The Persian Gulf’s March to the Cloud Presents Global Opportunities

The Persian Gulf's March to the Cloud Presents Global Opportunities

November 22, 2023 at 10:05AM

The GCC’s rapid expansion of digital infrastructure necessitates the establishment of numerous hyperscale data centers. Although the region traditionally preferred to keep confidential data within sovereign borders due to cultural and regulatory concerns, attitudes have shifted since the pandemic. With increasing adoption of cloud storage and the availability of local cloud options, the Middle East public cloud market is expected to reach $9.9 billion by 2027. Concerns about data privacy and security have led to the development of solutions that allow businesses to harness the benefits of global hyperscale providers while keeping data within the region. This has fueled a growing market for cybersecurity services in the region.

Key takeaways from the meeting notes:

1. The Gulf Cooperation Council (GCC) is rapidly expanding its digital infrastructure, and hyperscale data centers will be essential for its success.
2. Traditionally, Gulf states have been hesitant to store confidential data outside their sovereign soils due to cultural and regulatory concerns.
3. However, attitudes towards public cloud storage have started to change since the pandemic, with government and business leaders recognizing the benefits of flexibility, scalability, and security.
4. The region’s rapidly digitizing banking and transport sectors, as well as the adoption of technologies like AI, IoT, 5G, and cybersecurity, are driving the mass migration to the cloud.
5. The Middle East public cloud market is expected to reach $9.9 billion by 2027, with a CAGR of 20.7% during this period.
6. Gulf states, such as Bahrain, the UAE, Saudi Arabia, and Qatar, have signed deals with global hyperscale data center providers like AWS, Microsoft Azure, Oracle, and Alibaba.
7. Concerns about data privacy, security, and regulatory compliance still exist, leading to the development of solutions that allow businesses to benefit from global hyperscale providers while keeping data in the region.
8. Local cloud data service partners are enabling businesses to comply with regulatory obligations while moving their contact centers to the cloud.
9. The growing preference for the public cloud in the region is creating opportunities for cybersecurity services and local players are entering the market.

Please let me know if there’s anything specific you would like me to focus on or any further information you need from these notes.

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