UAE managed service market to cross $971m by 2018
IDC predicts CAGR of 19.8% between 2013 and 2018
An increasing number of UAE organisations are using specialised service providers to manage their IT infrastructures, according to International Data Corporation (IDC).
An IDC report titled "United Arab Emirates Cloud-hosted Managed and Outsourced Services Market 2013 Analysis and 2014-2018 Forecast", suggests the market for managed and data centre service markets in the UAE will grow at a compound annual growth rate (CAGR) of 19.8% between 2013 and 2018 to reach a total of $971.8m by 2018.
In order to drive operational efficiency, businesses in the UAE are rapidly adopting network and desktop management services as well as managed application outsourcing services. Data centre services are also gaining a lot of interest, especially hosting infrastructure services, which include colocation, dedicated server hosting, and shared Web hosting.
"CIOs are under constant pressure to drive IT innovation and achieve higher agility," said Saurabh Verma, research manager for IT services at IDC Middle East, Africa, and Turkey.
"As the availability of skills remains a major challenge and as up to 70% of IT teams spend their time on processes related to 'keeping the lights on', CIOs and IT managers are under constant pressure to create incremental capacity for strategic IT projects.
"Given the flexible engagement models of managed services, smart CIOs are discretely identifying workloads that can be outsourced. Additionally, the service provider landscape from a maturity, availability, and service-level-agreement commitment point of view has also improved over the years. Together, these factors are playing a pivotal role in increasing adoption of managed and data centre services in the UAE."
The adoption rate for cloud services has also increased over the past few years, for both public and private models, according to Verma.
"Even though numerous organisations have reservations about the security aspects of cloud services, they are slowly testing the waters to see what can be gained from their use," he said.
"Private clouds have seen some investments from government organisations, which have either managed such deployments internally or outsourced their management processes. Public clouds, meanwhile, have seen strong growth, especially the software-as-a-service pillar."