Thursday, 15 May 2014 ehdf

Future Of Cloud Hosting In The UAE

In recent years, cloud technology has gained immense attention worldwide and it is predicted that it will grow further in the coming years. In the UAE, the market is in a growing state and adoption of cloud services is increasing.

After much hype and security apprehensions about cloud computing, business owners have finally understood the importance of cloud services and how these can bring business benefits.

According to industry research, cloud spending in the UAE is going to increase at an annual growth rate of 43.7 percent till the end of 2016. These stats reflect that there is a lot of scope for cloud services in the UAE to grow.

Cloud services provide many benefits such as rapid deployment of IT resources, shared resource usage and the ability to monitor usage and pay on a monthly subscription model.

UAE is also experiencing tremendous growth in various industry sectors especially the SME sector. According to a report released in January 2014 by the Dubai SME, the agency of the Department of Economic Development mandated to develop the small and medium enterprise (SME) sector. The total contribution of SMEs to Dubai’s gross domestic product stands at 40 per cent. These enterprises are a growing presence in sectors that drive growth in Dubai; sector-wise, trading SMEs account for 47 per cent of the total GDP contribution with services and manufacturing following with 41 per cent and 13 per cent respectively.

Cloud computing can phenomenally decrease a SMEs overall costs including capital costs and ongoing operational costs as it is a usage based pricing model. With cloud services, the SME owner can reduce their overall risks by paying on a predictable monthly subscription model. In addition, cloud enables an SME business to deploy services faster and dynamically provision any additional capacity as and when needed. Moreover, cloud based services are simple to adopt and more accessible as they are accessible over the internet.

With the growing market and emerging new businesses, UAE’s cloud hosting sector is set on the path of growth.

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