Saudi IT market to top $12bn by 2016

Market was worth over $1bn last year: IDC

Tags: International Data CorporationSaudi Arabia
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Saudi IT market to top $12bn by 2016 From 2013 to 2020 about 9% of new CIO investment in Saudi will focus on third-platform technologies, according to IDC.
By  Beatrice Thomas Published  September 18, 2013

The Saudi IT market, the biggest in the Middle East, topped $1bn last year with predictions it will eclipse $12bn by 2016, it was reported.

The figures were presented by International Data Corporation (IDC) at the Saudi Arabia CIO (chief information officer) Summit in Jeddah.

Speaking at the summit, which hosted more than 150 top IT end users from across the kingdom, IDC senior vice president and chief analyst Frank Genes said from 2013 to 2020 about 9% of new CIO investment in Saudi would focus on third-platform technologies and solutions offerings, which are built on mobile devices, cloud services, social technologies and big data.

This represented just 25% of today's IT budget, he said, according to a report in the Saudi Gazette.

"Indeed, IDC believes at least 80% of the CIO's strategic energy and investments must focus on strengthening the third-platform capabilities of their departments, a surefire sign that the Saudi ICT [Information and Communication Technologies] market is making very real progress," he said.

IDC data showed that demand for cloud services in MEA continues to increase. The Saudi cloud market was expected to grow at a CAGR of 49.7% and the UAE 43.7% between 2012 and 2016.

It said the big four IT markets - Saudi Arabia, South Africa, the UAE and Turkey - accounted for more than 60% of total IT spending in the region.

Hesham Abo El-Rejal, vice-president at Schneider Electric, was quoted as saying that the five main key trends in the data centre market today were virtualisation, cloud-computing, c-location emergence, increasing energy costs and environmental issues.

"We have always been focusing on data centre usage effectiveness, so that we can provide solutions combining energy efficiency and data centre efficiency, in accordance with the current and future [trends] of the market," he said.

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