
How MEA Businesses Are Adopting Cloud Technology for Competitive Advantage
We have progressed past the point where using the cloud is just beneficial – it has become necessary for businesses as they operate in today’s digital economy.
Remote work, better data analysis and cybersecurity, and the goal of building more efficient and strong supply chains are some of the driving factors behind the adoption of cloud technology.
In the Middle East, almost 68% of companies indicated that they intend to move most of their operations to the cloud in the next two years. MEA businesses are increasingly adopting cloud solutions.
Adoption of Cloud Technology and Driving Factors in MEA
In the Middle East, cloud adoption is influenced by a mix of global trends, specific industry needs and local circumstances. Factors such as national initiatives, digitization of services and data localization legislation are some of the drivers of cloud adoption.
Middle Eastern countries have created clear national plans, like Saudi Vision 2030 and the UAE Centennial 2071, that outline specific objectives for technology growth. Cloud technology is essential for reaching these goals, assisting businesses in simplifying their operations, enhancing efficiency, and fostering innovation.
The region is also leading the way in creating smart cities as part of its large projects, using cloud technology to support smart infrastructure. This involves efforts to improve public services, use smart traffic management, and encourage better connectivity.
Saudi Arabia and the UAE are leading the way in implementing laws mandating the retention of specific types of data within their borders. Local data centers that use the cloud assist companies in fulfilling their compliance requirements.
Big cloud service providers are taking advantage of this trend by opening cloud data centers throughout the area. The three leading global cloud providers, Azure, AWS and GCP, are expanding into Saudi Arabia. Google Cloud launched its Saudi Arabia Region in 2023, while Microsoft and AWS have announced plans to invest in cloud data centers in the country over the next few years.
How Businesses Use Cloud Technology
Organizations in the Middle East are discovering increasingly creative ways to utilize cloud technology. 90% of companies in the area have progressed past the basic strategy of just transferring existing applications to the cloud. They are now updating their applications and/or developing new solutions designed specifically for the cloud.
The cloud promises to reshape industries and redefine the possibilities of the digital age. The following trends show a major change in how businesses in the Middle East are using cloud technology and solutions to grow and remain competitive in a fast-changing world.
- Multi-cloud Adoption and Industry Cloud
Organizations are starting to expand their cloud options by using different providers and mixing on-site infrastructure with public and private clouds. It helps them improve performance and security while keeping costs low.
The general cloud solution is being replaced by more customized options as specific digital systems start to develop, designed to meet the distinct needs and rules of different industries, such as healthcare, finance, and manufacturing.
- Edge Computing
Edge computing refers to processing data closer to where it is generated rather than relying on a centralized data center. This approach helps reduce latency and improve response times for applications and services. Edge computing shifts computer storage and processing to the edge of the network, bringing it closer to data sources. This approach will be crucial for the future of cloud adoption as the Internet of Things (IoT) continues to grow. Cloud platforms will increasingly include edge computing features, making the most of IoT applications.
- Quantum Computing
Cloud-based quantum computing is making advanced technology accessible to everyone. Bringing quantum computing into the cloud will allow businesses to tap into amazing computational power.
- DevSecOps and Tools
The adoption of cloud-native tools, DevSecOps, microservices, and serverless computing will increase. This will allow developers to focus solely on code creation, reduce operational overheads, and enhance agility. It is expected to become the preferred model for deploying lightweight applications on the cloud, encouraging rapid innovation.
- AI and ML
Cloud providers are already offering AI and ML services. Still, cloud platforms’ scalability and accessibility make them ideal for deploying large-scale AI and ML workloads, which will redefine business operations.
- Blockchain as a Service (BaaS)
Cloud platforms will make it easier to set up and manage blockchain networks, helping businesses create secure and clear decentralized solutions.
- Metaverse and Digital Twins
The combination of the metaverse and digital twin technologies, supported by cloud computing, has great potential to change how we engage with virtual spaces and mirror real-world locations in the digital world.
Landscape of Cloud Computing and Associated Challenges
The significant increase in the use of cloud computing technologies is not just altering the technology scene but also creating new chances and boosting economic growth.
A recent report by McKinsey states that the public cloud sector in the Middle East is a multibillion-dollar opportunity that is ready to be tapped into.
Let’s take a closer look at the statistics regarding the changing cloud computing scene in the Middle East:
- By 2030, the region might gain an extra $132 billion in value from the top 600 privately held and publicly traded companies just from revenue growth driven by cloud technologies.
- The public sector currently accounts for 20% of the region’s GDP and can greatly benefit from using cloud technology.
However, the path to adopting cloud technology comes with some challenges. Companies encounter financial and operational challenges when moving their operations to the cloud.
A worldwide survey of CIOs and IT decision-makers showed that 75% of those surveyed exceeded their budget during the migration process. Also, 38% faced delays that exceeded their original timelines.
These challenges highlight how crucial it is to plan carefully, execute well, and manage cloud projects continuously.
Conclusion
Cloud computing is changing the business scene in the Middle East, giving organizations new chances for innovation, growth and a competitive edge. It has changed how businesses work, providing unmatched flexibility, scalability and efficiency. Organizations can take important steps to fully utilize the cloud, leading to innovation, growth, and a competitive edge.
Businesses can tackle challenges, maximize the benefits of the cloud, and succeed in the digital age by using cloud technologies and collaborating with management and tech consultants at Arthur Lawrence. As the MEA region progresses in digital technology, cloud computing will remain an important element in its success, driving economic growth, digital transformation, and prosperity for many years ahead. Consult today to learn more!