United States
US 54118730 | Procurement

IT Hosting Services in the US Procurement Price, Data and Insights

IW
IBISWorld Research Department
Analyst New York
IT hosting services are also referred to as cloud-computing services. These services can remotely provide the comprehensive functions of a traditional IT department, including hardware, software, maintenance, security, and other resources. These functions are delivered through the cloud and hosted on the vendor's servers rather than on the buyer's hardware. Buyers maintain control over the operating systems, storage, and deployed applications but entrust all other hardware and software services to the supplier. Major buyers in this market include retailers, financial institutions, and manufacturers.

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What’s included in this market coverage

IBISWorld's research coverage on the IT Hosting Services procurement and pricing environment in the United States includes market dynamics, buyer power scores, supply chain vendors with pricing trends and forecasts.

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About this Market

What’s this procurement report about?

This procurement coverage of the IT Hosting Services market in the United States includes Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS). Standard coding in this coverage includes ISIC-6311-Data processing, hosting and related activities, NACE-63.11-Data Processing, Hosting And Related Activities, NAICS-518210-Computing infrastructure providers, data processing, web hosting, and related services and UNSPSC-81161715-Managed infrastructure service providers.

What common market terminology is included?

Common market terminology included in the IT Hosting Services procurement coverage includes Infrastructure as a Service (IaaS) (Self-service technologies that are used for accessing and managing data (e.g., networks or firewalls) that are stored in remote centers rather than on-site.), Scalability (The ability of a network to continue to function well, even when its size or the volume of information passing through it has been changed.), Random Access Memory (RAM) (Computer storage space where the operating system, application programs and data that are in current use are held so that the computer's processor can quickly access it.), Gigabyte (A unit of computer memory equal to 1,000,000,000 bytes.), Terabyte (A unit of computer memory equal to 1,000 gigabytes.) and Hyperconvergence (The implementation of a new type of IT infrastructure that integrates computer storage, networking, and virtualization into a single, software-driven system.).

What companies are included as top suppliers?

The top companies covered in the IT Hosting Services procurement report as suppliers are Lumen Technologies, Inc., Oracle Corporation, Dell Technologies Inc., Rackspace Technology Inc. and Hewlett Packard Enterprise Co.

Opportunity Assessment

What’s included in the Opportunity Assessment chapter?

The Opportunity Assessment chapter provides a comprehensive market analysis of the IT Hosting Services market in the United States category, including buyer power scoring, market pricing trends, vendor landscape, cost structure, and strategic negotiation levers.

The market pricing trends include the Market Price (2026) per month, a five year price forecast and a supply chain risk score. Vendor coverage includes a market share and cost structure breakdown.

Analysis includes a comprehensive SWOT analysis of and recent developments impacting the IT Hosting Services market environment.

Buyer Power Score

What’s included in the Buyer Power Score chapter?

The Buyer Power Score chapter assesses key components impacting IT Hosting Services procurement including the recent price trend, forecast price trend, availability of substitutes, switching costs, product specialization, average vendor risk, market share concentration, supply chain risk, price driver volatility and recent price volatility.

These components generate a Buyer Power Score that ranges from -5 (strongly favoring sellers) to +5 (strongly favoring buyers) plus a recommended strategy for procurement specialists.

Price Environment

What’s included in the Price Environment chapter?

The Price Environment chapter covers detailed pricing analysis and datasets on IT Hosting Services market environment. This includes insights into market pricing Market Price (2026), price forecasts, volatility, specialization, substitutes and switching costs.

Datasets in the Price Environment chapter include vendor cost structure, breakdowns of wage rates by geography and specialty, key external economic and labor drivers impacting the market and market pricing models.

Supply Chain & Vendors

What’s included in the Supply Chain & Vendors chapter?

The Supply Chain & Vendors chapter covers the concentration, risk and diversity of the IT Hosting Services market. This includes datasets on the market’s top suppliers, detailed analysis on the key sourcing risks and supply chain dynamics, with environmental, social and governance (ESG) considerations and scores.

Business Requirements

What’s included in the Business Requirements chapter?

The Business Requirements chapter covers vendor relationships, qualifications, service level agreements and key performance indicators. These inputs provide insight into the planning process through the buying lead time, vendor relationship and vendor qualifications. The sourcing process include key RFP elements like an organizational overview, project budget, selection criteria, project schedule, proposal format, inventory control, cost containment, regulation, quality control, distribution and key contract clauses.

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Frequently Asked Questions

What is the current market price for IT Hosting Services?

The 2026 benchmark market price for IT Hosting Services is $2250 per month. Prices have increased at a CAGR of 2 from 2023-26.

Who are the top vendors in the IT Hosting Services market?

The top vendors in the IT Hosting Services market include Lumen Technologies, Inc., Oracle Corporation, Dell Technologies Inc., Rackspace Technology Inc. and Hewlett Packard Enterprise Co.

What industries supply the IT Hosting Services market?

The top industries supplying the IT Hosting Services market are Computer Manufacturing in the US, Semiconductor & Circuit Manufacturing in the US, Internet Service Providers in the US, Telecommunication Networking Equipment Manufacturing in the US, Software Publishing in the US and Intellectual Property Licensing in the US.

What is the supply chain risk for IT Hosting Services?

High market concentration in the market constrains buyer leverage and pricing flexibility . The IT hosting market has a high concentration among top tech firms, including Amazon, Google, and Microsoft, which account for over 50% of US revenue despite 2,140+ providers. This limits buyers' ability to negotiate favorable pricing or contract terms. Buyers should engage in a thorough RFP process that includes regional or niche specialists and benchmark service-level agreements regularly. Strategic multi-cloud and hybrid-cloud strategies can help buyers break reliance on dominant players and capture incremental negotiation leverage.

What factors affect the price of IT Hosting Services?

Application and intended use significantly determine pricing in IT hosting services, as different sectors have varying requirements for scalability, security, and compliance. For instance, financial institutions often require higher security measures and regulatory compliance, leading to premium pricing, while retailers may prioritize cost-effective solutions with flexible scalability, resulting in competitive pricing structures.

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