Energy resources have been the primary engine of economic growth and national development in GCC countries. In the past decade, the Gulf region has made great strides in adopting digital technology, diversifying its efforts to expand its financial sectors and construct knowledge-based economies.
At the same time, the rise of tech-focused young customers and a developing digital landscape in the GCC countries are luring a growing number of global cloud technology companies to the area.
Although a slower cloud adoption starts compared to other foreign markets, the GCC has become one of the most dynamic cloud markets.
What are the benefits of the cloud for businesses? and why should they care about the new cloud trends?
Cloud benefits
Currently, businesses all over the world are undergoing digital transformation, with many organizations focused only on cloud migration.
These businesses are looking to the public cloud and cloud apps as a means to cut costs and improve their businesses’ responsiveness to market changes, according to Rich Davis, Head of Solutions Marketing, EMEA at Netskope.
Companies, especially those with a global presence, that are slow to adopt cloud computing will be left behind by their rivals.
In an interview with TRENDS, Davis added: “The most significant trend in the GCC is the increase in the local footprint of the major Public Cloud providers – with Amazon Web Services, Microsoft, Google Cloud, Oracle – and Netskope – all increasing their presence in the region, providing not only more choice for organizations but speed and data residency benefits, allowing more organizations including state-owned enterprises to make use of public cloud services.”
Davis explained that storing data in the cloud can be convenient. Still, it also presents new risks if not adequately protected, as sensitive information is now located beyond the organization’s control.
Cloud ad GCC countries
Due in large part to the adaptability of their digital programs, the United Arab Emirates and Saudi Arabia stand out as regional leaders.
Several programs have been launched in the United Arab Emirates to increase access to and use digital technologies.
As part of a plan adopted by the UAE Cabinet in April, the digital economy is expected to account for 20 percent of the country’s non-oil GDP by 2020. And it gave the go-ahead to establish a council on the digital economy. More than 30 initiatives, projects, and programs, as well as five new growth areas, are included in the plan.
As the cloud business grows, many major companies are setting up data centers in the GCC countries.
Although Amazon Web Services has maintained a data center in Bahrain for some time, the fact that both Amazon and Microsoft have recently invested in expanding their “regions” within the United Arab Emirates indicates the rising demand for public cloud services in the country.
In addition, Netskope has made significant investments in regional infrastructure, with data centers in the United Arab Emirates and Saudi Arabia.
Gitex and other tech-events
In Davis’s opinion, the ability to learn about new developments in the industry, compare notes with peers, and investigate potential solutions is greatly facilitated by technology gatherings like Gitex.
He added: “Exhibitions like Gitex are important as Netskope grow our presence in the GCC, enabling us to highlight our leadership in cloud security, increase awareness of our brand and solutions, and, of course, hear from local organizations better to understand their current high priority projects and challenges, all helping us to tailor our solutions to fit the local market.
At the same time, Netskope continues to grow its local presence in the region, adding to our in-region customer success team to serve our GCC customers better. This follows the recent expansion of our NewEdge infrastructure into KSA, with complete compute services in Riyadh and Jeddah, to complement our existing service locations of Dubai and Fujairah in the UAE. According to Davis, the new additions strengthen our ability to provide the fastest access to cloud resources from wherever an organization’s users are based and meet the data residency needs.