Cloud computing is proving attractive for businesses in Dubai

A recent Dubai Chamber of Commerce and Industry study reveals that cloud computing, which is the provision of a range of services including shared resources, software, and information, is proving attractive for developers and businesses due to the unprecedented growth and high profitability prospects offered by the sector in the coming years. 

The study, released on the sidelines of the opening of the 2^nd Cloud Computing World Forum Middle East and North Africa in Dubai being attended by over 200 leading regional and international companies, states that the organising of the event for the second consecutive year is testament to the growing demand for the cloud computing services. 

The forum brings together business in Dubai and the region to discuss the latest topics in cloud, such as cloud security, mobile, applications, communications, virtualisation and customer relationship management (CRM) platforms. The sector continues to lure developers and service firms to Dubai, informs the study.  

Also, with the unprecedented growth experienced by the internet and communications technology sector in the UAE and the wider MENA region consumers and businesses have become progressively sophisticated in their use of the internet and file management. The trend has also led to the availability of an array of service-based opportunities arising from cloud computing. 

Drivers of growth 

The cloud computing industry, broadly understood as the integration of applications, platforms and infrastructure services, is proving attractive to the investor for several reasons. Perhaps the most important factor is that cloud services buck the trend of the economic cycle. Internet-based technologies are often considered a daily necessity and therefore exhibit solid growth in relation to the economy. 

In the UAE, and the wider GCC, growth prospects for the sector are amplified partly because of the technology-savvy population dynamic of an emerging yet sizeable growing middle income class. According to Economist Intelligence Unit forecasts, the GCC population will reach 53 million by 2020. As incomes rise, spending on technology typically rises as consumers tend to become more service-focused. 

Other regional drivers for growth are access-related. The UAE is proving to be an optimal location to launch products because of its relatively fast internet connection speeds and reliable networks. Table 1 illustrates sampled UAE household internet download and upload speeds in relation to selected countries in the MENA region.