Over the past decade, the UAE has witnessed an unprecedented surge in cloud computing adoption across various sectors. This trend shows no signs of slowing down, as nearly every industry in the UAE now relies on one or more forms of cloud computing for their day-to-day operations. According to GMI Research’s latest report, the UAE Cloud Computing market is projected to grow at a CAGR of 38.2% from 2020 to 2027.
UAE Cloud Computing Market Segmentation:
By Service Model:
- Infrastructure as a Service
- Platform as a Service
- Software as a Service
By Deployment Model:
- Public Cloud
- Private Cloud
- Hybrid Cloud
By Organization Size:
- Small and Medium-Sized Enterprises
- Large Enterprises
- Database Management
- Integration and Orchestration
- Storage, Backup, and Disaster Recovery
- Business Analytics
- Enterprise Resource Management
- Application Development and Testing
- Collaboration and Content Management
By Industry Vertical:
- IT and Telecommunications
- Healthcare and Life Sciences
- Government and Public Sector
- Media and Entertainment
- Energy and Utilities
- Retail and Consumer Goods
- Banking, Financial Services, and Insurance
Cloud Computing Key Developments in the UAE:
- Jan 2020: IBM inaugurated two data centers in Dubai and Abu Dhabi, fortifying their regional presence.
- Jul 2019: Amazon Web Service introduced three data centers in Bahrain and UAE, expanding its footprint in the Middle East.
- Jan 2019: Microsoft launched two regional cloud services from its new data centers in Dubai and Abu Dhabi, further strengthening the cloud ecosystem.
Factors Driving the Growth of Cloud Computing in the UAE:
CSPs’ New Data Centers:
The establishment of local data centers by various Cloud Services Providers (CSPs) has significantly driven cloud computing adoption. Businesses are more inclined to leverage the cloud when data centers are in close proximity.
The UAE government has launched initiatives like the National Innovation Strategy, TRA Vision, and visions for 2021 and 2030. These programs promote electronic transformation, innovation, and smart city initiatives, all of which stimulate cloud computing usage.
Data Value Extraction:
Cloud computing facilitates the extraction of data value through technologies like blockchain and Artificial Intelligence (AI). As data generation surges, technologies such as AI and ML become imperative, intensifying the need for cloud computing.
Hybrid Cloud Adoption:
SMEs in the UAE are increasingly adopting the hybrid cloud model due to expanding operations, resource mobility, and the growing prevalence of cloud migration.
YVOLV, a joint venture between Alibaba Cloud and MERAAS in the UAE, plays a pivotal role in advancing cloud computing solutions in the region. Through strategic partnerships and cutting-edge technology, YVOLV is contributing to the exponential growth of cloud computing across various industries.
Cloud computing in the UAE has evolved into a cornerstone of modern business operations. With strategic initiatives, local data centers, and advancements in technology, cloud computing is set to continue its remarkable growth trajectory in the region. As a result, businesses across diverse sectors are reaping the benefits of enhanced efficiency, security, and scalability.