Cloud is about to turn Middle East IT Infrastructure Environment

Cloud has been the buzz word in IT across the globe for sometime. Global organizations have found it very interesting step towards managing and securing their data. futuristic companies have been opening with mind boggling products which have been both cost effective and quick to implement. Cloud products not just bring new technologies but also reduce the complications in managing IT infrastructure.

Initially Cloud computing was considered as an alternative to data storage, but evolution has bought standard desktop apps to internet platform. Online platforms like Google apps or Zoho have transformed the way we create and manage our documents. Microsoft also appreciates this transformation and is working to make its product more and more cloud based with Office 365. New age ERPs, CRMs and HRMS which were considered predominantly closed environment products, carrying important data of customers, have also started moving towards cloud. NetSuite for example is a very good example of Cloud based ERP, while Salesforce.com is now a household name in Cloud CRM.

Newer products like Jive, a Social Media Platform for Intranet and Extranet, bring a new dimension to Cloud Computing. Demandware on the other hand is the big gun in ecommerce business, while Athenahealth brought healthcare to Cloud.

Everything from Travel management to Hospitality, Healthcare to Pharma, Human Resources Management to Employee Relations, Data transfer to Data Security, Remote IT Infrastructure Management to Business Financials Control, Cloud based companies have successfully covered every step of our life. Most of the time we are not aware that we are using cloud technology, eg. like Google Drive or iCloud.


Social Media like Facebook, Google Plus and Linkedin have already made their mark and gaming companies like Zynga and online communication products like Skype and Google Hangout have become a part of everyone's life.

But there has been some skepticism in adapting to Cloud Computing in Gulf and Middle East. Cloud Computing companies have over the years not been able to convince the organizations to adapt to newer environment. There are multiple reasons why companies have not been able to place their foothold here.

1. Local Organizations in this region are more traditional operators and find it difficult to readjust to newer thought process. They are not comfortable to let go control of their important data. They worry about where the data would be stored and will they ever get their data back when they really need it.  
2. Companies are always keen to see what others have successfully done and only then they want to try something new.
3. Brand awareness is also a concern. Those products that are already been implemented in other companies are considered as the right product without much modification. For example, Oracle and SAP are considered as the best ERP as others are using it. Or for basic accounting people use products like Tally. 
4.  Awareness is also a concern as there is a lack of marketing activities in this region from Cloud computing companies. 
5. Cloud Computing companies stay focused on mature markets like US and Europe where there is more acceptability of Cloud technology. Newer regions like AsiaPac has also gained a lot of interest with lot of new companies starting operations in the region. Lot of back-end activities of companies were already outsourced to this region, which also led to surge in Cloud computing companies there.
6. Cloud companies find it difficult to reach out to individual countries to market their product.
7. Another major reason for lack of interest in Cloud Computing is support. Not many Cloud companies could provide proper support to local companies specially with the limitation of time zones and lack of keenness to reach out to companies in this region. 
8. Local IT providers have also been skeptic to try and promote Cloud technology, primarily because of  knowledge about the products and support concerns. They are not very keen to destroy their hard built reputations just because of lack of product knowledge or support for these products or customers acceptance limitations.
9. Another challenge is the legal framework surrounding cloud services. There is no legal process available within the region which would protect the interest of the companies who adapt to Cloud technology.

So what is changing?

Local companies are looking for cost effective solutions. Recent recession brought focus on cost control and quicker implementations. Also newer generations have started to take the mantel of their business from their seniors. Newer generation is more open to change and look for much cost effective alternative which are both easy to use and bring a new image to their companies. 

A recent survey has found that 27% of major group companies in UAE itself want to change the way they are currently operating. Which also includes changing their IT infrastructure. What is more encouraging is the fact that these new age business leaders have not closed their eyes on trying a new concept altogether.

Another interesting development after Gulf recession and Arab Spring protest to change leaderships, has been sudden surge of new start-up across the Middle East. These companies with small budgets are always worried about spending more money. They are looking for alternatives which can be of low cost and would not need them to build IT infrastructure. This has lead to renewed interest by Cloud Computing companies to look at Middle East region for newer and less competitive business. 

Further, Mobility products have really helped Cloud computing immensely. Smart phones and Tablets are becoming everyday requirements. From kids to enterprises access smart phones and tablets on day to day basis. Interest in Cloud applications are thus becoming a prime focus for companies to have their presence felt.

So what is in-store for companies in Middle East?

Everything from ERP to HR have started to move to Cloud. Social Media products finding place for pushing their legs in the market. IT infrastructure outsourcing has already become a big business. GITEX 2013 saw a 20% increase in companies promoting cloud technology. Private Cloud as a concept has been getting quite a few eyeballs. But Public Cloud products have also got lot of interest. Google Business Apps sales have doubled in last quarter compared to previous quarter. Large organizations still find it difficult to adapt Cloud solutions, but they are putting small applications on public clouds and pushing their Large data to private clouds or Hosting servers.

With 70% of the population in the region within the age group of 15-50 years Marketing to the youth customers through Mobile applications is also the best thing. Social media is also helping them mix well with their customer base. 

There are promising signs for Cloud Computing technologies, but still a long way from becoming a part of every organization very soon. Traditional concerns and cost of moving away from already implemented IT Infrastructure are still a major hindrance, but gradual intake of newer technologies brings brighter image for Cloud Computing in future. 

- CloudDrive Consulting