Cloud applications are easier to implement and offer scalability and flexibility. They also help businesses focus on their core business. These services reduce the costs of IT infrastructure, hardware, and skilled resource hiring.
Middle East And The Adoption Of Cloud Applications
Cloud applications such as Oracle Cloud are expected to be adopted in the Middle East due to these benefits.
The Collaboration And Content Segment Will Grow Rapidly During The Forecast Period
Cloud Enterprise Content Management (ECM), which allows SMEs and large companies to digitize their operations, has become more popular due to its benefits. These include easy implementation, lower operating costs, and more storage space. Cloud ECM provides a central repository for integrated information that allows staff to work remotely at any time and improves productivity.
Cloud collaboration allows users to share documents and files that are stored in the Cloud. They can then be accessed via cloud computing. Cloud collaboration solutions allow enterprises to store their data in a central repository while also ensuring optimal security. Cloud-based collaboration tools have allowed multiple users to edit documents online and share them with the increase in user base in real-time.
BFSI Will Have The Largest Market Share Among Verticals
BFSI (Banking, Financial Services, and Insurance) is rapidly adopting digitalization to keep up with the high level of competition and meet customer expectations. Cloud-based services allow vendors to meet IT requirements efficiently, and they save on Capital Expenditure (CAPEX) as well as Operating Expenditure (OPEX). The banking sector must store and manage confidential customer information such as credit card numbers, transaction details, and personal details. These data need to be stored securely, as losing them could result in a loss of customers and a decrease in brand value. Cloud computing is becoming more popular.
Saudi Arabia Will Be The Biggest Market During The Forecast Period
Saudi Arabia is a leading investor in IT technology in the Middle East. Although the growth of cloud applications in Saudi Arabia is relatively slow compared to other countries with advanced technology, there are positive signs that Saudi Arabian enterprises have shown a willingness and interest in using cloud-based apps.
Cloud applications are mainly driven to grow by initiatives taken by local governments in order to encourage the adoption of new technology and raise awareness among businesses about the benefits of cloud-based applications. Vendors of cloud applications are concentrating on expanding their footprint in Saudi Arabia through collaborations with regional suppliers. This is expected to further drive the adoption of cloud-based enterprise applications in the country.
Key Market Players
The major vendors of cloud applications in the Middle East are SAP (Germany), Oracle, Microsoft, Salesforce, IBM, Epicor, and QAD US. The report examines the strategic alliances and acquisitions that have been made by local and international players within the cloud ecosystem.
Oracle Products and Services have mainly adopted a strategy of partnerships in order to increase their business in the Middle East cloud application market. They also launched new products in order to meet the diverse needs of end users from across the region.
Scope Of The Report
This report analyzes and forecasts revenue in the Middle East Cloud Applications Market.
The Middle East Cloud Application Market Is Segmented Based On The Applications
- Enterprise Resource Management (ERM).
- Customer Relationship Management (CRM).
- Human Capital Management (HCM).
- Supply Chain Management (SCM).
- Business Intelligence and Analytics.
- Collaboration and Content Management.
- Other (PPM & Engineering Applications).
The Middle East Cloud Application Market Is Segmented Based On The Size Of Organizations
- Small and medium-sized enterprises (SMEs).
- Large Enterprises.
The Middle East Cloud Application Market Is Segmented Based On Verticals
- Banking, Financial Services, and Insurance.
- Energy and Utilities.
- Government and Public Sector.
- Healthcare and Life Sciences.
- Manufacturers.
- Retail and Consumer Goods.
- Telecommunications.
- Other (Education, Travel and Hospitality, Media and Entertainment).
The Middle East Cloud Application Market Is Segmented Based On Region
- Saudi Arabia
- UAE
- Qatar
- Rest of the Middle East
Recent Developments
- SAP Cloud Platform added new cloud services in October 2018. These services allow customers to connect their demand chains with their supply chains easily, comply with new privacy and cybersecurity regulations, and offer an enhanced cloud environment to business-critical apps. The company's goal is to deliver intelligent enterprises by delivering enterprise software that has the visibility, focus, and agility needed for rapid change.
- Microsoft expanded its Azure Cloud Services in March 2018 to the Middle East and Europe. In Abu Dhabi and Dubai in the UAE, it is increasing its investment. It also announced plans to extend its cloud service providers for customers in Germany.
- Salesforce announced in June 2019 that it would acquire Tableau Software for USD 15.7 billion. This acquisition will allow customers to make better decisions and accelerate innovation in all areas of their businesses.
The Report Addresses Key Questions
- What is the trend in cloud adoption in the Middle East region?
- What are the challenges facing cloud application vendors in the Middle East region?
- What is the latest development in the Middle East cloud application market?
What Is The Growth Rate Of Cloud Computing Applications In The Middle East?
From 2019 to 2024, the Middle East cloud applications market will expand at a rate of 17.5% per year, reaching USD 4.5 billion in 2024. Saudi Arabia will be the largest market by 2024 due to its increasing adoption of cloud technology across all industry verticals. CRM applications are expected to grow faster as they provide a vast network of enterprises with a way to manage relationships efficiently and identify new leads and potential customers.
It is anticipated that the adoption of CRM applications will increase because they offer benefits such as improved sales productivity, customer satisfaction, customer retention, and increased efficiency. The market is dominated by a few vendors, including Microsoft (US), AWS(US), Infor(US), Oracle(US), SAP (Germany), Google Cloud, and IBMUS. In the next few years, the market is expected to be shaped by trends such as serverless computing. Containerization, edge computing, and hybrid cloud architectures.
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How Is Oracle Leading The Middle East Cloud Revolution?
Oracle announced plans to create a third public cloud area in Saudi Arabia. This will help meet the rapid growth of demand for cloud services. Oracle plans to invest $1.5 billion in expanding cloud infrastructure in Saudi Arabia. The new cloud region, located in Riyadh, will be part of this investment.
Oracle will add the new cloud region to Riyadh, which will be joining its existing cloud region located in Jeddah as well as a cloud region planned for NEOM. Oracle will expand capacity in the Jeddah Region, which was opened in 2020. UAE and the Middle East are priority regions for Oracle. CloudWorld Tour, Oracle's flagship annual event, will be held in Abu Dhabi on the 3rd of May. This is to support the digital economy growth in Abu Dhabi and UAE.
Oracle is committed to helping the UAE achieve its goals with cloud technologies, and we're delighted to bring this event to Abu Dhabi. Oracle Cloud World Tour Abu Dhabi provides an inside look at the latest innovations in cloud tech, databases, and applications across diverse industries to help organizations solve their most complex challenges.
Oracle Cloud's growth in the Middle East has been phenomenal over the last few years. Hundreds of new cloud features and services have been rolled out. Oracle Cloud is used by organizations across the Middle East to run mission-critical workloads. The company invested in the third data center due to the ongoing demand in the region and as a preparation for future growth.
Oracle has been the sole cloud adaptor in the Kingdom and has already set up two data centers within the Kingdom. The first was in Jeddah, and then Oracle Invested in NEOM. Now they have invested 1.5 billion dollars in their third data center in Riyadh. They will expand the Jeddah area because Saudi Arabia has a strong focus on digital transformation. The cloud update, in particular, is very good, so Oraclecan expect to see more growth in the future.
Oracle has had a large presence in the KSA for many years. They have been in this country for 30 years and have loyal, happy customers here - from the telcos to the banks and the public sector. The government is pushing hard for digital transformation, which has made the industry more agile.
Read More: Oracle Develops Cloud Customization Strategy In Line With Key Trends
What Oracle's Cloud Growth Implies For Middle Eastern Firms?
It is clear that businesses are accelerating their pace to keep up with the competition. This race has been driven by technology, with the Cloud being a major talking point over the last few years. Many organizations are still skeptical about this technology. However, others have realized the many benefits it offers, such as higher ROI, improved customer service, and cost savings.
A report has revealed that cloud spending has increased 22 percent in the past year and is expected to reach US$4 billion by 2023. Oracle, the global leader in cloud computing, is one of the main drivers of this growth. Oracle, a global leader in the cloud market, recently announced its plans to migrate all 4000 of its Middle East & Africa regions' on-premise customers to the Cloud within two years. In February, it opened a data center in Abu Dhabi with plans to open more in the UAE or Saudi Arab region.
Oracle's growth in the UAE, Middle East, and Africa is a result of the phenomenal success of its customers. This growth has been further enhanced by the rapid adoption and use of cloud solutions. Our customers can do things that they have never been able to do before. Our customers can do things that they have never done before.
Oracle has some of the most successful and largest organizations in the Middle East as clients, such as Emaar Group, Abu Dhabi Department of Finance General Administration of Customs Landmark Group, and Emirates NBD. Oracle's clients are diverse organizations with various business goals. However, they all share a common goal: to give their customers everything they need to create their own cloud journey.
The Oracle cloud cost calculator gives customers the power to create their own map for cloud success. Not just one but a virtually unlimited number of roads and paths that they can design, shape and redraw in new and powerful ways as their business grows and changes. Cloud future is less about limitations and more about reimagining people, processes, and progress. Each company has its own unique journey. The cloud journey is not a straight line. Oracle addresses the unique business, and IT needs of each customer by offering them an unparalleled selection.
Cloud adoption in the MENA region is not without its challenges. Despite growing at an unheard-of rate, it is still lagging behind that of the United States. It is not expected to catch up with the US level of cloud usage until 2023. Many organizations are still resisting the Cloud and don't feel ready to make this necessary leap on their digital transformation journey.
Businesses can't wait too long, as they risk being overtaken by their competitors very soon. Oracle is focused on helping businesses overcome obstacles such as a lack of qualified resources or reluctance to adopt the technology in order to begin their transformation journey. In the UAE, Oracle has launched the first innovation hub of its kind dedicated to Artificial Intelligence.
In the last year, this hub has hosted training and sessions for joint use cases with UAE government officials and executives from other countries. Oracle has also taught 500 Higher Colleges of Technology students in the UAE about emerging technologies such as AI, Blockchain, and Machine Learning. Oracle gives every customer the option to create their own cloud success map.
Oracle has also set up 'Future Ready Labs' in the region to help customers who are currently using an on-premises system transition to the Cloud. In collaboration with Oracle enterprise expertise, customers on-premises explore the potential of Cloud technology assistance to meet their current and future challenges. Businesses can, in a way, visualize their future in a Cloud-based environment and explore new growth opportunities. These labs are located in Dubai and Johannesburg.
Oracle's success can be seen. However, this does not mean that the IT leader rests on its laurels. Oracle's UAE market is a top priority, and its plans do not show complacency due to its business success.
They have invested significantly to improve their digital infrastructure, physical location, human resources, and other support abilities in the country. Oracle accelerates the pace of bringing its Cloud infrastructure to our customers worldwide. They announced plans to launch a total of 36 Oracle Cloud Infrastructure Regions. This will include 20 new Oracle Cloud Regions.
This expansion will include the UAE and Saudi Arabia, where Oracle plans to establish two new Cloud Data Centre regions in each country. Oracle hopes this will facilitate disaster recovery capabilities within the respective countries or jurisdictions. Oracle's commitment to the Middle East is strong. They are a market leader. When it comes to Oracle cloud vs aws vs azure Oracle is better positioned than ever to serve its customers both locally and globally, thanks to the rapid adoption of technology cloud and cloud computing in the Middle East.
Connectivity
In the current digital experience economy, connectivity is essential to bringing customer experiences alive. Customers are now the real innovators in our landscape. They push brands constantly based on what they expect. This is an urgent problem, but it can be easily solved if companies connect their data, intelligence, and experience to one platform. In this environment, silos are not possible. Customers do not see your company as a collection of departments. They see a single business and expect unified service. Anyone can be connected; it only takes the right software and mindset to make everything work.
To make the most out of being connected, you need to first understand the needs of your customers and then use that information to create highlight solutions. In the online experience economy, all businesses must adapt to be successful. This means that they need to become connected as soon as possible.
Data
Data can provide you with all the information that you need to achieve your organization's goals. You can use data to improve your decisions in every aspect of business. You can use it to better understand your customers' needs, wants, and future desires. Data can be used to deliver a wide range of products and services that are tailored to the individual's needs. You can streamline your business operations and processes.
But data on their own is pretty useless. What matters is how you use and understand the data to make an impact. It's not necessarily the largest or wealthiest businesses that will survive in the big data age. Those who have the capability - and willingness - to adapt, transform, and innovate will survive. It is essential to be able to understand and use data, as well as access it. Data strategy is essential for future readiness and for being ready now.
