Friday 30 March 2018

Microsoft launches Middle East data centers as it steps up cloud challenge to Amazon



Microsoft is set to launch its first Middle East data centres in UAE by early next year and expand the data centers at the same time in Switzerland, France, and Germany, as it continues to grow its cloud-computing activities.

The UAE has always been at the front line of embracing new innovations and always been supportive of new technologies, such as mobile app development to integrate with citizen services. Considering this, big tech companies, including mobile app development companies started their services in UAE.

Enormous tech organizations have shown enthusiasm for the region, particularly in the UAE, to open their data centers. Amazon web services has a data Centre in Bahrain and an office in Dubai while Alibaba Cloud, the cloud computing arm of Chinese e-commerce giant Alibaba Group, is planning to open its second data Centre in Dubai by early 2019. Oracle, on the other hand, is going to launch the Abu Dhabi data Centre soon by August. Microsoft is competing to expand into new areas against Amazon. Its first ‘Middle East data centers’ will be located in Dubai and Abu Dhabi, and will offer the U.S technology giant’ cloud computing product Azure, Office 365 and Dynamics, to help organizations to quicken their digital transformation journey, specialists noted. Over the last three years, Microsoft has dramatically increased the number of regions where Azure, the cloud-computing platform of Microsoft, is available. With the new offices, Microsoft has 50 Azure data centres across the world and they believe this is the highest among all the cloud providers.

"We see tremendous opportunity in MEA (Middle East and Africa) for cloud innovation to be the key driver of economic development, and also provide sustainable solutions for some pressing issues such as youth employability, education and healthcare," Samer Abu-Ltaif, president of Microsoft Middle East Africa, said in a press release.

Investment into the UAE data centers expand on Microsoft’s essence in the region for over 20 years. Over the region, Microsoft is supporting 4,000 start-ups and with the local data Centre, more are required to come locally available.  Microsoft declined to give the estimation of investment into the Middle East data centers, or any other details on the potential number of employments that may be created. The company additionally did not give information about upcoming cloud sites in the region.

The regional general manager of Microsoft in the Gulf region, Sayed Hashish said “Driven by strong customer demand for cloud computing, local data centres were the logical next step given the enormous opportunity that the cloud presents,”
He did not mention whether Microsoft will have dedicated data centres or leased data centres. According to market specialists, it would seem that Microsoft is leasing the data centres space from Etisalat.

Microsoft and Amazon’s race to open new markets in the region is pegged to the greatest economies grasping digitization. There is an uptick in e-commerce and economic expansion agendas that hope to diminish dependence on oil and assemble knowledge-based economies as set out in the UAE’s Vision 2021 plan and Saudi Arabia’s Vision 2030.

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