Skip to main content

Growing Public Cloud in the Middle East and North Africa

Hyperscale public cloud services offer agility, scalability and significant cost benefits that are difficult to achieve in traditional enterprise data centers. These services will serve a strategic role as the foundation for the digital business transformation of the future.

At the end of the third quarter of last year, Gartner is predicting a 13.5 percent growth in public cloud services for 2015. This growth is forecast to peak in 2016 and will likely stay constant through 2019, although the actual spend should increase through to 2019.

The public cloud computing market is maturing, across the globe. Public cloud services in the Middle East and North Africa (MENA) region is forecast to grow by 19.3 percent in 2016 to reach a total of $880 million -- that's up from an estimated $737 million in 2015, according to the latest market study by Gartner.

Public Cloud Service Market Development

Moreover, Business Process as a Service (BPaaS), the largest segment of the cloud services market in MENA, is expected to grow by 7.3 percent year-over-year in 2016 to reach $266.2 million.

The largest growing market in the MENA region, cloud management and security services, is projected to grow 29.3 percent year-over-year in 2016. However, the demand for some cloud applications within the region may be somewhat inconsistent from country to country.

"The forecast for cloud services vary based on local factors, including supply and demand within the local markets, country-specific economic conditions, currency exchange rates, and other global market factors," said Sid Nag, research director at Gartner.

Gartner believes that the reasons why the BPaaS market will be the largest in the MENA region during 2016 is testimony that enterprises in are moving away from traditional Business Process Outsourcing (BPO) models to a cloud based BPaaS model.

Furthermore, strong growth in the cloud management and security services segment in 2016 is an indicator that enterprise security continues to be a perceived inhibitor for cloud adoption in this region.

Regardless of these concerns, the market development outlook in MENA is upbeat. Gartner predicts that in 2019, total public cloud services spending in the MENA region will rise to $1.45 billion, with Software as a Service (SaaS) accounting for 22.6 percent of the market.

The ongoing adoption of SaaS in the region will be followed by Cloud Management and Security, and Infrastructure as a Service (IaaS) with projected year-over-year growth rates of 21 percent and 19 percent, respectively, in 2019.

Popular posts from this blog

Why Healthcare and Smart City Apps Drive 5G IoT

Fifth-generation (5G) wireless technology for cellular networks is a successor to fourth-generation (4G) wireless technology. By 2023, Juniper Research anticipates that there will be over 1 billion 5G connections globally. The technology will provide the data infrastructure for the advancement of wireless communications and for new developments in the Internet of Things (IoT) -- including smart cities and healthcare. 5G IoT Market Development According to the latest worldwide market study by Juniper Research, 5G IoT connections will reach 116 million globally by 2026 -- that's increasing from just 17 million connections in 2023. Juniper analysts predict that the healthcare sector applications and government or other smart city services will drive this outstanding 1,100 percent growth over the next three years. Juniper examined 5G adoption across key industry sectors -- such as the automotive, mobile broadband, and smart homes -- and forecasts healthcare and smart cities will accoun

How Savvy Leaders Re-Imagine Work in 2023

As we look to the year ahead, there will be significant challenges and opportunities facing the Chief Human Resource Officer (CHRO) role. In order to be successful, savvy HR leaders must be prepared to take proactive steps that adapt and evolve. "HR leaders have faced an increasingly unpredictable environment amid many organizations mandating a return to office, permanently higher turnover and burnt out employees," said Emily Rose McRae, senior director at Gartner . HR Innovation Market Development One of Gartner's key predictions for 2023 is that the use of artificial intelligence (AI) and automation will continue to increase within the enlightened digital workplace. This transition will require HR leaders to develop new skills and competencies in order to effectively manage and lead teams that are increasingly relying on these enabling technologies. Additionally, HR leaders will need to ensure that their organizations are investing in the necessary infrastructure and re

Top 10 CFO Priorities Require Rethinking Finance

The Chief Financial Officer (CFO) role is essential to digital business growth. While CFOs do not get closely involved in the tactical details of the digital transformation of their functions, they still recognize its strategic importance. According to the latest survey by Gartner, CFOs are faced with the challenge of balancing the need for substantive digital business innovation with financial cost control and risk management. "CFOs will be stretched thinly across many activities in 2023. The survey revealed a wide range of actions CFOs plan to either lead or be significantly involved with," said Marko Horvat, vice president at Gartner. Survey Findings: The Top Ten Priorities Cost Optimization - Cost reduction remains the top priority for CFOs as they look for ways to cut costs and improve efficiency in their operations. This includes identifying cost-saving opportunities through automation, outsourcing, and business process improvement. Business Continuity - The global C