SMEs, startups could see $17.1B boost from cloud computing: Report

Hyperscale cloud computing is expected to provide SMEs and startups in the UAE with $17.1 billion (Dhs62.6 billion) worth of economic benefits from 2022 and 2030--the equivalent of four percent of the country’s 2021 gross domestic product (GDP), according to a report commissioned by Amazon Web Services (AWS) in partnership with Dubai Chamber of Digital Economy.

Titled "Impact of Hyperscale Cloud on UAE SMEs and Startups", the report also projected the potential of hyperscale cloud computing to create 133,000 direct and indirect jobs in the UAE by 2030. It is also expected that hyperscale cloud computing would reduce the country’s carbon footprint and carbon dioxide emissions by up to 78% and 2.2 million metric tonnes in comparison to other IT infrastructure models.

The report was launched during an event organised by the Dubai Chamber of Digital Economy at Dubai Chambers’ headquarters in cooperation with AWS, as reported by Gulf Today.

Attendees at the event included Khalid Al-Jarwan, Executive Director of Dubai Chamber of Digital Economy, and Yasser Hassan, Managing Director for MENA and Turkey, Amazon Web Services (AWS), and other members of the business community.

The report also outlined three key recommendations to capitalise on this potential:

• Government organisations should first lead the way in digital transformation and technology adoption, harmonising and simplifying digital and data regulations and implementing a risk-based data classification system to improve data security and facilitate technology adoption;
• Government entities can collaborate with the private sector and technology companies to bridge the digital skill gap through training and upskilling programmes.
• There is a potential to increase collaboration between regulators and private companies to ensure regulations do not halt technology adoption.

The report identified the advantages of hyperscale cloud computing, which includes scalable cloud storage, services on a pay-as-you-go basis, innovative capabilities, increased security, simplified global operational processes, and the expertise to navigate operational and regulatory issues when expanding overseas. These advantages increase productivity, help in cost saving and revenue boosts, create jobs, improve sustainability and operational resilience.

Khalid Al-Jarwan, Executive Director of the Dubai Chamber of Digital Economy, said, “Despite its rapid progress, the UAE continues to look to the future as it pushes ahead with strategies and initiatives to fast track its digital transformation. Hyperscale cloud computing offers tremendous potential for startups and SMEs in the UAE that are keen to enhance their competitiveness and contribute to a thriving innovation ecosystem.”