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MENA public cloud services set to grow 23% in 2014

Gartner says region ‘well-suited’ to SaaS adoption

Market research, IT Business, Gartner Incorporation

The public cloud services market in the Middle East and North Africa region (MENA) is on pace to grow 23% in 2014 to total $629m, up from $511m in 2013, according to the latest outlook by Gartner, Inc.

Software as a service (SaaS) is expected to grow 26.3% in 2014 to $123m.

"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 sub-segment of the SaaS market, CRM will contribute 30% of all spending on SaaS in the MENA region through 2018."

SaaS is expected to grow from $95m in 2013 to $307m in 2018. Infrastructure as a service (IaaS) is expected to grow from $60m in 2013 to $170m in 2018.

Gartner predicts that from 2014 through 2018, $4.7bn will be spent on cloud services in the MENA region, $1.3bn of which will be spent on business process as a service (BPaaS). While growth in cloud services is high across all segments, growth in BPaaS will be slower than other segments, with spending projected to increase 8.1% through 2018.