Kuwait Cloud Computing Market—Macro Outlook and Technology Trends, 2017
Kuwait Cloud Computing Market—Macro Outlook and Technology Trends, 2017
Cloud Service Providers’ Association with Telcos Critical to Expand Portfolio
06-Oct-2017
South Asia, Middle East & North Africa
Market Research
Description
This Industry Docket explores opportunities for infrastructure development in the cloud market including planning and implementing best practices in Kuwait. Recent changes in the country's legislation allow to international IT service and cloud providers like IBM to set up shop. This provides an opportunity for SMEs in Kuwait to leverage global standard services and applications. The docket explores the major growth patterns and risks/challenges associated/perceived by enterprises in Kuwait. The docket also provides insights on key short term and long-term impacts on each vertical by implementing cloud solutions. It also outlines key areas for investment by local and international cloud players
Table of Contents
Hosted private cloud services are growing faster than public cloud as providers roll out services that address enterprise concerns over control and security
Kuwait’s key e-initiatives, much like the other countries in the GCC, are driving the adoption of IT and cloud services across the country
Setting up of the new telecom regulatory shall help the sector to have healthy competition, thus bringing in new services & products to the market
Scope & Limitations
The MENA Cloud market is mainly driven by the GCC, but looking forward big growth potential is hidden in Kuwait
Legislation changes—Kuwait’s foreign investment policy changed, allowing 49% foreign ownership paving way for international giants to set up offices in Kuwait, for e.g.: IBM
Enterprises prefer to have their data hosted within the country— lack of clear legal laws causes uncertainty
Cloud service providers are yet to find the perfect fit and function for the whole market as technology adoption level varies across verticals
Hosted private cloud services are growing faster than public cloud, as providers roll out services that address enterprise concerns over control and security
Of the enterprises 60% consider deploying private cloud as their first choice to improve efficiency and reduce costs
Off late Kuwait is focusing on cloud software solutions dedicated to Islamic Finance. The financial services sector is an early adopter of the cloud
O&G private cloud infrastructure provides a platform for the proactive management of the entire IT environment, which is crucial for O&G companies in Kuwait
Emergence of open standards or open source-based cloud platforms such as OpenStack is a key driver for the growth in hybrid clouds
Public cloud adoption in Kuwait is limited as the private cloud services and hybrid services address the enterprises’ requirements from a cost and security standpoint
Still a nascent market; is currently driven by IaaS offered & serviced by Telcos & private local players. SaaS shows the highest potential for future uptake
IaaS adoption is growing as enterprises increasingly look to third-parties to assume responsibility and lower costs for managing data centre infrastructure
The Kuwait cloud market has strong competition from both local cloud providers as well as international cloud providers
Unlike Qatar or the UAE, international cloud providers tend to operate in Kuwait through local partners
Connectivity & Convergence – MENA to be linked through 545 Million Connected Devices By 2020
Kuwait does offer a great potential for cloud, but there are macro and micro challenges that have to be addressed
Kuwait, with the right level of awareness created, has the potential to become a large adopter of cloud services
IaaS stands to be the immediate focus with enterprises looking to migrate from legacy systems, but SaaS is where the future is
The future is in the cloud, but lack of awareness and absence of economies of scale for service providers in Kuwait is a challenge
The evolution of XaaS will drive the market due to CAPEX elimination, but Kuwait still has a long way to go
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Author | Haritha Ramachandran |
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WIP Number | 9AC2-00-48-00-00 |
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