Oracle to invest US $ 1.5 billion to meet KSA cloud demand
Richard Smith , Executive Vice President , Technology – EMEA , Oracle , tells us the investment will rapidly accelerate cloud transformation across the Kingdom ’ s business and public sectors .
W ith KSA set to be the fastest-growing economy worldwide in 2023 , Oracle has outlined plans to open a third public cloud region in the Kingdom . Located in Riyadh , the new cloud region will be part of a planned US $ 1.5 billion investment from Oracle to expand the Kingdom ’ s cloud infrastructure capabilities .
“ Oracle ’ s investment will rapidly accelerate the cloud transformation across Saudi Arabia ’ s business and public sector ,” said Richard Smith , Executive Vice President , Technology – EMEA , Oracle .
The Oracle Cloud Riyadh Region will join the soon to be expanded Oracle Cloud Jeddah Region and the planned Oracle Cloud Region in the futuristic city of NEOM .
This investment is included in an MoU that Oracle has signed with the Ministry of Communications and Information Technology ( MCIT ) to help Saudi Arabian businesses take advantage of the latest innovations in the cloud .
“ In the last century , Saudi Arabia transformed its economy by developing the infrastructure needed to produce , refine , process and transport hydrocarbons . This century we are committed to creating the digital infrastructure that will underpin future economies ,” said HE Khalid Al-Falih , Minister of Investment .
“ Oracle ’ s decision to expand its cloud computing capacity in the Kingdom will play a key role in unlocking the opportunities that rapid technological advancements are creating . MISA will continue in its quest to enable the building of a robust digital infrastructure , by creating an attractive environment for these investments – for example , by establishing special economic zones tailored to particular industries such as cloud computing and Digital Transformation .”
As part of the MoU , Oracle will also work with MCIT and the Communications and Information Technology Commission ( CITC ) to establish a commercial and operational model for an additional KSA cloud region .
“ Oracle ’ s announcement is a significant milestone in Saudi Arabia ’ s rapidly evolving tech landscape and indicative of the growing demand for public cloud services that exists within the Kingdom . IDC estimates that public cloud spending in Saudi Arabia will increase at a CAGR of 26.8 % over the coming years to reach US $ 3.1 billion in 2026 , spurred by organisations looking to leverage the power of the cloud to modernise their critical business applications and become cloudnative ,” said Jyoti Lalchandani , Group VP and Regional MD , Middle East , Turkey and Africa , IDC .
“ With Saudi Arabia set to be the fastest-growing economy worldwide in 2023 , the opportunity it presents is unprecedented . Technology spending in the Kingdom is poised for strong growth , with cloud computing , among other technologies , facilitating large-scale innovation and transformation across industries and economic sectors .” “ IDC expects in-country investments by cloud hyperscalers to intensify further as 73 % of Saudi CIOs who responded to our recent survey stated they would move critical applications and data to a public cloud as long as the data resides in an in-country datacentre ,” Lalchandani said . •
INTELLIGENT TECH CHANNELS 4343