Consolidation in Dutch Cloud & Hosting Sector Continues

IS KPNAnother one bites the dust. Yesterday KPN acquired managed hosting and cloud provider IS Group. IS Group is an independent cloud and hosting provider headquartered in Purmerend with approximately 130 employees and annual revenues of € 25 million.

KPN is strengthening its position on the Dutch cloud and hosting market. For this purpose it acquired Argeweb last year. KPN also entered in an agreement with Softlayer to use the Softlayer public cloud infrastructure for KPN customers that are looking for a standard public cloud offer other than CloudNL. KPN also introduced the ZorgCloud for healthcare customers and collaborated with Tech Data and HP in the TD Cloud initiative. Another sign of the importance of cloud to KPN’s strategy is the recent appointment of Rick van Schaik to lead KPN’s cloud and hosting portfolio across its business units.

Currently KPN is pursuing a multi-brand strategy within the cloud and hosting sector, maintaining the KPN Business, XS4All, Argeweb and IS Group brands as they appeal to different customer groups.

IS Group is (was) one of the largest Dutch independent cloud and hosting providers (check out our most current top 10 here for more M&A targets).

We expect consolidation in the Dutch cloud and hosting sector to continue as the market is still fragmented and more players are actively pursuing M&A strategies.

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