Oracle to Invest US $1.5 Bn to Meet Cloud Demand in Saudi Arabia
Introduction to Oracle’s $1.5bn Gulf Strategy
In April 2021, Oracle announced its $1.5 billion Gulf strategy. The goal of this strategy is for Oracle to focus its efforts on the most promising and rapidly expanding markets in the Gulf region; specifically, Saudi Arabia and the United Arab Emirates. Oracle plans to invest in cloud computing infrastructure and customer centers, along with the acquisition of the cloud, security, artificial intelligence and analytics technologies while also focusing on local partnerships with talented innovators.
The goal of Oracle’s strategy is to provide customers in the Gulf region with the power of Oracle’s cloud powered solutions, take advantage of the potential opportunities that exist in the region, and expand its presence beyond the UAE and Saudi Arabia.
Benefits of Oracle’s Gulf Strategy
Oracle is determined to help the regional countries of the Gulf Cooperation Council (GCC) unleash the potential of cloud computing, promote economic and financial growth, create jobs, and cultivate partnerships to drive the development of the technology industry in the region.
Oracle’s $1.5 billion Gulf Strategy has numerous benefits for the organization and for the countries it is investing in. Some of the key benefits of the strategy include.
Investment in the Region
Oracle is investing $1.5 billion of capital in the Gulf region. This investment will be put towards strengthening existing infrastructure and offering Oracle Cloud technology, cloud services, and customer centers. This includes a focus on creating cloud-enabled capabilities and local language support.
Increased Cloud Computing Capacity
By investing in the infrastructure of the region and providing cloud computing services, Oracle will be able to increase the GCC’s overall capacity for cloud computing. This is expected to accelerate its digital transformation efforts, helping the region to remain competitive in the global technology race.
Support for Startups in the Country
The strategy also includes projects to help drive the growth of startups in the region. Oracle will invest in startups and technology infrastructure, as well as provide training and mentorship for new ideas and businesses. This is designed to create a thriving ecosystem of innovation in the region.
Oracle’s Expansion into the Gulf Region
In its effort to expand its presence and services in the Gulf region, Oracle is taking a three-pronged approach. It is investing in large enterprises, startups, and cloud infrastructure projects. It has already established strategic partnerships in order to tap into the local knowledge and expertise of some of the region’s most innovative organizations.
Establishing Strategic Partnerships
Some of these strategic partnerships have included agreements with large regional organizations, such as Emaar Properties and Mubadala. These partners will be integral in the implementation of Oracle’s regional strategy and in helping Oracle to further penetrate the market. Oracle has also partnered with the renowned King Abdulaziz City for Science and Technology in Saudi Arabia.
Building Cloud Infrastructure
As part of its strategy, Oracle plans to build cloud computing data centers and customer centers in the region. The data centers will be powered by Oracle’s second-generation cloud platform, which offers customers the reliability and scalability that are necessary to keep up with the rapidly growing demand for cloud computing.
Creating Job Opportunities
The Oracle strategy is expected to create thousands of jobs in the region in areas such as cloud technology, cybersecurity, analytics, and artificial intelligence. This will result in an increased demand for the right kind of talent, helping the region to remain competitive in the global technology race. Additionally, it will provide an opportunity for local talent to gain the skills and experience necessary for digital transformation.
Cloud Computing Demand in Saudi Arabia
Although digital transformation is on the rise in Saudi Arabia, the demand for cloud computing services still lags behind that of some of the more advanced countries in the region. There is a growing demand for cloud-based services in the Kingdom, however, and Oracle is determined to help the country meet this demand.
Growth of Demand
The growing demand for cloud-based services in Saudi Arabia is a direct result of the country’s increasing awareness of the benefits of cloud computing. Over the past few years, organizations in the Kingdom have become increasingly interested in using cloud-based platforms to store, manage, and analyze data, helping them to remain competitive in the global market.
Challenges of Meeting this Demand
Despite the increasing awareness of cloud computing in the Kingdom, there are some challenges associated with meeting the demand. The lack of local cloud infrastructure and qualified personnel is one of the biggest hurdles that organizations in the Kingdom face. Additionally, there are regulations and data privacy laws that must be taken into consideration when setting up cloud infrastructure.