UAE's data centre services to reach $971m by 2018
International Data Corporation expects UAE’s managed and data centre services market grow at a CAGR of 19.8% between 2013 and 2018.
According to figures released in a report by the International Data Corporation (IDC), the UAE’s managed and data centre service market it expected to be valued at $971.8mn by 2018.
The report, which also focused on cloud-hosting services and outsourced models, predicts a compound annual growth rate (CAGR) of 19.8% between 2013 and 2018.
The expected growth stems from increasing demand amongst end-users who are trying to match the higher level of IT agility and increased operational efficiency expected in the modern market. Data centre services, such as hosting infrastructure services are particularly gaining traction. This includes colocation, dedicated server hosting and shared Web hosting.
Saurabh Verma, research manager for IT services at IDC Middle East, Africa and Turkey, shared: “As the availability of skills remains a major challenge and as up to 70% 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.”
IDC’s report also highlighted a trend amongst organisations that are being pressured to simultaneously reduce operating expenses, while increasing efficiency. As result, the market has become incredibly competitive, leading entities to focus their efforts into streamlining their core businesses.
Verma adds, “Cloud services as well have gained greater momentum over the last few years, and both public and private cloud models have seen increased levels of adoption … even though numerous organizations have reservations about the security aspects of cloud services, they are slowly testing the waters to see what can be gained from their use.”