Data centres interest grows in the UAE

Managed, datacenter services markets to grow at CAGR of 19.8% between 2013 and 2018
Data centres interest grows in the UAE, Research, Data


 An increasing number of organizations in the UAE are seeking out specialised IT services providers to manage their IT infrastructure, according to the latest insights from International Data Corporation (IDC).

The research firm says that managed and datacentre services in particular have gained significant traction in recent years, especially hosting infrastructure services, which include colocation, dedicated server hosting, and shared Web hosting.

IDC's latest figures support this supposition, with the overall managed and datacenter services markets in the UAE expected to grow at a compound annual growth rate (CAGR) of 19.8% between 2013 and 2018 to reach a total of $971.8 million by 2018.

"CIOs are under constant pressure to drive IT innovation and achieve higher agility," says Saurabh Verma, research manager for IT services at IDC Middle East, Africa, and Turkey.

"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. 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," Verma added.

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