SAP to set up $76m public cloud hub in Saudi Arabia
SAP Cloud Hub with MCIT will help to deliver Saudi Vision 2030
SAP has announced a SAR285 million ($76m) investment to create a public cloud hub in Saudi Arabia.
The SAP Cloud Hub will be established in collaboration with the Saudi Ministry of Communication & Information Technology, to help deliver Saudi's Vision 2030 and digital transformation plans.
The investment of SAR 285 million will happen over a period of four years, and the SAP Cloud Hub will comprise of four key pillars: the establishment of a public cloud data centre in the Kingdom; an open platform for local developers; a co-innovation centre to support Saudi startups and customers from both large enterprises and small- and medium-sized enterprises, and further localisation of SAP solutions to support Saudi's economic diversification goals and government investment.
The agreement to establish the cloud hub was signed during the recent trade mission by German Chancellor, Angela Merkel, to the Kingdom.
As part of the announcement, the Ministry of Economy and Planning and Ministry of Communication and Information Technology represented by the National Digitization Office will work with SAP to explore integrating the SAP Cloud Hub into the planned government cloud, in order to further enhance government efficiency, employee productivity, and citizen services.
"Saudi's public and private sector organisations need to adopt latest technology innovations to enable new digital business models and enhance the Kingdom's economic competitiveness. In a digital economy era, more public-private partnerships and co-innovation are crucial to fuel a diversified economy and spark the next wave of Saudi talent and entrepreneurship," said Deema Al-Yahya, Acting Head of the National Digitization Office.
Organisations running solutions on the SAP local data centre can securely analyze data in-country for real-time decision-making. Analysts agree the data centre will make a major impact in supporting the transformation of Saudi industry verticals such as banking and finance, construction, manufacturing, public sector and retail.
"With the SAP Cloud Hub, the Kingdom will accelerate government-led digital transformation and diversified economic growth. SAP is leveraging global best practices in supporting the Saudi government and organizations of all sizes and industries to use secure, localized cloud solutions to simplify operations, cut costs, and drive agile business models, and unprecedented collaboration," commented Ahmed Al-Faifi, managing director, SAP Saudi Arabia, Bahrain, Yemen.