GCC public cloud market to grow by 25% annually through to 2024: IDC

The GCC public cloud market is expected to more than double in value by 2024, growing from $956m this year to $2.35bn at a cumulative annual growth rate (CAGR) of 25 per cent, a recent study by IDC reveals.

The study found out that although enterprise spending on information technology has remained subdued in general, several sub-markets within the sector have witnessed strong growth. This trend was particularly highlighted in the infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), and software-as-a-service (SaaS) segments, in which spending has grown by 32.7 per cent, 32 per cent and 24.1 per cent respectively.

The IDC also found that 53 per cent of CIOs in the region are aiming to accelerate their existing digital transformation efforts to meet customer and business needs, whereas only 23 per cent plan to slow down or stall these initiatives to focus on core IT tasks.

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Saudi Arabia is forecast to spend the highest on enterprise IT in the GCC region this year, at $5.8bn, followed by the UAE with $5.3bn.

The findings were revealed at a recent panel discussion hosted by Dubai Outsource City, a free zone that supports local and international outsourcing companies.

“During these exceptional times – when the vast majority of workers are collaborating across vast spaces, distances and time zones – cloud technologies become an unprecedented necessity,” said Ammar Al Malik, managing director, Dubai Outsource City.

“By leveraging these efficiencies, we can greatly simplify and smoothen workflows and processes, while also contributing to Dubai’s vision to become one of the smartest, most future-ready cities in the world,” he added.