Thursday, November 23, 2017

SAP’s UAE investment tops $650m with new cloud data centre on the way

Company cuts the ribbon on new headquarters located at Dubai Internet City as the cloud economy accelerates across the MEA.

German multinational SAP has unveiled plans to invest a further $200m in the UAE, which will include the construction of an SAP Cloud data centre set to open before the end of 2017.

The announcement came as the company opened its new headquarters at Dubai Internet City this Tuesday.

The ceremony was attended by both SAP executives and Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Sheikh Ahmed bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority, and senior officials.

The $200m set to be invested over the next five years, follow on from an investment back in 2012 worth up to $450m.

The new cloud data centre will be used by SAP customers to access the company’s cloud portfolio including one of its flagship products, SAP HANA.

The facility is expected to be used by a large majority of organisations in the financial and healthcare spaces.

SAP’s bet in the Middle East comes as the region is expected to see a dramatic growth in terms of cloud traffic.

According to Cisco’s Global Cloud Index, until 2020, the Middle East and Africa is expected to have the highest cloud traffic growth rate (41% CAGR), followed by Central and Eastern Europe (38%) and North America (33%).

Yet, by 2020, Cisco predicts the MEA region will continue to be the one with the smallest amount of cloud traffic at 304 EB, compared to 6,844 EB in North America, for example.

The same happens in terms of total data centre workloads and cloud data centre workloads which in MEA are expected to top 12.4 million and 11.8 million respectively, behind regions like North America, APAC and Europe.

In regards to SAP, its most recent end of the year financial report shows that the EMEA region topped $9.68bn in revenues, 44% of the company’s global revenues of €22bn.

Luka Mucic, chief financial officer and member of the executive board, SAP SE, said: “Our UAE investment plan and our new Middle East and North Africa headquarters in Dubai affirm our commitment to this strategic market, with public-private partnerships fuelling digital transformation, co-innovation, talent development and entrepreneurship.”