Gitex Global ’22: Cloud Computing and Metaverse will be the technology expenditures of the UAE

This is also why it seemed that corporate IT spending was not reaching the same levels as it was in 2020-21, when the need for remote work forced companies of all sizes to upgrade immediately to support the transition.

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“Business spending is on the rise, moving more towards cloud-based opex (operating expenses) models rather than traditional capex (capital spending) models,” said Victoria Mendes, head of research for data and analytics (META ) at the IDC consulting firm.

We don’t expect a delay as there is a simple shift from traditional to cloud spending and we expect enterprise technology spending to be at or even higher than 2019 levels.

–Victoria Mendes, IDC

This then means lower server costs and expensive upgrades to their IT systems, unless absolutely necessary. The other category that continues to receive business confirmations is cybersecurity.

And tech industry sources say 2023 has all it takes for another strong year in terms of spending. “In the UAE, government organizations are very far ahead in making these investments and upgrades necessary for ‘everything smart’,” said the CEO of an IT services company in Dubai. “The same can only be said for the largest private companies here: there are so many things that need to be done by others.

“Unless there is a severe global recession and its effects are also felt by the Gulf economies, IT spending will not stop.”

This is then the background for the opening of the latest Gitex, now nicknamed “Gitex Global”, which will dwell in depth on the fate of startups, fintech, Metaverse and, of course, the cloud among the main vertical sectors. The 2022 edition starts on Monday 10 October and will run until Friday at the Dubai World Trade Center.

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Global heavyweights like Huawei, Amazon Web Services, Microsoft, and Oracle have taken up enough space in the UAE’s transition to the cloud. They have become operational with state-of-the-art data centers, while Khazna, owned by G42 and e & – (formerly Etisalat), is the local powerhouse in this space.

Check out these numbers on cloud spending in the UAE and it provides even more evidence of why IDC’s Victoria thinks this is where the IT spending madness will continue to be.

According to an IDC study, approximately 70% of UAE enterprises are moving from the “discovery and pilot” phase to “meaningful deployment of business applications in the cloud”. Public cloud spending in the UAE is expected to grow 31.6% this year to $ 1.3 billion, while private cloud spending continues to rise and “hybrid multi-clouds are increasingly the standard. for organizations. (Public cloud is where IT assets are owned and managed by the provider and shared across the web with multiple tenants.)

Digital transformations and an opportunity for VCs

At the same time, digital shift projects will keep tech companies busy. “There will be a lot of emphasis on online payment services across all categories, opening up more opportunities for fintechs to secure key deals and financing,” an industry source said.

This would be a signal for more action by tech startups in the region. Walid Hanna is the founder and CEO of Middle East Venture Partners (MEVP), the Dubai-based venture capital firm. Hanna believes these will be the main trends in tech startups:

* Market penetration (e-commerce, online payments, etc.) is still quite low compared to Western markets (4 times less).

* The online banking infrastructure is underdeveloped, especially in the Levant and North Africa, which also leaves room for further digitization.

* Presence of a highly underbanked population with few credit options.

* There is still room for clearer regulation, especially in the fintech space. The United Arab Emirates, Saudi Arabia and Egypt are the pioneers in the region.

* Exit options are on the rise, both from an M&A and a listing perspective, which was unimaginable three years ago.

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MEVP has had several successful releases, including seven in 2021 alone, including (Abu Dhabi HQ Music Portal) Anghami.

– Walid Hanna, MVP

“We closed a partial release of Fresha, an online marketplace and SaaS (Service as a Software) management platform for spas and salons, offering a 52x cash return. The company was born in the United Arab Emirates, mainly serving the American markets. It later expanded globally and moved its headquarters to the UK.

And then there is the Metaverse

Dubai’s digital transformation plan emphasized the metaverse. Dubai’s first feature set, such as the Dubai Airport Free Zone, has already announced its presence in a parallel universe built around augmented reality.

And the presence of Dubai entities in the Metaverse will be based on solving real problems and more.

So said the other day Sultan Ahmed Bin Sulayem, Group President and CEO of DP World: “We are exploring the use of the metaverse in our services, including simulations of depot and terminal operations, container and ship repair inspections, security training and other business uses Our customers will now be able to see and understand the entire end-to-end supply chain, with full visibility, and take corrective action in the event of logistical bottlenecks.

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Using this technology, we hope to keep the flow of trade, increase visibility and minimize disruptions to build future-ready business networks.

– Sultan Ahmed Bin Sulayem, DP World

The cloud and the Metaverse: in IT, here’s where the expense will be …

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