UAE Cloud Computing Market—Macro Outlook and Opportunity Assessment, 2017
Government and telecom operators’ infrastructure improvement initiatives drive the market
24-Jul-2017
Global
Market Research
9AC2-00-44-00-00
IT03420-GL-MR_20441
The UAE's Cloud market is ahead of the GCC; however, cloud is still in the early stages of the adoption cycle when compared to the developed economies of Europe and Americas. Till now, only large enterprises have been able to leverage the cloud market, that too with the assistance of international players. The UAE Cloud market is growing rapidly, creating opportunities for local and international market players to explore various cloud services, especially in Infrastructure development- with the growing need to shift from CAPEX to OPEX. This Industry Docket elaborates market and growth opportunities for players across various types (public, private and Hybrid,IaaS, SaaS and PaaS) of cloud.
Scope & Limitations
UAE Cloud market is growing rapidly, creating opportunities for local and international market players to explore SaaS and IaaS services
Decision Maker’s Spotlight
Cloud MENA market is mainly driven by the GCC, but looking forward big growth potential is hidden in initiatives by regional governments
BFSI offers highest growth potential in MENA, but SMEs are expected to be the next wave of growth
Security and data privacy considered biggest concerns by most sectors; Need for a trustworthy security partner is increasing
To address the cloud security issue, Standalone cloud security solution providers have sprung up in the UAE over the last few years
Cloud solution providers for large enterprises should focus on web services, CRM and data management based solutions as they show the highest adoption rates
Cloud usage in the UAE is for non-critical services or business operations such as email, Dropbox, sales and CRM
Government and telecom operators’ infrastructure improvement initiatives drive the market… Market size forecast – CAGR 38.37%
With companies providing multilayered security framework, the common opinion that private cloud is best for data protection has diminished
Implementation of Private IaaS is viewed by many adopters as a critical first step towards broader cloud adoption
Enterprises in the UAE are looking to leverage blended cloud models to meet changing customer requirements in an era of mobile and big data
Focus on compliance, cost and scalability are the most important factors for an enterprise to adopt the public cloud service
Local case studies, besides technical and functional competence are major criteria in selection of a public cloud provider
For 85% of the CIOs cloud implementation is on the anvil as a first priority over the next three years, especially IaaS followed by SaaS
Increasing competition owing to new entrants into the market is compelling SaaS vendors to provide more competitive rates to boost uptake
Stimulated by the rising use of online storage, cloud storage has become the fastest-growing segment of the cloud hardware industry
UAE has huge scope for cloud growth as the majority of vendors have good infrastructure to serve the market and enterprises are in the early adoption stage
As a cloud service provider, integrating or partnering with du and Etisalat is deemed critical to grow among SMBs in the UAE
Local cloud providers mainly compete on private and IaaS cloud, whereas global providers lead public and SaaS market
SMEs’ cloud first strategy would be the key focus point for cloud vendors; demand is further driven by improving levels of awareness among SMEs
UAE Enterprises are realising the potential to lower costs and scale with cloud incrementally; driving migration to SaaS with the help of IT services firms
Recommendations for Cloud vendors in the UAE
Maximize opportunities from existing products and markets; systematically explore new products and markets including Inorganic Opportunites
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