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Saudi cloud spending on the up

Saudi cloud spending to grow by 52.9%, according to IDC.

Saudi cloud spending on the up
IDC: The Saudi Arabian cloud market evolved considerably over the past 12 months

Spending on cloud services in the Kingdom of Saudi Arabia is expected to increase by 52.9% during 2014, according to the latest figures from market advisory firm IDC.

While this increase is from a low base, IDC said that its projections pointed to a greater acceptance of cloud technologies within the kingdom, despite an inherent desire among Saudi organisations to retain full control over their IT functions.

This is illustrated by the predication that Saudi's outsourcing market will grow by 16.3% in 2014, compared to 13.9% for the IT services market as a whole, IDC said.

"Saudi organisations are under increasing pressure to improve business agility, optimise IT operations, and enhance operational efficiency," said Hamza Naqshbandi, a senior research analyst for software and IT services at IDC Saudi Arabia.

"At the same time, they are critically reassessing their current positions on technologies such as virtualisation, cloud computing, and analytics, which are all gradually becoming pervasive across the kingdom. In fact, many organisations are gradually realising that outsourcing offers the potential for better-structured SLAs than the internal management of operations. Additionally, the lack of IT skills in advanced technologies like cloud computing is helping to propel the adoption of outsourcing services."

IDC said that the Saudi Arabian cloud market had evolved considerably over the past 12 months, driven by local providers and telecoms operators investing significantly in creating cloud portfolios.

"It is generally acknowledged that Saudi customers prefer providers that have a local presence, and that these customers desire close interaction during sales and project cycles," said Naqshbandi.   

"There has been an increase in local provider activity as pure-play cloud providers are increasingly partnering with local players in order to effectively gain access to the local market, especially for business development, consulting, migration, training, and onboarding."

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