Effect of Hyperscale Cloud on SMEs and Startups in the UAE

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The United Arab Emirates (UAE) is making considerable strides toward economic diversification. Startups and SMEs are expected to assume the role of the country’s future economic engine, as they already make up around 60% of the UAE’s non-oil GDP, and this percentage is anticipated to rise over the next few years. However, there is still a lot of room for digitization levels to increase among SMEs in the UAE. Nearly three out of every four SMEs rely on manual procedures and simple communication technologies to interact with clients and suppliers, with little to no cloud usage, reflecting a situation that may be more in line with the UAE’s new growth engine of digitalization. A strong digital infrastructure is required to close this gap in digital transformation and unlock the latent potential of SMEs and start-ups in the UAE.

According to a new report commissioned by Amazon Web Services (AWS) in collaboration with the Dubai Chamber of Digital Economy, hyperscale cloud computing is predicted to bring SMEs and start-ups in the UAE $17.1 billion (AED 62.6 billion) in economic benefits between 2022 and 2030, the equivalent of 4% of the nation’s prior gross domestic product.

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As the need to promote business agility grows, Cloud adoption is quickly evolving into a business prerogative for many in today’s market. Cloud technology is enabling businesses in speeding up the process of digital transformation while breaking down the barriers of traditional company processes cost-effectively and efficiently. Although cloud computing has many advantages, it is crucial to comprehend the distinctions between private cloud hosting and hyperscale cloud.

What is a Hyperscale Cloud?

Hyperscale Cloud helps businesses to access and expand resources according to their demand. As demand rises, businesses can access the necessary networking, storage, and memory resources. Businesses can scale up to increase the capabilities of their existing cloud infrastructure and also scale out across hundreds of nodes. By having access to on-demand resources, organizations can handle more data, increase application performance, and enhance user experience.

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What Sets Hyperscale Cloud Apart From Private Cloud?

A hyperscale cloud is typically a multi-tenant platform with on-demand access to computing resources. Since these resources can be accessed from anywhere in the world via the internet, users can provide and expand resources right away without having to invest in specialized infrastructure. On the other side, private cloud hosting provides a single-tenant platform that utilizes dedicated infrastructure. As opposed to a hyperscale cloud that is elastic and easily scalable, private cloud hosting only permits access to infrastructure that has been purchased.

A private cloud offers control and autonomy that hyperscale clouds frequently lack because the cloud provider manages the majority of the deployment and maintenance challenges.

Why Do Businesses Include Hyperscalers When Building a Platform?

Currently, Amazon AWS, Google Cloud Platform, and Microsoft’s Azure are the three leading hyperscale cloud service providers. Alibaba may also be regarded as a hyperscaler in China. The clients who use such platforms benefit greatly.

The following are a few of the extremely potent value drivers that businesses can try to exploit from hyperscale cloud platforms:

Cost: Due to a huge investment made by the hyperscale provider in tools and intellectual property (IP), using the cloud to expand and enhance a customer’s capabilities is incredibly affordable.

Scalability: The hyperscale platforms enable the speedy and seamless handling of enormous volumes of activity and data.

Interoperability: The cloud platform from the hyperscale provider integrates with other systems, making it less expensive for the client to adopt and integrate.

It is easy to comprehend why the majority of businesses choose to incorporate these advantages into the platforms they build. But a hyperscale cloud provider’s presence goes much beyond just offering cloud services. While choosing a cloud platform, business decision-makers need to be aware of the effects that hyperscale providers’ actions will have.

Recommendations to Maximize the Potential of Hyperscale Cloud in the UAE

First, government entities will be able to enhance data security and accelerate the adoption of technology through the harmonization and simplification of digital and data legislation on the federal and emirate levels.

Second, the UAE government can collaborate with businesses in the technology industry and the private sector to bridge the digital skills gap by implementing digital training and upskilling initiatives. Creating the groundwork for a locally based workforce that is digitally capable can lead to innovation and entrepreneurship.

Finally, there is potential for more cooperation between regulators and technology firms to make sure that present and upcoming restrictions do not prevent the widespread adoption of technology.

Also Read: Three business trends that will determine how cloud technology develops in the UAE

Final Verdict

Adopting the hyperscale cloud would also help the UAE maintain its position as a leading worldwide center for innovation and start-ups while meeting its data needs in the future. The UAE has been ranked top in the 2022 Global Entrepreneurship Index and plans to have 20 tech unicorns by 2030, highlighting its huge ambition to be a global Entrepreneurial Nation. Key policy goals at the sub sector level will need not only a faster adoption of an entrepreneurial culture but also a stronger reliance on data. For instance, medium-term goals like the Dubai Autonomous Transportation Strategy, which intends to automate a quarter of all transportation in Dubai by 2030 will require strong digital infrastructure and cloud access. Such important policy objectives will necessitate large-scale public cloud data services with low latency, high availability, and reliability, as well as access to hyperscale cloud’s AI and Machine Learning capabilities, highlighting the significance of having a cutting-edge digital infrastructure to support future readiness.

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