Market Trends of Saudi Arabia Data Center Server Industry
Blade Servers To Grow At A Faster Pace In Coming Years
- Reduced power consumption and high processing power contribute to the blade servers in data centers.
- Single or multiple server blades can be inserted or removed without distressing another running system. It reduces hardware costs, which is likely to entice industry players to adopt the technology, thereby fueling market growth. Additionally, each server blade does not consist of a distinct infrastructure and chassis, owing to which the product is relatively cheaper as compared to other solutions.
- To cater to end-user needs, the top companies are focusing on blade servers in data centers. The growing adoption of technologies such as cloud computing, AI, and IT services by businesses is propelling the use of servers in data centers.
- Saudi customers are spending more time and money online, which increases the region's appetite for e-commerce. Digital payment methods control this increase. Consequently, 26% of Saudi consumers currently use digital wallets for transactions. Cash-on-delivery accounts for between 69% and 85% of online orders in Saudi Arabia, while electronic wallets such as PayPal, Amazon Payments, and Google Wallet account for 24% of all sales. Data centers in the nation are expected to benefit from the digitization of the e-commerce sector as more data would need to be processed and stored.
- In the coming future, the evolution of ecommerce will focus on the reengineering of real-time use of data and advanced analytics to achieve these goals. Such achievements would require a large amount of data to be stored, which would drive the need for data center blade servers over the forecast period.
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IT & Telecommunication Is The Largest Market In The Country
- Based on the government's digital transformation efforts and cutting-edge technologies such as IoT and artificial intelligence (AI) in all businesses, Saudi Arabia's ICT market is expected to grow steadily during the forecast period. Operators are investing significant efforts in developing enterprise-centric or application-specific service portfolios to leverage investments in 5G networks, which are expected to boost telecom service revenues in the region.
- To advance the 2030 vision goals of digital transformation through e-commerce, digital education, digital health, smart cities, national data, and e-government, MCIT aims to develop a powerful and state-of-the-art digital infrastructure. Saudi Arabia's ICT strategy this year envisages creating more than 25,000 new jobs, growing the IT industry and new technologies by 50 percent, and increasing the sector's contribution to Gross Domestic Product (GDP) by USD 13.3 billion.
- With data growing at an exponential rate, doubling every two years, information processing and analysis tools, as well as storage technology, have become key prerequisites for any nation with a defined digital transformation strategy. Rapid cloud-based technology adoption will help hasten the country's digital transition while protecting mountains of data. With enticing investments from cloud providers such as Google and Oracle, the data center business has started to pick up steam. For instance, Oracle will work with NEOM Tech & Digital Holding Co. as the first tenant in the hyperscale data center at NEOM to serve Saudi Vision 2030. The data center will house Oracle Cloud Infrastructure (OCI), which would offer a high-performing, resilient platform for cloud services.
- Saudi Arabia is one of the first (Middle East/ North Africa) MENA countries to deploy a 5G network. According to Saudi Arabia's Communications and Information Technology Commission (CITC), the total number of provinces served by 5G was 60 out of 118 provinces at the end of the second quarter, seven more than in the first quarter of 2021. Media, video downloads, and the surge in online gaming and streaming due to the pandemic have contributed to the strong growth of the fixed Internet market in recent years.
