CEO of Cisco John Chamber in his last keynote at Cisco Live – 2015 said “In next 10 years 40% of the business will not exist in a meaningful way”. There is Tsunami of seismic shift impacting the global businesses including Technology transition, business model transition and hence if business do not respond in a meaningful ways they may not exist in a meaningful way. The market is cluttered with such examples such as Kodak, Nortel, Cabletron, Blackberry, Nokia and so on.
Happy Hours are over. And businesses are responding by adopting Cloud computing incorporating a digital strategy. John Chambers also said that 75% of the companies have a digital strategy but only 30% of them will succeed. Let’s explore triggers that are driving cloud adoption in Dubai?
- AWARENESS: Technology vendors such as Cisco, Microsoft, Google, Oracle and their local partners are educating businesses, creating Cloud awareness and acceptance. Business are constantly being showered with CLOUD message
- MILLENNIALS: Millennials are digital natives and mobile addicted. Growing percentage of Millennials coming to the job market is also lubricating adoption of cloud. Its projected that 50% of global workforce would be millennial in 2020 and 75% by 2025
- MOBILE APPS: Ease of deployment, ease of use and minimum initial cost is driving cloud adoption. Early 2015 Dubai government had also announced government initiatives to launch mobile apps to engage businesses and the residents. Banks and businesses are launching mobile apps to retain customers and increase customer loyalty.
- CONFIDENCE: PROLIFERATION OF Multiple Data center initiatives such as Pacific Control Data center with Etisalat, Equinox with du; Oracle Data Center in Abu Dhabi; cloud4C; Injazat and others are driving SME confidence to adopt Cloud compute. Plus large Enterprise moving IT operations to Cloud will significantly add to market confidence in Cloud.
- Dec. 13, 2015: Etihad Airways Signs US$700 Million Technology Services, Cloud Collaboration with IBM to Transform Global Operations
- Jan. 26, 2016: Oracle aiming to build cloud data center in Abu Dhabi
- A Leading Oil & Gas Enterprise is moving to Equinox Data Center
- A Leading Aviation enterprise is moving to Amazon.
- SMART INITIATIVES: Smart City, Smart Cars and Smart devices are driving cloud adoption.
- SaaS: Proliferation of robust, reliable, right cost Software as a Service such as Salesforce.com; ZOHO, Ramco HCM – HR & Talent Management Services, SAP Henna, Microsoft Dynamics is pushing adoption of Cloud Services.
- NEW BUSINESS PARADIGMS: Uber business like Careen, AirBNB, Netflix successful business models are driving Cloud adoption. The new models think, operate and grow exponentially and not sequentially.
- COLLABORATIVE COMMUNITIES: Facebook, Twitter, LinkedIn, Instagram and so on. Facebook with 1.59 billion members larger than population of China – 1.4 Billion or India – 1.33 Billion, LinkedIn with 440 Million members has more information on employees then company HR systems. They drive Cloud awareness and help shape Cloud compute mindset. In April 2015 UAE Federal Authority of Human Resource announced partnership with LinkedIn to onboard 90,000 Federal Government employees on LinkedIn.
- SOCIAL SELLING: Customers buying habits have changed. 57% – 70% of purchasing journey is completed before a seller is called in. Hence sellers must change their habits too by leveraging Social Media to get early into the sales cycle and shape customer purchasing behavior.
- BIG DATA: Business are adopting and leveraging Big Data that demands cloud.
- INTERNET OF THINGS: There would be 24 Billion IOT devices by 2020. In its study, Worldwide and Regional Internet of Things 2014-2020 Forecast, IDC revealed its prediction that the global IoT market would hit $7.1 trillion by 2020. http://tinyurl.com/n7vvu9b
- STARTUPS ECOSYSTEMS: Incubators such as in5, Flat6, TURN*, Astrolabs support Startup culture. Cloud is the progressive roadmap for Startups that enable build and operate business at minimum initial cost.
- ECOMMERCE: Leading Electronic Stores and Hyper markets in UAE are setting up ecommerce to expand digital foot print and limit dependency on Real estate. Souq.com with 45 Million monthly visitors fall is raising AED 1 billion to expand geographically.
- NEW OPEN INITIATIVES: New emerging and trending platforms ( Such as Software for Open Networking in the Cloud (SONiC) by Microsoft, and OCP – Open Compute Platform initiative by Facebook is doing for hardware what Linux, Android, and many other popular products did for software: making it free and “open source.”) are also forcing enterprises to plan Digital strategy
- SMARTPHONE AND INTERNET PENETRATION: UAE has the highest penetration of Smartphones and Internet in the region which is driving cloud adoption
- Dubai Expo 2020: Sub Theme of Dubai Expo 2020 is “Opportunity, Mobility and Sustainability” is encouraging business to adopt cloud.
The underlying current for digital business are need for SPEED: Speed to customer demand, FLEXIBILITY: To grow and shrink, GROWTH: Providing Enterprise systems capability at lower initial investment and COST: Lower TCO. Cloud compute is no more a fad or a hype but become a main stream and expected to grow between 24% – 30% CAGR reaching $270 billion in 2020.