More and more Dubai-based startups are using cloud computing to enable their businesses for growth and plan to spend more on it, a report from a technology park and a cloud services provider has revealed.
According to the Cloud Report 2017, 70% of Dubai startups currently use cloud computing, and 24% have even built their startups in the cloud.
The report, which surveyed over 100 startups, also found that 38% of those not yet on the cloud plan to adopt the technology shortly.
On the type of cloud services uses, 76% of the respondents opted for Software as a Service (SaaS), while Platform as a Service (PaaS) and Infrastructure as a Service (IaaS) are each used by 32% of them.
Over 33% of these startups utilized more than one type of cloud service, with 9% using all three service models.
Dubai startups on the cloud in Dubai use an average of 4.39 cloud services, with 36% using one or two services, and 18% using more than five such services.
Storage and web hosting account for a majority of the cloud services adopted, being the most widely used at 68% and 67% respectively.
Of the startups, 72% spend less than $50,000 on IT annually, 24% dedicate more than 20% of that annual budget to cloud solutions.
Going forward, 80% of startups plan to increase spending on cloud services in the next two years.
Among those who have not taken to the cloud, 42% said that they find the initial investment prohibitively high, while other concerns included data protection (27%) and security (15%).
Dubai Silicon Oasis Authority, the regulatory body for Dubai Silicon Oasis (DSO), commissioned the report (DSOA) in partnership with tech giant IBM and information provider Thomson Reuters.