Cloud technology adoption rise in Middle East, paving way for large growth

(MENAFN) The Middle East is on the cusp of experiencing accelerated growth in cloud technology adoption, as it moves beyond the initial stages of technology integration and begins to reap tangible benefits, according to the latest report jointly issued by Strategy& and PwC Middle East. Titled "Cloud Technology in the Middle East: New Opportunities for Businesses and Cloud Service Providers," the report highlights the region's potential for substantial growth in the cloud technology sector, driven by the value it offers to businesses.

This comprehensive analysis draws insights from a survey involving 420 business leaders and technology specialists across various sectors in the two largest cloud technology markets in the Middle East: the United Arab Emirates (UAE) and the Kingdom of Saudi Arabia. It posits that should the Middle East successfully align with the cloud technology market maturity levels of Europe, technology vendors could potentially achieve revenues of approximately USD5.6 billion. If the region can attain the maturity benchmark of the North American market, the potential new revenues in the cloud technology sector may reach up to USD14 billion.

The report underscores the notable progress made in cloud technology adoption within the region. An impressive 85 percent of companies in the Middle East have initiated their transformation journey towards cloud technology. Among them, 32 percent have incorporated technology into at least one operational aspect of their business, while 35 percent have adopted it in multiple areas. Furthermore, 18 percent of companies have advanced to the stage of extending technology usage across all aspects of their operations. Looking ahead, the report reveals that 68 percent of Middle Eastern companies are planning to migrate the majority of their operations to cloud technology within the next two years. To support these initiatives, 80 percent of these companies intend to increase their budget allocations for cloud technology over the next year.

The findings in this report suggest that the Middle East is positioned to become a significant player in the global cloud technology landscape, with the potential to realize substantial economic gains through technology adoption.

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