The cloud services market in developed economies is in the growth phase, while emerging markets are playing catch up

Iran is an emerging market, but there are number of additional barriers that slow the growth of cloud

CxOs need to evaluate Iran’s nationwide ICT development and their entry strategy to penetrate the market

Scope & Limitations

The MENA Cloud market is mainly driven by the GCC, but looking forward big growth potential is hidden in Iran

Iranian ICT market trends spin around topics such as internet speed, internet censorship and security

Enterprises prefer to have their data hosted within the country – lack of clear legal laws causes uncertainty

Present market scenario of Iranian cloud market is relatively nascent, as cloud is a new subject in Iran

Cloud is mostly driven by the need to save on costs as infrastructure is relatively expensive to acquire

Private cloud dominates the Iranian Cloud market with IaaS representing 65% of total cloud market in 2016

Private IaaS has the maximum market traction due to poor infrastructure availability and CAPEX savings

Hybrid cloud, as well as private cloud, is only offered by local players and most of the clients are large corporates

Public cloud adoption is restrained by the lack of the required internet speed and the security concerns

Enterprises consider displacing non-core applications in the cloud; SaaS, will drive the growth/adoption

Workloads that enterprises traditionally place “off-site” are expected to be considered for IaaS by top adopters

Other verticals are at different stages of adoption with a reasonably optimistic outlook towards implementation

The retail sector is the most advanced sector that has adopted cloud due to mobile and social media data

Iranian cloud market is dominated by local cloud providers who operate using/reselling global products

The top 4 participants in Iran control 68% of the cloud market, with Afranet as the market leader

End-user snapshot revealed that just a few respondents would explore cloud when setting up a new business

Email, CRM, web and email security are the most popular workloads that are deployed in the cloud

Connectivity & Convergence – MENA to be linked through 545 Million Connected Devices By 2020

Iran does offer a great potential for cloud, but there are macro and micro challenges that have to be addressed

Key success factors should be factored into the plan for each vertical due to different levels of vertical development

The future is in the cloud, but lack of awareness and absence of economies of scale for service providers in Iran is a challenge

The evolution of XaaS will drive the market due to CAPEX elimination, but Iran still has a long way to go

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