The demand for cloud services has immensely increased due to the rising adoption of cloud computing within small and medium-sized enterprises (SMEs), which are resorting to the technology to improve business operations.
As the world becomes more digitalized, SMEs have shifted their focus from manual work to applying cloud-based applications that will assist them in increasing flexibility, scalability, security, and efficiency in their businesses. With improved business solutions, they can seamlessly fulfill their digital transformation goals.
What Are Cloud Services?
Cloud services refer to infrastructure, platforms, or software hosted by third-party providers and are accessed over the internet. These services are typically offered on a subscription basis, with three primary models prevailing in the industry: infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), and software-as-a-service (SaaS). Among these, SaaS is often considered the most practical option for SMEs.
The use of cloud services is advantageous as it helps customers gain easy accessibility to cloud storage, computing power, and IT infrastructure. Depending on the subscription acquired, there could be a maintenance expense for regular software and hardware updates.
Large-scale businesses are receiving help from cloud platforms to build and use applications in their present software infrastructure. They are optimizing their strategy by consulting and offering integrated cloud-based services to determine which applications work best in the cloud and how to seamlessly integrate them with their existing infrastructure.
SaaS
With the ongoing shift toward cloud adoption, particularly hybrid cloud, SMEs are gravitating toward SaaS solutions due to their limited need for resources and the simplicity these solutions offer to their infrastructure.
Reportedly, around 78% of small businesses have invested in SaaS, with accounting, content management systems (CMS), and customer relationship management (CRM) being the most widely-used SaaS applications.
According to Esam Mahmoud, SVP SMB, e& UAE, small and medium-sized businesses are indeed adopting CRM systems, AI-powered customer support solutions and feedback management tools to meet customer expectations and improve their experience.
Moreover, SMEs are utilizing cloud storage solutions such as Google Drive or Dropbox to securely store and share documents and easily facilitate collaboration among remote teams. This not only enhances efficiency but also ensures data accessibility from anywhere, promoting seamless workflow continuity.
Furthermore, the adoption of cloud infrastructure services like Amazon Web Services (AWS) or Microsoft Azure enables SMEs to deploy and scale applications rapidly without upfront infrastructure investments. This flexibility empowers them to innovate more swiftly, respond to market changes dynamically, and compete effectively in their respective industries.
An example of this is the AWS AppFabric. It helps customers connect and manage some of the most popular SaaS applications and productivity suites in one location. These include Dropbox, Google Workspace, Microsoft 365, Webex by Cisco, Zendesk, and Zoom. Within the AWS Management Console, customers can select the list of applications their organization uses to connect to AppFabric. This automatically provides a standardized set of security and operational data for each connected app. This eliminates the need to build point-to-point integrations, manage those integrations, and analyze disparate security data.
Why do SMEs Utilize Cloud Technologies?
The primary factor that is boosting the growth of the cloud service market is cost-efficiency. SMEs, in particular, can save most of their annual operating expenses by opting to use cloud services.
SMEs commonly view the cloud as a way to optimize localized operations. In a strategic collaboration with Huawei, Omantel is constructing the National Cloud, which will provide cutting-edge technology, global expertise, robust data security measures, and localized data hosting capabilities. Omantel will be able to extend hosting benefits to the entire Sultanate, including SMEs.
This could be helpful as SMEs often direct their IT budgets toward cloud services that are both cost-effective and efficient. By selecting affordable, yet dependable, options, SMEs aim to streamline operations and reduce overhead. SMEs’ primary focus is on quick deployment and immediate savings, which helps them stay agile in a rapidly changing market.
Whether it be managing seasonal peaks in traffic or accommodating business expansion, the cloud provides the flexibility SMEs need to stay agile and responsive. Features like encryption, identity and access management, and automated backup and recovery also provide SMEs with robust security capabilities, safeguarding their data and reducing potential risks.
According to a report commissioned by Amazon Web Services (AWS) in partnership with the Dubai Chamber of Digital Economy, the hyperscale cloud sector could generate USD 17 billion in economic benefits for the UAE between 2022 and 2030, while also creating 133,000 jobs for SMEs and startups.
To support the digitization, growth, and expansion of UAE-based SMEs in local and international markets, the Ministry of Economy (MoE) and Amazon Web Services launched the AWS Connected Community initiative last year.
Earlier this year, Orange Middle East & Africa (OMEA) and Microsoft collaborated to support 15,000 businesses in the MEA region throughout 2024. Aiming to reach one million SMEs, both companies will provide access to technology, tools and support to accelerate adoption.
Saudi Arabia's Vision 2030 aims for SMEs to contribute 35% of the country's GDP by 2030, and technology plays a critical role in achieving this. With this in mind, in November 2023, Google unveiled a new cloud region in Dammam, Saudi Arabia, enhancing access to a wide array of services such as cloud computing and storage to data analytics and artificial intelligence (AI). The cloud region specifically targets SMEs and startups.
AI for SMEs
Alongside cloud integration, entrepreneurs are increasingly incorporating AI into their businesses. The UAE is globally recognized for its active role in establishing itself as a global hub for AI, alongside its thriving SME sector.
That being said, AI adoption will remain a powerful force in the national economy, with some forecasts expecting close to 14% of Emirati GDP to stem from AI by 2030.
Through cloud services, the drive for digital entrepreneurship and AI-based innovation and business models across the public and private sectors can be accelerated. Using cloud-enabled analytics and other advancements provided by hyperscalers, such as AI and ML, organizations can improve decision making processes, leading to increased agility, responsiveness, and reduced costs.
As part of its mission to bolster the regional economy through the empowerment of SMEs and startups, du partnered with DIFC Innovation Hub to launch the 'du Business Entrepreneurship Programme.’ Among other benefits, participants will gain access to the Dubai AI Campus—a nurturing ecosystem that fosters AI businesses and cultivates top talent at the forefront of AI innovation.
A Smarter, Cloud-Native Future
Choosing the right cloud provider, prioritizing data security, and addressing organizational resistance are crucial steps in ensuring a seamless transition to the cloud. The combination of AI, generative AI and cloud are driving new services and applications for SMEs.
Telecom operators, among other industry players and service providers, are repositioning the cloud for scalability, cost-efficiency, faster service deployment, and better data management to meet growing demand and drive innovation within SMEs.
While we are yet to witness significant results from this cloud transition, they are likely to emerge soon as technology integration progresses, making SMEs increasingly valuable in the market.
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