The imperative for embracing cloud-enabled technology has become increasingly evident with the rapidly evolving business environment. We have moved beyond the stage where cloud adoption is merely advantageous – it is now essential for businesses as they navigate the modern digital economy.
Businesses worldwide are adopting cloud-enabled technology at speed. The global cloud market, valued at US$626.46bn in 2023, is expected to reach US$1,266.4bn by 2028.1 According to the research and consultancy firm Gartner, cloud computing is predicted to become the pervasive style of computing in the coming years.2
Cloud adoption rates in the Kingdom of Saudi Arabia (KSA) reflect this worldwide trend. Annual spending on public cloud services is expected to reach US$3.9bn in 2027, with an expected compound annual growth rate (CAGR) of 23.4%, as per the research by the International Data Corporation (IDC). KSA has created a CSP regulatory ecosystem to support this growth and there are now 29 government (Communications, Space and Technology Commission) registered cloud service providers currently in KSA.
Cloud adoption worldwide is driven by a number of factors, including the shift towards remote working, the potential for enhanced data analysis and cybersecurity, and the need to create more efficient and resilient supply chains (cloud-based solutions provide the real-time insights needed to optimise inventory management, reduce costs and mitigate risks). As more and more businesses harness the power of artificial intelligence (AI), cloud technology will provide the foundation for scalable and cost-effective transformation.
The cloud provides the infrastructure for young companies to innovate at speed, and this is in turn driving the growth in cloud adoption. In the five years to 2022, the number of unicorns (privately owned, venture capital-backed companies valued at more than US$1bn) grew from 165 to 743, driven almost exclusively by emerging technology.3 These companies are using technology to actively disrupt and change consumer behavior in several key markets, including payments and healthcare.
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