Sunday, 8 April 2018 Blog ehdf

Managed Cloud Services Market in the Middle East

The adoption of Managed Cloud Hosting services is fast taking root as a preferred business strategy in the Middle East. In contrast to the early years of the option being available, recent times have seen a robust and enthusiastic deployment of Cloud Computing across business verticals and sectors in the region. The Cisco Global Cloud Index – for the period 2013 to 2018 –reported that the Middle East and Africa represented the highest cloud traffic growth rate among the regions it investigated, at 54 per cent CAGR.

While some resistance to Public Cloud solutions continues to exist, Private and Hybrid Cloud services implementation has seen a steady and flourishing growth. Enterprises across the Middle East – including small and medium businesses – are acting on the cost benefits, optimized resource utilization and streamlined functional efficiencies, that Managed Private Cloud services offer. To some extent, it is apparent that further enhancement of Cloud based security remains a concern in the migration of critical business applications to the Cloud. However, businesses in the Middle East are acknowledging the advantages that Private and Hybrid Cloud Hosting offer as a strategy.

Cloud Hosting Service providers in Dubai are differentiating themselves from the Public Cloud Hosting being offered by global players, through a basket of services that focus on migrating the gamut of several routine and functional IT applications to a Managed Cloud solution.

Key factors driving the adoption of Cloud Hosting services in the Middle East

It is no longer an option for a competitive and relevant modern business to restrict its adoption of technology to specific functions and silos, within the organization. Virtually, every aspect of conducting business can now be significantly enhanced through the use of technology. This dependence of technology comes with a highly specific, increasingly complex IT environment. The cost of resources, as well as the highly specialized skills required, is best delegated to a Managed Cloud Hosting service, in favour of a leaner organization. Digital Transformation is not just a catchphrase of the day, it is emerging as a non negotiable business advantage that no enterprise can afford to ignore.

The emergence of IoT and IIoT solutions, SaaS/PaaS /Pay Per Use models and several other technological, strategic and functional innovations will very likely continue to drive adoption across every conceivable business sector in the region. The leaner, more scalable and considerable more agile business model enabled by Managed Private Cloud solutions is set to become the norm.

Challenges and Bottlenecks

Despite the near universal acknowledgement of the advantages offered by Managed Cloud Hosting solutions, security concerns and compliance requirements – including regulations that require data centers to be hosted within the region – inherently limit the options to employ the strategy.

In order to address security concerns, Managed Cloud Hosting providers in Dubai need to offer best in class security infrastructure and practices that comply with the highest international standards in service level agreements. It is often the case that Managed Cloud Hosting represents a much more secure option in comparison to several in-house deployments. Service providers need to emphasize and demonstrate these advantages in their agreements, previous history, technology and human resources, as well as delivery of services.

Emerging trends in Managed Cloud Services in the Middle East

With the demonstrated advantages of scalability, leaner operations, lowered running cost and resource allocation, the Managed Cloud Services market looks set to continue its enthusiastic uptake among the region’s businesses. Enhancements in technology – especially, but not only, centered on security – and further innovations in service models that incorporate specific concerns and allow for even more customized enhancements, should drive adoption further in coming years.