According to a recent report from Bloomberg, Microsoft is looking to open data centers in Abu Dhabi and Dubai. Thus, these would be the first of their kind in the Middle East.
Amazon recently announced its first data center in Bahrain, so Microsoft move could be seen as an effort in trying to eat from Amazon’s marketshare. Abu-Ltaif, president of Microsoft Middle East Africa, said the following:
We see enormous opportunity in MEA (Middle East and Africa) for cloud technology to be the key driver of economic development, as well as provide sustainable solutions to many pressing issues such as youth employability, education and healthcare
Microsoft looks to challenge Amazon in the cloud-computing business
Besides the Middle-East, Microsoft also plans to open two cloud sites in Switzerland and two new locations in Germany. The company announced in the beginning of this year that it’s looking to boost spending to add cloud capacity.
At the moment, the company has 42 Azure cloud regions and is looking to add even more in its race against Amazon Web Services. The logic here is simple – the closer the information and applications are to customers, the faster data transfers become.
Besides this, however, there’es also the problem of local laws. Thus, most often than not, there needs to be a legal presence of the entity in each country.
At the moment, Amazon is the largest seller of cloud services, with 62 percent, but Microsoft tries to challenge that, as it has been roughly doubling revenue in its Azure business each quarter. In the fourth quarter, Microsoft increased its market share from 16 to 20 percent, according to KeyBanc analysts.