The Microsoft Cloud Dividend Snapshot: United Arab Emirates

An IDC Info Snapshot, sponsored by Microsoft

The Microsoft Cloud Dividend

Snapshot: United Arab Emirates

Microsoft helps individuals, teams, enterprises, and governments leverage the

data-driven services they require in a connected world. It does this by investing in

digital infrastructures connecting individuals, enterprises, countries, and regions

around the world. IDC has found extensive local benefits of a cloud datacenter

opening. This is a snapshot of those findings.

ECONOMIC IMPACT

$27.0B

$27.0 billion

4-year total accumulated

new revenue

New Revenue

Microsoft, its ecosystem,

and cloud-using clients

yearly revenue

$15.8B

21%

$7.7B

accumulated benefit from

new datacenter region

$2.5B

$5.2B

$2.5B

$2.3 billion in local spending

2021

2022

$8.1B

2023

New datacenter region

accumulated revenue

$11.2B

Other cloud benefits

accumulated revenue

2024

Over the next 4 years, Microsoft, Microsoft partners, and cloud-using customers will together generate about $27 billion

in new revenues above the 2020 level. This will drive investment in local economies, the creation of jobs, reduction in

atmospheric carbon, and investment in sustainability. Microsoft and it¡¯s partner ecosystem, to support their growing local

business, will spend about $2.3 billion in the datacenter region for services and products in local economies. The new

datacenter region will help eliminate some of the barriers to cloud adoption within the region and account for approximately

21.1% of the new revenue total ($27.0B) through 2024.

Microsoft

Partner

Ecosystem

Value

$1

2020

:

Microsoft

cloud-generated

revenue

$6.01

Partnergenerated

revenue

grows

to

$1

2024

:

Microsoft

cloud-generated

revenue

$7.76

Partnergenerated

revenue

COMMUNITY IMPACT

68,890 new jobs

16,000 skilled IT jobs

will be

Total 2020¨C2024 direct and indirect

Total 2020¨C2024

Over the next four years, Microsoft, Microsoft partners, and cloud-using customers will, together, add 69,000 jobs to

the economy, including jobs directly in their own organizations and jobs generated indirectly in other organizations.

What¡¯s more, Microsoft, its ecosystem, and IT departments in customer companies will add nearly 16,000 new IT skilled

jobs into the economy over the same period. The extent to which appropriate skills are available is critical to the local

economy capitalizing on this employment opportunity.

IDC¡¯S TAKE

For several years, the UAE government has been proactively

focusing on diversifying the economy and is striving hard to

establish a digital economy as outlined in country¡¯s Vision 2021

and Centennial 2071.

technology leaders to launch their data centers. That includes

Microsoft too. The availability of local datacenters helps the

regulated sectors to move their workloads on public cloud as it

meets the local data residency norms.

The UAE launched its Artificial Intelligence Strategy in 2017 and

became the first country to appoint a Minister for AI to drive

adoption of AI and cognitive solutions across various sectors.

A year later, UAE introduced Blockchain Strategy 2021 with

an aim to make 50% of government transactions digital by 2021

and become a paper-less economy.

COVID 19 has caused re-prioritization of digital initiatives and

entailed organizations to invest in technologies that ensure business

continuity in a world where remote work has become a norm.

These strategies and initiatives have fast-forwarded the adoption of

cloud computing which is a foundational platform for organizations

to enable agility, integration, scalability, and cost optimization.

Rising cloud uptake in the country has inspired local and global

Growing demand for cloud coupled with availability of in-country

datacenters, boosted the growth of ¡°born-in-the-cloud¡± channel

partners. At the same time, there is a surge in the cloud and digital

skills required to support the current and future modernization

plans across the country. Public and private sectors are collaborating

to create new workforce that is skilled at cloud, AI, IoT, analytics

and security.

For more information on our methodology, please see the IDC White Paper

Microsoft Cloud Dividend 2020 Assumptions and Methodology, August 2020, #US46777220

December 2020 | IDC Doc. #US47170620

All IDC research is ? 2020 by IDC. All rights reserved. All IDC materials are licensed with IDC¡¯s permission and in no

way does the use or publication of IDC research indicate IDC¡¯s endorsement of Microsoft¡¯s products or strategies.

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