The Opportunity

Market Opportunity

Cloud computing represents an essential tool for innovation, given the easy, flexible and fast implementation of software and application without the burden of purchasing and maintaining physical and network infrastructure.

Worldwide public cloud market is expected to grow at 15-20% annual rate (Source: Gartner, November 2019) since several companies are switching their business operations from on-premise to cloud.

Additive opportunities may arise from the increasing IoT adoption rate, with cloud computing likely to become the backbone of everything that IoT might offer.

Geographical Opportunity

Digital markets in Southeast Europe are one step behind with regard to internet use and are expected to post higher than average growth rates ahead (Source: European Commission, Digital Agenda Scoreboard 2020).

DHH, gaining a leadership position in these markets would like to take advantage of the robust growth trend already in place due to fill the gap with more mature geographies.

These “unusual geographies” can also be seen as experimental markets to test and launch scalable digital businesses internationally, thanks to the amount of talents available in these areas at very competitive costs with respect to more developed markets.

Cultural Opportunity

The market for cloud computing and web services can be seen as highly fragmented and regional (Aruba and Register in Italy) represented by some large software vendors such as GoDaddy (US), OVH (France), AWS (US), Google (US), Microsoft (US). DHH’s “think global act local” approach, proves to remain a strong competitive advantage.

In terms of the market structure and competitive dynamics, cloud hosting market is highly concentrated with predominantly US based players which account for ca. 40% of all worldwide websites. Local based peers continue to play a key role in non-English speaking markets (such as South, Central and Eastern Europe), where asymmetrical information remains a big issue.