Dubai, December 6, 2010 - Cloud understanding is surprisingly high across the Middle and Africa region (MEA), particularly as compared to other growth markets such as Asia Pacific, says the latest “Cloud Computing Market Dynamics in Middle East and Africa (MEA)” report from Springboard Research, a leading innovator in the IT Market Research industry. Springboard Research revealed that 67% of organizations in MEA are either currently using or planning cloud initiatives. Countries leading in both current and future cloud adoption include Egypt, Israel, South Africa and Turkey, while countries such as Nigeria, Saudi Arabia and UAE are likely to lag.  Nonetheless, security remains a primary cloud-related concern across the region, outweighing concerns over availability and performance as well as data privacy and residency.

Total Cloud Spending is Estimated to be US$671.5 Million in 2010

The majority of cloud spending in 2010 went towards public cloud initiatives, US$521.5 million. Springboard Research estimates a 61% CAGR over the 2009-12 period during which organizations will continue to spend more towards public clouds than private clouds.

Small and Medium Sized Businesses are Aggressive Adopters 

The Springboard Research report found that cloud adoption varies slightly by organization size. Small and Medium sized Businesses (SMBs), particularly organizations with 100-299 employees, are the most aggressive adopters, with 71% currently using or actively planning to adopt cloud-based solutions. Meanwhile, 63% of large organizations (more than 1000 employees) are currently using or actively planning cloud initiatives.

Among the vertical industries, telco/ media and the public sector are most bullish in terms of cloud awareness, perceived relevance and adoption while manufacturing and financial services currently lag behind.

When Solutions are Combined, Web Conferencing/ Instant Messaging/ Collaboration and Email dominate among Cloud-based solutions in use across MEA

According to the Springboard Research report, solutions across these typically overlapping product categories are the most widely used Cloud-based solutions, as cited by 61% of MEA respondents. Not too far behind, when combined, enterprise applications including ERP, CRM and BI, were cited by 51% of MEA respondents.

MEA organizations are particularly keen to exploit the cost saving potential of cloud solutions, with 52% viewing the cloud as primarily a cost-saving measure, versus only 34% who mainly view it as a strategic investment.

Among vendors, Google and Microsoft lead in terms of cloud usage and adoption plans, well ahead of all other vendors. Although there is a steep drop off after Google and Microsoft, survey respondents also cited IBM, HP, VMware and Amazon as key cloud suppliers in MEA.

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About this Report

The Springboard Research report - “Cloud Computing Market Dynamics in Middle East and Africa (MEA)” - highlights the end user adoption trends of Cloud Computing in Asia Pacific. The insights in the report were derived from interviews with 700 CIOs, IT managers and line of business managers during July and August 2010. The survey focused on Cloud Computing-related awareness, understanding and adoption in the Middle East and Africa (MEA) region.

About Springboard Research

With visionaries others pursue, methods others neglect and ideas others don’t consider, Springboard Research not only seeks to lead an industry - we seek to transform it. Leveraging our pioneering research model and industry thought leaders, Springboard Research provides greater insight, analysis, and innovation specific to global emerging markets. Working with leading technology vendors, IT professionals, and local channels, Springboard Research helps our clients lead, rather than follow, market trends.

Springboard Research has a global presence with research centers in Australia, China, India, Japan, Malaysia, Pakistan, Singapore, the UAE, and the US. We have been acknowledged as an emerging leader and for the last three years been named a “Rising Star” in the global IT market research industry by Outsell, the leading research and advisory firm for the information industry. For more information and access to Springboard’s research, please visit www.springboardresearch.com

Media Contacts

Jeanne Chai, Marketing Manager
Springboard Research
65-6325-9863
[email protected]  

James Erickson, Research Manager, Middle East & Africa   
Springboard Research
971-4434-5693
[email protected]