451 Research Tuangru Report ImageTuangru appeared today in a 451 Research insights report written by analyst, Liam Eagle.

Here is Liam’s take on Tuangru: “The value of an offering that reduces capex is, for the mid-tier hosting provider, an obvious and appealing value proposition. Tuangru indicates that response from prospective customers has been pretty universally positive, and its rapid growth (as well as 451 Research discussions with non-customers in the hosting space) would seem to confirm that claim. EBITDA is the main basis for valuations in the hosting space, which means any activity that improves EBITDA effectively increases the value of the company directly (M&A transactions typically value hosting providers somewhere in the 7 to 12x EBITDA range). This is definitely part of the value proposition Tuangru brings to a hosting provider.

Most interesting to watch will be the potential of the company to change the dynamics in the hosting space as it achieves additional scale – a reasonably likely prospect, given the growth it has already achieved.”