Data Processing, Hosting, and Related Services Revenue Benchmarks
The average data processing, hosting, and related services business in the United States generates $18.9M in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 11,080 data processing, hosting, and related services businesses in the U.S., employing 552,789 workers with an average profit margin of 18.0%. The average employee in this industry earns $171K per year (Bureau of Labor Statistics QCEW 2023).
What Does a Data Processing, Hosting, and Related Business Actually Do?
Cloud infrastructure providers — hyperscalers (AWS, Azure, GCP) and specialty (Digital Ocean, Vercel, Cloudflare). Charge per-usage; enterprise deals get discounts.
Who buys: Software companies, digital businesses, enterprises running IT infrastructure in the cloud.
Average Revenue
$18.9M
per year
Profit Margin
18.0%
industry average
Revenue / Employee
$380K
per year
Total Businesses
11,080
in the US
Est. Owner Income
$3.4M
small business avg
Labor Cost
40.0%
of revenue
Avg Employee Wage
$171K
per year (BLS)
Market Saturation
3.3
firms per 100K people
How Much Do Data Processing, Hosting, and Related Services Charge?
Cloud infrastructure providers (AWS, Azure, GCP, Digital Ocean, etc.) price per usage.
| Service | Typical range |
|---|---|
Compute (per vCPU-hour, on-demand) | $0.01–0.30/hr |
Storage (per GB-month) | $0.005–0.05/GB/mo |
Data transfer out (per GB) | $0.02–0.15/GB |
Managed database (small) | $25–500/month |
Enterprise deals | 20–40% off list |
Ranges based on industry rate surveys and typical published pricing. Actual quotes vary by city, business size, and job complexity.
Complete data processing, hosting, and related business plan
A 12-section data-backed business plan for a data processing, hosting, and related services business — executive summary, market analysis, competitive landscape, revenue model, 3-year financial projections, operations, marketing, staffing, funding request. Pre-populated with real Census, IRS, and BLS data on this industry. Free to view.
Cost Structure — Where Every $100 in Revenue Goes
Approximate P&L breakdown for the data processing, hosting, and related services industry. Labor share and net profit are grounded in Census SUSB and IRS SOI data. Other lines are split using sector-typical ratios.
| Category | Per $100 revenue | Per typical business | What's in it |
|---|---|---|---|
Hosting & third-party services | $6 | $1.2M | Cloud infrastructure (AWS/Azure/GCP), APIs, content licensing, payment processing. |
Wages & benefits | $40 | $7.6M | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $6 | $1.2M | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $8 | $1.6M | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $21 | $4.0M | R&D, software licenses, sales commissions, customer support tools. |
Net profit | $18 | $3.4M | What remains for the owner or shareholders after all business expenses. |
Directionally accurate for a typical business in the industry. Individual businesses vary widely — a franchise may run a very different cost mix from an independent, and older established businesses often have lower labor share than newer ones.
Average Revenue by Business Size
Industry Dynamics (Census BDS 2023)
New Business Rate
13.85%
openings/year
Closure Rate
12.56%
closings/year
Net Job Growth
+3.1%
annual
Businesses Closed
1,094
in 2023
Firm Count Trend
Should You Start a Data Processing, Hosting, and Related Business?
Startup Cost
$50K – $250K
Break-Even
1 months
5-Year Survival Rate
50.0%
Related Industries
Frequently Asked Questions
- What does a data processing, hosting, and related services business do?
- Cloud infrastructure providers — hyperscalers (AWS, Azure, GCP) and specialty (Digital Ocean, Vercel, Cloudflare). Charge per-usage; enterprise deals get discounts. Software companies, digital businesses, enterprises running IT infrastructure in the cloud.
- How much do data processing, hosting, and related services charge?
- Cloud infrastructure providers (AWS, Azure, GCP, Digital Ocean, etc.) price per usage. See the pricing table above for typical rates by service type.
- How much does the average data processing, hosting, and related services make per year?
- The average data processing, hosting, and related services business generates $18.9M in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $3.4M per year at a 18.0% profit margin.
- How many data processing, hosting, and related services businesses are there in the US?
- There are 11,080 data processing, hosting, and related services businesses operating in the United States, employing a total of 552,789 workers.
- How much does it cost to start a data processing, hosting, and related services business?
- Startup costs for a data processing, hosting, and related services business typically range from $50K to $250K, with a 5-year survival rate of 50.0%.
- What is the average salary in the data processing, hosting, and related services industry?
- The average employee in the data processing, hosting, and related services industry earns $171K per year, according to Bureau of Labor Statistics data (QCEW 2023).
Industry Growth & Survival
The data processing, hosting, and related services industry is actively growing — adding jobs at a net rate of 3.1% per year. New establishments are opening faster than existing ones close (13.8% entry vs 12.6% exit), indicating healthy demand.
Approximately 51% of data processing, hosting, and related services businesses survive their first 5 years. This is near the national average (~50%), with typical business risk. In 2023, 1,094 firms in this industry closed permanently.
Employment & Wages
The average employee in the data processing, hosting, and related services industry earns $171,216/year. This is significantly above the national average of ~$65K, reflecting the skilled nature of this work. With 52,766 establishments employing 486,208 people, the typical business has about 9 employees.
Industry Trend (2000–2023)
The data processing, hosting, and related services industry has grown 80% since 2000 (from 5,507 to 9,920 firms).
See full historical statistics →Compare Data Processing, Hosting, and Related Services revenue with other industries: