Cloud Infrastructure
Cloud infrastructure SaaS includes hyperscalers, cloud data platforms, and infrastructure-as-code vendors. These businesses often have usage-based pricing, which makes ARR less predictable but NRR extremely high (120–150%+) when customers are expanding workloads. Track 3 public cloud infrastructure companies here.
What drives multiples in Cloud Infrastructure
Cloud infrastructure multiples are driven by consumption growth and NRR, which can reach 130–150%+ at companies with expanding workloads. Usage-based pricing creates revenue variability but signals total platform adoption. Investors model NRR trends alongside GPU/compute utilization growth as leading indicators of future revenue; gross margin above 60% is the floor institutional buyers require.
Top performers in this sector
Sector vs. all public SaaS
3 Companies
DigitalBridge Group, Inc.
DigitalOcean Holdings, Inc.
Microsoft Corporation
Sector Insights
Below-average efficiency
The Cloud Infrastructure sector averages a Rule of 40 score of 20, below the 35-point threshold that distinguishes efficient SaaS businesses. Higher go-to-market intensity or infrastructure costs relative to growth are common drivers.
Margin pressure
Average gross margin of 63% falls below the 65% benchmark typical of pure-play SaaS. Telco carrier fees, infrastructure pass-throughs, or professional services revenue are common contributors in this category.
Related Benchmarks