Intel Capital: Private Equity in the IaaS sector
03/02/2020
Diego Gutiérrez
Intel Capital: Private Equity in the IaaS sector

The risk in Private Equity is high and, therefore, the number of them that are finally carried out is not too high.

Infrastructure as a service, IaaSis a form of cloud computing that provides virtualised computing resources over the internet.

However, according to a study by Baker Tilly, IaaS is one of the sectors where most of them are carried out.

HOW DOES THE SECTOR WORK? IaaS?

In an IaaS model, a cloud provider hosts the infrastructure components traditionally present in an on-premises data centre, including servers, storage and network hardware.

The IaaS provider also provides a range of services to accompany these infrastructure components.

Well-known examples of this market include Amazon Web Services and Microsoft Azure.

BENEFITS IaaS

Increasingly successful, such platforms have a number of benefits:

  • Eliminates capital expenditure and reduces ongoing cost.
  • Improves business continuity and recovery from potential "disasters" or "mishaps".
  • Innovate quickly.
  • Rapid response to commercial changes in business.
  • Concentration on core business.
  • Increased stability, reliability and compatibility.

PRIVATE EQUITY

The IaaS sector receives large amounts of money, typically in excess of €100M, in investments in companies with high growth potential.

They do so in exchange for control of a percentage of the company or its shares, although they typically buy 100% of a company.

One of the most active players in private equity is the division Intel Capital.

Below, we will detail some of its most relevant aspects.

GETTING TO KNOW INTEL CAPITAL

Founded in 1991, Intel Capital, a strategic investment, the Corporate Venture capital of Intel Corporation.

It supports innovative technology companies and, in addition to investing in technology start-ups, it also invests in companies offering software, hardware, mobility and digital media, among others.

YOUR ACTIVITY

Since its inception, Intel Capital has invested $12.4 billion in 1,544 companies around the world.

In addition, 670 portfolio companies have been taken public or acquired.

TOP EXITS IN THE SECTOR IaaS

VIRTUSTREAM

Virtustream provides cloud computing software and management infrastructure as a service to businesses and governments.

TIER 3

Tier 3 unleashes business agility through enterprise-class cloud software and services, putting global companies on the path to IT-as-a-Service..

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