Press Release Description
The Middle East & Africa Private Cloud Services Market to Showcase Noteworthy Growth with the Flourishing IT Sector
The Middle East & Africa Private Cloud Services Market is projected to grow at a CAGR of around 28.77% during the forecast period of 2023-28, cites MarkNtel Advisors in the recent research report. In the Middle East, including countries like the UAE, South Africa, and Saudi Arabia, there has been a concerted effort to drive digital transformation and economic diversification. This involves a strategic focus on bolstering service-oriented sectors, notably the IT industry.
Central to this endeavor, the governments of these nations have made substantial investments in innovation hubs, technology parks, and similar initiatives that cultivate an environment conducive IT growth. Notably, this has led prominent companies such as Microsoft, IBM, and Telekom to expand their presence within the region. This upsurge in the IT sector has generated an amplified requirement for adaptable and scalable IT resources. Consequently, private clouds, renowned for their heightened scalability, reliability, performance, and cost-effectiveness, have emerged as the favored IT infrastructure solution for enterprises operating within the region.
Moreover, countries like South Africa, the UAE, and others have undertaken extensive initiatives to embrace emerging AI technologies at a rapid pace. Hence, with the trajectory of AI technologies on the rise within the IT sector, the demand for private cloud solutions is poised to experience a pronounced uptick. This is attributable to the intensive computing power and storage requirements of AI applications, which necessitate significant resources for processing voluminous data sets and executing intricate computations.
Moreover, government support for small and medium-sized enterprises (SMEs) growth is also growing in nations like the UAE, Saudi Arabia, Egypt, etc. For instance,
- In 2023, the Egyptian government announced plans to invest USD64 million in assisting small and medium-sized firms. In line with this, banks are required by government rules to provide 25% of their lending facilities to SMEs operating in the nation.
Owing to this, SMEs are predicted to grow in the upcoming time period in accordance with the appropriate government assistance. As a result, they would create an opportunity to increase the demand for private cloud solutions in the region, further states the research report, “The Middle East & Africa Private Cloud Services Market Analysis, 2023.”
Software-as-a-Service (SaaS) to Continue to Retain its Dominant Position in the Market
Software as a Service (SaaS) holds a considerable share in the Middle East & Africa Private Cloud Services Market due to its increased adoption by organizations in the healthcare and education sectors. SaaS-based learning management systems (LMS), student information systems (SIS), and virtual classroom platforms have been used by educational institutions to expand online learning capabilities and streamline administrative procedures.
To maintain & improve operations, patient care, and data security & privacy, hospitals, clinics, and healthcare organizations in the area have embraced SaaS-based electronic medical records (EMR), practice management, and telemedicine tools. This rising use of software as a service (SaaS) has led to many SaaS companies announcing their intentions to expand operations. For instance,
- In 2022, after its expansion to Saudi Arabia, software-as-a-service (SaaS) firm Clear announced its plan to expand to the rest of the five GCC countries starting with UAE, Bahrain, Oman, Qatar, and Kuwait.
Moreover, this momentum is expected to persist, with the financial, retail, and healthcare sectors poised for sustained adoption. This is particularly due to the precise alignment of SaaS with the unique security requisites of these industries, through which it would cater effectively to the intricate security demands of these sectors.
Saudi Arabia to Hold a Prominent Share in the Middle East & Africa Private Cloud Services Market
Geographically, Saudi Arabia has been one of the largest economies in the region with a sizeable investment channelized towards the adoption of digital technologies. The government's strategic efforts to revitalize businesses across the nation, coupled with a notable surge in foreign direct investment (FDI), have instigated an amplification of the commercial landscape. This surge in diversified economic activities has naturally resulted in an augmented number of enterprises spreading across the region.
In consequence, the private cloud services market has also witnessed an expansion of its consumer base during this historical period. Furthermore, government investments for the digitalization of the economy are also on the rise which would be conducive to the upsurge in the establishment of commercial businesses in Saudi Arabia. This would generate an opportunity to upscale the demand for private cloud solutions in the coming period.
With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players, including Amazon Web Services, Inc., Cisco Systems Inc., Dell Inc., IBM Corporation, SAP SE, VMware Inc., Microsoft Corporation, Hewlett Packard Enterprise, Databricks, OpenStack, Tencent Cloud, and Others are looking forward to strengthening their market position.
Key Questions Answered in the Research Report
- What are the industry’s overall statistics or estimates (Overview, Size based value, Forecasted numbers, Segmentation, Share)?
- What are the trends that have shaped the industry to its current form?
- What key factors would propel and impede the industry across the region?
- How has the industry been evolving in terms of geography & product adoption?
- How has the competition shaped across various countries, followed by their comparative factorial indexing?
- How have buying behavior, customer inclination, and expectations from product manufacturers evolved during 2018-28?
- Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?
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