Cloud computing in the Middle East

New opportunities for companies and cloud providers

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Executive summary

The Middle East is quickly catching up to other markets in terms of cloud computing adoption. Government investments and the increasing presence of public cloud providers are making cloud solutions more accessible. These developments are providing organizations in the public and private sectors with a faster route to capturing value from the technology. PwC recently surveyed companies in the region to gauge the level of cloud impact—the first publicly available research on cloud adoption in the region (see “About the survey”). This publication summarizes our analysis and provides vital insights for cloud computing customers and providers. Specifically, our analysis indicates that cloud adoption has passed the initial adoption phase and is poised for accelerated growth. Jointly, Strategy& or PwC Middle East identify how leading companies are capturing the benefits of cloud technology, and then present key considerations for cloud professional and managed services providers (here referred to as CSPs) in the Middle East.

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Executive summary

The Middle East is quickly catching up to other markets in terms of cloud computing adoption. Government investments and the increasing presence of public cloud1 providers are making cloud solutions more accessible. These developments are providing organizations in the public and private sectors with a faster route to capturing value from the technology. PwC and Strategy& recently surveyed companies in the region to gauge the level of cloud impact—the first such publicly available research in the region (see “About the survey”). This publication summarizes our analysis and provides vital insights for cloud computing customers and Cloud professional and managed services providers (Cloud PMSPs).

Specifically, our analysis indicates that cloud adoption has passed the initial adoption phase and is poised for accelerated growth. Jointly, PwC and Strategy& Middle East identify how leading companies are capturing the benefits of cloud technology, and then present key considerations for Cloud PMSPs in the Middle East.

Download the report

Cloud-powered companies lead the way in seizing the value of the cloud

Our analysis has identified a distinct group of “cloud-powered” companies that consistently outperform peers in terms of value realization from cloud transformation. We define cloud-powered companies as those in the top quartile in achieving measurable value from the technology. This group is two to three times as likely as non-cloud-powered companies to be achieving measurable value in any given area covered by our survey. Members of this group are also nearly three times as likely as their counterparts to have fully embraced cloud technology and integrated it comprehensively throughout their business operations.

Cloud-powered companies are more likely to capture all aspects of value

Key actions help organizations achieve the full value from the cloud

 

Take a holistic and unwavering approach to cloud computing

Build stronger alliances across the C-suite early on

Emphasize cloud controls and governance

Develop a formal data, analytics, and artificial intelligence strategy

Cloud-powered companies outperform by not following a linear path from workload migration to asset modernization to cloud-native development. Instead, they adopt a holistic approach, driven by a well-defined vision and supported by a robust architectural road map and governance framework aligned with specific business goals.

Cloud-powered companies excel at building strong alliances within the C-suite, encompassing both business and technology roles. These alliances facilitate a unified approach to cloud transformation closely tied to business objectives.

Cloud-powered companies are more advanced than other companies when it comes to adopting leading practices in cloud governance, risk, and controls. For example, they are more likely to have resources dedicated to cloud governance, formal and distinct cloud controls, and robust evaluations of shared responsibility with CSPs. In their efforts, they focus on a variety of issues, including cybersecurity, data privacy, and compliance.

Executives at cloud-powered companies understand the all-too-common issue of siloed, untapped, and ungoverned data. This being the case, cloud-powered companies are much more likely to have an enterprise-wide data strategy than other companies (73 percent versus 42 percent).

 
About the survey

About the survey

To assess the state of cloud technology in the Middle East, PwC and Strategy& surveyed 420 technology and business leaders in Saudi Arabia and the United Arab Emirates, the region’s largest cloud computing markets, across a range of industry sectors. This analysis is part of PwC’s broader Cloud Business Assessment, which covers Europe, the Middle East, and Africa. The fieldwork was conducted in March 2023. We compared results with those of the U.S. from a 2022 survey. We excluded organizations with no cloud adoption plans and those whose leaders were uncertain about their reasons for not adopting cloud technology.

Conclusion

The Middle East’s cloud journey offers possibilities for innovation, growth, and transformation. By taking a holistic, well-planned approach to cloud migration, public-sector and private-sector organizations can achieve significantly higher value from their cloud transformation. For Cloud PMSPs, the opportunity is even greater, with the opportunity for billions of dollars in new revenue.

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Contact us

Achilles Drettas

Achilles Drettas

Partner, Strategy& Middle East

Nikolaos Lioulis

Nikolaos Lioulis

Principal, Strategy& Middle East

Rajat Chowdhary

Rajat Chowdhary

Partner, PwC Middle East

Tel: +971 50 429 3733

Mina Ghabbour

Mina Ghabbour

Partner, PwC Middle East

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