Intelligent CIO Middle East Issue 04 | Page 42

COUNTRY FOCUS: SAUDI ARABIA The Data Centre can be a critical part of IT development in the Middle East region as it is a key component in attracting local and global investment value-added partners. There was broad agreement that the economy as a whole will benefit if end-user organisations start to work more closely with international partners, but that there also needs to be complete alignment between these vendors and the local businesses they serve – both on a financial and strategic level. In fact, the overriding message from the day’s discussions was that high levels of collaboration between the vendor and end-user communities are critical if the Kingdom is to maintain a sustainable IT market. In keeping with this spirit of increased collaboration, there were also suggestions that the Kingdom would benefit from the establishment of more public–private partnerships (PPPs) as the current level of investment in smart initiatives within the country remains rather immature. The consensus from the discussions was that Saudi Arabia should learn from established global best practices in the PPP arena to ultimately build an environment where private entities are able to invest in the government to the benefit of both the businesses themselves and the economy as a whole. “While the discussions undertaken by this panel happened before the announcement of the Saudi government’s budget, the majority of their pronouncements aligned neatly with the budget’s direction,” says Abdulaziz Al-Helayyil, IDC’s regional director for Saudi Arabia, Kuwait, and Bahrain. “IT will be one of the main drivers of government transformation, although more business justification will be required before additional IT spending is approved and the shift to OPEX spending models gathers pace. Such justifications may include price benchmarking, best practices, ROI calculations, or transformation plans with services benchmarking, and I expect there to be some lag in the launch new initiatives while these business justifications are provided.” The rise of data centre infrastructure The Data Centre can be a critical part of IT development in the Middle East region as it is a key component in attracting local and global investment from the IP, telecoms, hosting, integrator, BPO and IT outsourcing sectors. New investment taking place from all of these sectors are seen as being a key part of modernising and diversifying the economies of those countries. However, the investment in data centre facilities for third party use also needs to be suppo