Press Releases

Dubai, United Arab Emirates, March 7, 2016

Gartner Says Public Cloud Services in the Middle East and North Africa Region Forecast to Reach $864.2 Million in 2016

The public cloud services market in the Middle East and North Africa (MENA) region is projected to grow 18.1percent in 2016 to total $864.2 million, up from an estimated $731.6 million in 2015, according to Gartner, Inc.

Business process as a service (BPaaS), the largest segment of the cloud services market by revenue in MENA, is expected to grow 6.4 percent in 2016 to reach $262.4 million. The largest growing market, cloud management and security services, is projected to grow 27.5 percent in 2016, followed by software as a service (SaaS) and platform as a service (PaaS) with growth of 26.4 percent and 23.4 percent .

"The forecast for overall cloud services in the region shows sustained momentum with a projected growth rate of 20.6 percent in 2017 . Global market dynamics, currency and exchange rates remain a determining factor in this growth trajectory." said Sid Nag, research director at Gartner. "BPaas revenue remains the largest segment with enterprises continuing to move to cloud based models as opposed to the traditional business process outsourcing (BPO). Furthermore, growth of SaaS and PaaS is an indicator of organizations and vendors moving away from on premises license based application software and application development platforms to subscription-based SaaS and PaaS models."

Gartner predicts that in 2019, total public cloud services spending in the MENA region will rise to $1.42 billion, with the largest growth coming from cloud management and security at 21 percent, followed by SaaS and infrastructure as a service (IaaS) with growth rates of 20.2 percent and 19.3 percent respectively.

Additional information is available in the Gartner report "Forecast: Public Cloud Services, Worldwide, 2013-2019, 4Q15 Update".

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