| SIC Codes: | 7374 |
| NAICS Codes: | 518210 |
Companies in this industry provide application hosting and data storage services, data processing, time-sharing computing services, and related infrastructure and network services. Major companies include Equinix, Rackspace, and Windstream (all US-based), along with 1&1 Internet (Germany) and OVH (France).
Key demand drivers include business activity and technology innovation. The profitability of companies depends on technical expertise to ensure data center uptime and access to data. Large companies have advantages in access to capital for new equipment, larger and more powerful data centers, and global reach. Smaller companies can compete by offering specialized services or focusing on niche markets. The industry is concentrated: the top 50 companies account for about 50 percent of revenue.
Data hosting and processing for human resources, finance, and other business processes account for 30 percent of industry sales; application service provisioning, also known as software as a service (SaaS), accounts for 15 percent. Other services include data management (10 percent) and website hosting (5 percent). Data hosting companies may also offer colocation services, data storage, media storage and delivery services, and other technology support services.