MENA public cloud market on track for 23% growth
MENA cloud spending to total $629 million in 2014, says latest Gartner report
The MENA public cloud services market is set to grow by 23% in 2014, reaching $629 million from $511 million in 2013, according to the latest outlook from Gartner.
Software as a service (SaaS) is expected to grow to $123 million, up 26.3% from last year’s $95 million. By 2018, Gartner predicted that the MENA SaaS market will reach $307 million.
“The Middle East and North Africa region has been a market well-suited to SaaS adoption,” said Ed Anderson, research vice president at Gartner.
“Growth in the SaaS markets will continue to be led by usage of customer relationship management (CRM) offerings, which is expected to grow 49% in 2014. In addition to being the highest=growth subsegment of the SaaS market, CRM will contribute 30% of all spending on SaaS in the MENA region through 2018.”
Meanwhile, infrastructure as a service (IaaS) is expected to grow from $60 million in 2013 to $170 million in 2018.
Overall, Gartner predicted that, from 2014 to 2018, $4.7 billion will be spent on cloud services in the MENA region, $1.3 billion of which will be spent on business process as a service (BPaaS). That said, while growth in cloud services is high across all segments, growth in BPaaS will be slower, with spending projected to increase 8.1% through 2018, Gartner said.