The Middle East region is strongly preparing itself for the post oil era and most importantly it’s going full throttle to unlock its full potential of becoming a technology ready region and here are some points to prove that: –
1) Countries in the Middle East are looking to improve their digital economies through smart city projects, which is fueling the demand for edge computing and data center deployment. The IoT revenue in the Middle East is expected to grow at a CAGR of over 15% by 2025. Also, the adoption of 5G networks has commenced in the region. The Middle East Data center market is expected to cross 3% in revenue by 2025.
2) Demand for Data Centres has been underpinned by technological advances and an increasing adoption of cloud-based services. As AI, ML & 5G trends play out, the levels of data produced, stored and analysed will grow exponentially, which will drive significant demand for Data Centres.
3) The Middle East Cloud application market is expected to grow by USD 4.5 Billion by 2024 at a CAGR of 17.5%. Localisation of Data Centres will be required going forward for the Middle East thus it will become a key market for cloud based on-demand computing service providers.
The above points prove that yes, the middle east region is adopting fact to tech and adoption is high but there are still challenges as well as opportunities on the road to become a technology leader like: –
1) Many organizations in the Middle East believe that their digitization process is taking much longer and many feel that their organizations would benefit from hybrid cloud adoption to overcome operational & talent challenges.
2) The Middle Eastern region in general has ambient conditions which can take a major toll on the efficiency of data centres. Two of the main factors include temperature and dust which has a negative effect of efficiency. Building of Operationally efficient and localized hyperscale & sustainable data centers is an urgent need for the Middle East region.
3) There is a huge skills gap for IT personnel in the region. More often these roles are outsourced and at times may not be available locally. The region has to make some concerted efforts in ensuring that these technical skills are nurtured and in turn work towards a stronger industry.
4) Security practitioners in the Middle East are concerned with data privacy and security, ITO practitioners are interested in operational efficiency, and CEOs and CFOs promote cost savings. So how can these key stakeholders meet half-way – that’s the question of the hour.
As a tech enthusiast In order to make sure you are well versed with these updates W.media has created the largest platform for Middle East tech enthusiasts to join together and get insights from the top experts of the world.
Welcome to W.Media’s Middle East Cloud and Data Center Market Insights on the 31st of May, 2021.