3 Trends that are Revamping the Technology Sector in UAE
As the world is digitized, the enterprise customers in the UAE are taking a more cautious approach when investing and expanding their horizons.
Fremont, CA: With 2019 having been a challenging and transition year, it will be interesting to watch what trends will mold industries in the UAE. The telecom sector is expected to grow slowly at 1.0 while devices and infrastructure sectors are expected to grow close to 6 percent, and software and IT services are expected to grow close to 8 percent. The commercial segment is looking more positive than the consumer space. The shifting trends across the globe indicate that enterprise customers take a more cautious approach when investing and expanding. There are several variables, such as assumption around global trade, whether oil prices will be flat or whether it will fluctuate, regional political uncertainty, cost of living index, and economic growth.
Here are the top 3 trends that is dominating 2020.
Organizations are getting more aggressive in embracing digital transformation. Organizations are leveraging some of the technologies to enhance the customer experience. Traditional IT areas like devices and infrastructure are slowing down. Companies are utilizing the investment to drive adoption of disruptive technologies like artificial intelligence, Internet of Things, robotic process automation, blockchain, big data analytics, and cloud to cut costs and drive more efficiency.
Public cloud services are witnessing a significant uptake. The public cloud market is thought to grow by 35 percent to $406m compared to $299m this year. Two-thirds of the organizations approaching the cloud through a hybrid model and the organizations in the public and government sectors, retail, transportation, utilities, wholesale distribution, hospitality are on the public cloud.
On-premise spending is declining rapidly, and a lot of the expenditure is transitioning to the cloud as a subscription-based model. Here, speed and agility are the key drivers for the cloud.
Security investments continue to play a significant role in the growth. One of the reasons is that the companies are among the most challenging areas for CIOs and IT. Presently, even CEOs have acknowledged security to be one of their top priority areas. Given the region in which companies are operating due to geopolitical issues and some of the malware taking place, security is becoming an essential part of the plan for banks and public sectors.