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The Middle East's Cloud Computing Market: The Next Major Tech Market! 

Coredge Marketing

September 29, 2022

The COVID pandemic has increased interest in cloud-based applications and technologies. Hyperscale public cloud services are still expanding, paving the way for rapid adoption of the cloud. 

The use of cloud computing is increasing in the Middle East thanks to the pandemic, government spending on smart city and public administration projects, and the ease of access to an expanding range of data centres and managed service options to support enterprise adoption of emerging technology. All of these factors contribute to the Middle East’s growing use of cloud computing. 

Regional and hyperscale providers alike are scrambling to keep up with the demand for cloud services. Over the past years, data centres from big players like Microsoft, Amazon Web Services (AWS), Oracle, and IBM have appeared around the Middle East, enhancing the already-existing cloud footprint of Alibaba, SAP, and regional providers. 

This is encouraging for regional economic growth since cloud computing, with its affordable processing power and data storage options, is necessary to fully realize the potential of emerging technologies like blockchain and artificial intelligence (AI). 

It seems unlikely that the growth of data centres will slow any time soon. The pandemic, which gave the already-expanding cloud sector more fuel, is a major factor. Get more information from one of the top cloud providers, Coredge.io. Connect with us to learn more about our products and services  

Although the cloud market in the ME region seems to be picking up momentum, challenges remain. 

The Challenges:  

  1. Data residency and legality: The legality of cloud computing across MEA borders is an obstacle. Data hosting outside of national borders are prohibited by governments in emerging markets. For example, if you want to develop an app for the Saudi market, you have to work with local data centers.  
  1. Security threats: Even though cloud computing boosts productivity for many firms, the ease of access to data for so many people may have unintended consequences. “Unlike when data is held on servers abroad, when your customer’s information is housed on your own physical network, you don’t have to worry as much about any potential security breaches. Many individuals think that the cloud is far safer than physical equipment, which is more easily burned or destroyed, notwithstanding the likelihood of cyber threats to enterprises. By implementing security enhancements like multi-factor authentication across all accounts, threats to cyber security can also be removed at the user level. 
  2. Pain of migration: This is the term used to describe the downtime brought on by the migration from the legacy system architecture to the cloud. Similar to how the adoption process requires a change management strategy, the migration process can take a long time and become exceedingly uncomfortable. 

Cloud computing future in Middle East Market 

Over the past decade, the Middle East has seen exponential growth in the use of the Cloud, and “non-cloud” IT environments are now a thing of the past. It is not an overstatement to say that most industries may use one or more cloud computing techniques in their daily operations given this industry’s rapid expansion. 

Even though no industry is exempt from this trend, governments in the ME area are just now catching up to cloud usage. We now have government data stored on the cloud, government services powered by apps, online services hosted in the cloud, web interactions, and more. Utilizing the cloud has several benefits, including increased flexibility and efficiency as well as significant cost savings. 

National strategic visions and initiatives like Bahrain’s cloud-first policy, the UAE Vision 2021, Saudi Arabia’s Vision 2030, and the New Kuwait Vision 2035 encourage governments to utilise innovative technology like cloud computing to achieve their transformation objectives. 

Since adopting its Cloud First Policy in 2019 to promote cloud adoption throughout the public and private sectors, Saudi Arabia has seen a 16% increase in the use of cloud services. By 2030, there might be a $10 billion market for cloud services in the Kingdom, according to predictions. 

Opportunity@ MENA cloud market 

The UAE has been leading the region’s digital transformation by adopting technology from the fourth industrial revolution and building a future-ready infrastructure. To support the country’s digital transformation, IT behemoths like AWS, Oracle, Microsoft, Alibaba, SAP, and Google are making investments. With the cloud playing a significant role, more than 70% of businesses have expedited their plans for digital transformation by at least a year. 

The digital revolution in the ME area is being led by cloud technologies. With the help of the cloud, unparalleled processing and analysis capabilities can be accessed in a cost-effective way, enabling more insightful analysis and better decision-making.  

While it is obvious that the Middle East has made progress and has fully tapped into the power of the cloud, the region is headed toward tremendous cloud expansion in the years to come. 

Looking for an expert cloud provider in the MENA region? Send an email to talktous@coredge.io

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