SAP announces 300% increase in cloud deals
Cloud computing said to be 'having a huge impact on the way business is run in the UAE'
SAP has today announced a 300% increase in cloud deals in the MENA region from 2012 to 2013.
The announcement, which was made at the SAP Forum and SUGMENA Conference in Dubai follows on from a strong first quarter for the company's global cloud business. Non-IFRS Cloud Subscriptions and Support Revenue were recently reported to have increased 38% at Constant Currencies (32% at Actual Currencies).
SAP's cloud applications total subscribers exceed 36 million, which according to SAP is the most of any vendor in the industry today.
"Cloud computing is here to stay, and it is having a huge impact on the way businesses in the UAE and beyond run and plan for the future," said Sam Alkharrat, Managing Director, SAP MENA.
"Businesses in the region are turning to us for cloud solutions more than ever before, and the reason is simple. The cloud is not just about Total Cost of Ownership (TCO) anymore. And it's not just about IT. We've now entered an era where major technology decisions are made outside of the IT department and the office of the CIO. Today's cloud is about driving business innovation and agility, enabling new processes and insights that were previously impossible."
Alkharrat's comments come after IT research and advisory firm Gartner's prediction that the Middle East and North Africa region's public cloud services market is on track to grow 21.3% in 2014 to total $620 million. By 2017, it will hit $1.1b. Gartner estimates that from 2013 to the end of 2017, $3.8b will have been spent on cloud services in MENA region. Meanwhile, according to the Cisco Global Cloud Index, the Middle East and Africa region is set to post the world's-strongest cloud traffic growth rate from 17 exabytes in 2012 to 157 exabytes in 2017.
"Organisations in the region now more than ever understand how cloud can be better leveraged for cost savings while gaining benefits around flexibility, scalability and, most importantly, faster deployment of solutions or IT resources. As vendors and the channel launch more cloud services, while addressing customer concerns around security and service quality, the confidence in the adoption of cloud is only expected to rise further.
"Large organisations and SMBs can now move certain functionalities into the cloud while retaining more critical applications and systems onsite, enabling them to achieve both cost and management benefits," said Megha Kumar, Research Manager, Software, IDC Middle East, Turkey and Africa.