In a recent report by GlobalData, the cloud has become a key driver of merger and acquisition activity in the tech, media, and telecom sectors. Despite challenges like inflation and high interest rates, the demand for cloud computing surged, with cloud-related deals totaling 61 billion dollars in 2024. This represents a remarkable 221 percent growth compared to the previous year, contributing to a total global deal value of 514 billion dollars, which is a 27 percent increase from 403 billion dollars in 2023. Notably, the largest cloud deal was Blackstone’s acquisition of AirTrunk for 16 billion dollars, followed by IBM’s purchase of HashiCorp for 6.4 billion dollars.
Axios reports that following significant layoffs in the cybersecurity sector, the job market in Washington, D.C., is experiencing turmoil. The aggressive downsizing initiated by the Trump administration has raised concerns about national security, as it could empower hackers targeting the United States. Key agencies, including the Department of Homeland Security and the Cybersecurity and Infrastructure Security Agency, have faced budget cuts, contributing to an ongoing shortage of skilled cybersecurity professionals. Art Zeile, CEO of the tech careers marketplace Dice, emphasized that the industry has been battling long hours and employee burnout, akin to that of air traffic controllers. He pointed out that there has been a decade-long shortfall of cybersecurity professionals in government positions. As the private sector may rapidly absorb laid-off talent, the uncertainty surrounding the current workforce defending U.S. networks increases, with many leadership roles still unfilled, according to Zeile. The situation is worsened by high burnout rates among current employees, as noted in a survey by Axios.
Why do we care?
The rise in CEO confidence to a three-year high suggests optimism, but the real question for IT services is whether this translates into increased spending on technology and digital transformation. Only 32% of CEOs plan to expand their workforce—a drop from 40%—so we should remain cautious about broader investment trends.
Reducing government cybersecurity personnel increases the risk of breaches, which could drive up demand for private-sector security services. Counterbalance that with less available public resources to help victims and law enforcement efforts. Cloud and cybersecurity remain strong investment areas, but economic uncertainty and talent shortages will shape the industry’s trajectory in the coming months.