 IB: Executive Summary
The sector took another step forward in the recent quarter as macroeconomic headwinds temper and conditions improve. There has been tangible stabilization across all sector segments reflected in top-line and bottom-line results, along with core KPIs, as end users dial back cost-cutting initiatives and start thinking about innovation, expansion and growth. The sector is now out of the woods yet, but there seems to be light emerging at the end of the tunnel. And there is reason to be optimistic. The surge in AI demand has ratcheted up demand for data centre colocation and pushed operations into underdeveloped second tier markets, while managed infrastructure providers and MSPs ride the wave of AI tool and service adoption that is driving margins and creating more complexity. It was in many ways a transitional year for the sector, but it was significant in that the groundwork was laid for another wave of growth that is quickly emerging on the near-term horizon. The sector’s overall outlook continues to be positive. This report takes a close look at the noteworthy trends and developments from the recent 4Q23 period. A more detailed look at the M&A landscape, APAC region and hyperscale cloud sectors is available to clients in separate quarterly reports.
or