UAE Managed And Data Centre Service Market To Reach $971m By 2018

The UAE managed and data centre service market is expected to grow at a CAGR of 19.8 per cent, reaching $971.8 million by 2018, according to a new report.

IDC’s UAE Cloud hosted Managed and Outsourced Services Market report, forecasting from 2013 to 2018, found that an increasing number of UAE businesses were seeking specialised IT service providers to manage their IT infrastructure.

Companies were found to be adopting network and desktop managed services, as well as managed application outsourcing and data centre services, including; colocation, dedicated server hosting and shared web hosting.

“As the availability of skills remains a major challenge and as up to 70 per cent of IT teams spend their time on processes related to ‘keeping the lights on’, CIOs and IT managers are under constant pressure to create incremental capacity for strategic IT projects,” said Saurabh Verma, research manager for IT services at IDC Middle East, Africa, and Turkey

“Given the flexible engagement models of managed services, smart CIOs are discretely identifying workloads that can be outsourced. Additionally, the service provider landscape from a maturity, availability, and service-level agreement (SLA) commitment point of view has also improved over the years. Altogether, these factors are playing a pivotal role in increasing adoption of managed and datacenter services in the UAE.”

Factors driving managed and data centre service adoption include the need to reduce operating expenses and increase operational efficiency, IDC said, with cloud adoption gaining momentum in the region, despite some security concerns.