Press Release

Dubai, UAE, July 4, 2016 View All Press Releases

Gartner Says Public Cloud Services in the Middle East and North Africa Region Forecast to Reach $880 Million in 2016

The public cloud services market in Middle East and North Africa (MENA) region is projected to grow 18.3 percent in 2016 to total $879.3 million, up from $743.1 million in 2015, according to Gartner, Inc.

Business process as a service (BPaaS), the largest segment of the cloud services market in MENA, is expected to reach $261.3 million in 2016, a 6 percent increase from 2015 (see Table 1). The cloud management and security services market is the fastest growth segment, with 2016 revenue on pace to grow 27.5 percent from 2015.Software as a service (SaaS) is expected to grow 26.6 percent in 2016 to reach a revenue total of $210 million.

"We continue to see a shift from legacy IT services to cloud-based services. Organizations are pursuing a cloud first strategy driving market growth," said Sid Nag, research director at Gartner.

"The growing interest in the reduction of data center build-outs, being replaced by the public cloud, will drive faster growth of the cloud market now and in the future," said Mr. Nag said. "The growth in cloud management and security is a testimony that cloud related services, in addition to the core cloud services, are critical to cloud adoption. Organizations will look for increased automation and management of these cloud assets, as well as focus on the security aspects of consuming public cloud."

Table 1. MENA Public Cloud Services Forecast (Millions of U.S. Dollars)

2015

2016

2017

2018

2019

2020

Cloud Business Process Services (BPaaS)

246.6

261.3

280.1

300.7

323.0

340.2

Cloud Application Services (SaaS)

166.1

210.4

265.6

332.7

411.7

509.8

Cloud Application Infrastructure Services (PaaS)

61.8

77.8

99.9

121.3

142.0

162.8

Cloud System Infrastructure Services (IaaS)

81.1

96.5

115.2

138.1

164.7

197.3

Cloud Management and Security Services

70.8

90.2

113.2

138.8

167.4

195.6

Cloud Advertising

116.6

143.1

193.0

226.4

267.7

319.4

Total

743.1

879.3

1,067.0

1,258.1

1,476.6

1,725.1

Source: Gartner (June 2016)

More detailed analysis is available for Gartner clients in the report "Forecast: Public Cloud Services, Worldwide, 2014-2020, 1Q16 Update".

 

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