70 percent of Dubai start-ups employ cloud computing solutions

Dubai Silicon Oasis Authority, DSOA, the regulatory body for Dubai Silicon Oasis, DSO, on Monday announced the findings of the 'Cloud Report 2017', commissioned in partnership with IBM and produced by Thomson Reuters.

Launched at a joint press conference held at Dubai Technology Entrepreneur Centre, Dtec, the report provides an in-depth overview of cloud computing adoption across the start-up segment in Dubai. Through a survey of more than 100 start-ups, supplemented by several case studies, the document offers valuable insights on the start-ups’ spending power, priorities, challenges, and requirements.

The Cloud Report 2017 found that 70 percent of start-ups in Dubai currently use cloud computing, and 24 percent even built their start-ups on the cloud. Meanwhile, 38 percent of those not yet on the cloud plan to adopt the technology in the near future. Across the three cloud service models available, 76 percent of start-ups on the cloud have opted for 'Software as a Service', SaaS. Meanwhile, 'Platform as a Service', PaaS, and 'Infrastructure as a Service', IaaS, are each used by 32 percent of adopters. One-third of the start-ups on the cloud utilise more than one type of cloud service, with nine percent using all three service models.

Start-ups on the cloud in Dubai use an average of 4.39 cloud services, with 36 percent using one or two services, and 18 percent using more than five. Storage and web hosting are considered as core services and are generally the first cloud services adopted. They are also currently the most widely used at 68 percent and 67 percent respectively.

Although 72 percent of all start-ups spend less than US$50,000 on IT annually, 24 percent dedicate more than 20 percent of that annual budget to cloud solutions. In addition, 80 percent of start-ups on the cloud are planning to increase spending on cloud services in the next two years.

Among the start-ups that have not yet adopted cloud solutions, 42 percent find the initial investment prohibitively high. Other concerns delaying start-ups from moving to the cloud include data protection and security, coming in at 27 percent and 15 percent, respectively.

Speaking about the report findings, William Chappell, Chief Financial Officer at DSOA, said, "In line with the National Agenda of the UAE Vision 2021, launched by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, DSOA aims to actively contribute to the national key performance indicators under the 'Competitive Knowledge Economy' pillar. As we transition to a more technology-focused world, all sectors of the UAE’s economic landscape are working relentlessly to forge a digital transformation.

"The Cloud Report 2017 provides insights for start-ups on the best cloud adoption practices while serving as a valuable resource for cloud solution vendors. The document outlines the services and models popular with start-ups, as well as the factors that influence decision-making around cloud implementation in Dubai."