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Changing Trends in the MEA Server Market

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The dynamics of the server market has been going through some major changes over the last couple of years in the Middle East and Africa (MEA). To paint a clearer picture, it is important to understand that servers are classified into different types based on their instruction sets – x86 and non-x86. The former of these are further broken down into four product categories: rack-optimized, tower, blade, and density-optimized servers. And while rack and tower servers – the traditional leaders of the pack – remain the most popular form factors, blades and density-optimized servers are both gaining ground.

Located towards the lower end of the pricing spectrum, rack servers are more likely to be adopted for projects within the government and education verticals, where price typically plays an important role in determining purchases. As such, they will continue to be the mainstays of the MEA market. Tower servers are beginning to decline in popularity, but they still hold a good share of the market, primarily due to the fact that this form factor is the cheapest.

Blades have recently become very popular in MEA, and IDC predicts that their share of the region’s market will overtake that of tower servers over the next five years. Density-optimized servers have also begun to pick up traction in the region, and IDC is expecting to see a couple of major projects in this space in Turkey and Qatar before the end of the year.

What’s interesting to note is that there has been a slowdown of server shipments to the region over the last couple of years. The major reason behind this slowdown is the growing uptake of virtualization technologies, which require less server units than was previously the case. This means that a growing number of organizations are now actively optimizing their existing installed base of servers rather than increasing their physical server capacity. And the figures back this up, with the region’s virtualization rate already standing at more than 35%.

Over on the other side of the market, non-x86 servers have been steadily declining over the last couple of years as new workloads are predominantly added on the x86 side. Typically, we are seeing a trend where organizations would rather purchase cheaper servers and virtualize them than purchase very expensive RISC, CISC, or EPIC servers.

While the MEA server market did see a slowdown in shipments during 2014, the decline of just 1% year on year compares favorably to the overall global trend, with HP and Dell respectively occupying the market’s first and second spots. This relatively strong performance was made possible by a number of significant deals that took place towards the end of the year. This includes the region’s biggest ever high-performance computing (HPC), awarded to Cray Inc. by Saudi Arabia’s King Abdullah University of Science and Technology (KAUST) to accelerate its supercomputing capabilities in both its laboratory and learning environments.

Unsurprisingly, average selling prices (ASPs) increased last year as vendors strived to hit their revenue targets at a time when volumes are falling. However, IDC is seeing a decline in ASPs this year as Lenovo and Huawei are offering prices that are 40% lower than their A-ranked rivals. To quantify this, the drop in ASP from Q4 2014 to Q1 2015 alone was 13% for all vendors combined. All that said, the MEA region continues to have a number of brand-loyal customers that prefer the more expensive options served up by HP and Dell.

While the region has seen a slowdown in server shipments over the last two years, the MEA market is expected to pick up again over the coming forecast period due to a number of reasons. Chief among these is Microsoft’s decision to end support for Windows Server 2003. Indeed, IDC expects the migration rate to pick up speed as there are still many organizations that have not yet made the switch due to the complexity of the process and the sheer number of servers that need to be rehabilitated.

The slowdown that has been seen in the purchase of servers has also driven vendors to become more innovative with their offerings, enabling them to handle different workloads and incorporate additional components like storage and networking as well. For example, Cisco’s UCS servers are sold alongside networking components. Such innovative developments will also play a considerable role in accelerating growth in the region over the coming years.

This return to growth in the MEA server market will be driven by demand for rack and blade units due to the growing requirement for Big Data computing capacity and converged systems. However, it is also worth pointing out that economic slowdowns, currency fluctuations, and government procurement issues will prevent the rate of growth from reaching its full potential in the MEA region, particularly in Africa.

The server space will doubtless continue to evolve over the next couple of years as new innovations emerge and customer demands become ever more complex. How will the major market players adapt to this change and who will emerge on top? Only time will tell, but you can be sure that it’s going to be an exciting ride finding out.

 

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THIRD EDITION OF BENTLEY’S EXTRAORDINARY WOMEN INITIATIVE WELCOMES STUDENTS FROM THE UK AND QATAR TO CREWE

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Extraordinary Women

The third edition of Bentley Motors’ Extraordinary Women initiative has concluded with students from universities in the UK and Qatar spending a week at the luxury car brand’s headquarters in Crewe, England. As part of a specially designed schedule, they met with Bentley experts and executives, went behind the scenes of its manufacturing operations, and tackled individual tasks.

Designed to encourage and develop the next generation of young female leaders, the 2024 edition of the Extraordinary Women programme has seen the students receive one-on-one mentorship over the past three months from a selection of inspirational Pioneers from the fields of technology, engineering, design, and business.

The students, who passed through a structured selection process focused around these four specific fields, came from a variety of participating universities: including The University of Doha for Science and Technology in Qatar, and the Universities of Bath, Loughborough, and Manchester Metropolitan in the UK.

Noora Al-Hajri, University of Doha for Science & Technology student, commented, “This experience has been nothing short of life-changing. Through the programme, I have gained invaluable knowledge and skills that will significantly impact my personal and professional growth. The opportunity to learn from inspiring mentors in both Qatar and the UK has been particularly enriching. Their guidance has broadened my horizons, challenged me to think critically, and empowered me to pursue my dreams with renewed confidence. The opportunity to visit the Bentley headquarters at the end of the programme has also been truly awe-inspiring. Thank you, Bentley, for believing in us and for creating such a transformative programme.”

The Pioneers were equally carefully selected. In the UK, entrepreneur Sara Davies MBE, founder and owner of Crafter’s Companion and TV personality from BBC One show Dragons’ Den, provided business mentorship, with Cecilia Harvey, founder of Tech Woman Today, offering the same in the field of technology.

Titi Oliyide CEng MIET, Senior Process Safety Engineer and winner of the 2023 Young Woman Engineer of the Year, mentored the engineering student, and renowned interior designer and Founder of Studioilse, Ilse Crawford provided design support.

The four Qatari Pioneers included Qatar’s UNESCO art ambassador, Muna Al-Bader, in the field of design. Dr Noora Fetais Al Marri, honoured by the Arab Women of the Year 2024 awards for her contributions to cyber security. Education and founding President of the Arab Association for Cyber Security, offered technology mentorship.

Covering the field of engineering was Dr. Hanan Farhat, founder of the Qatar Association for Women Engineers, and Dr. Buthaina Al Ansari in the field of business, who is a senior advisor at the organisation that established Tamkeen Training and Consulting Solutions.

Member of the Board for Human Resources at Bentley Motors, Dr. Karen Lange, commented, “With every year, the Extraordinary Women programme grows stronger, as exemplified by the quality of this year’s Pioneers, all who have generously given their time in the spirit of collaboration as we seek to build a legacy for young women. It has been a great honour to meet and engage with such talented young women during their visit – witnessing their energy and ability fills me with great optimism for the future.”

Launched in the UK and Middle East in 2022, the Extraordinary Women initiative has previously engaged students and Pioneers from the United Arab Emirates, Saudi Arabia, and the United Kingdom. It forms part of Bentley’s wider commitment to diversity, equity, and inclusion under its Beyond100 strategy, and was created to encourage women to explore a variety of career paths in the STEM and automotive sectors.

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Financial

Reem Finance signs with Network International to accelerate digital transformation

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Network International (Network) has announced the signing of a strategic partnership with Reem Finance, the leading financial services provider in the UAE. The strategic alliance aims to leverage Network’s expertise to provide a fully-fledged payment processing solution to support the digital transition.

The partnership with Network complements Reem Finance’s focus on offering customers with a unique banking experience in tune with the digital age. The scope of services includes a comprehensive range of products and services from transaction processing, card hosting and management, as well as value-added services. As the region’s largest payment solutions company, Network is committed to supporting the UAE financial services sector by providing innovative solutions to customers and enhancing the experience of consumers.

Navneet Dave, Managing Director & Co-Head of Processing – Middle East at Network International, commented, “We are thrilled to partner with Reem Finance as we jointly deliver innovative digital payment solutions that offer an effortless and secure experience for customers. Our collaboration builds on Network’s three decades of experience and expertise in creating world-class digital payments infrastructure and services for clients. It underscores Network’s commitment to empowering our partners with cutting-edge processing services and value-added solutions and driving growth in the UAE financial services industry.”

Mr. Seraj Faidi, CEO of Reem Finance,said: “As part of our ongoing commitment to enhancing the quality of our products and services for our esteemed clients, and in light of our recent collaborations with prominent service providers and partners, we are delighted to partner with Network International to explore innovative paths to accelerate digitizing our services to better serve our customers. This engagement is an important step for Reem Finance in expanding our capabilities to provide top tier, friendly and easy to use services to our customers. We are confident that with Network International, the processing of card transactions related to both consumer and commercial sectors will be state-of-the-art and seamless. We are committed to playing a vital role in elevating the financial system in the UAE, delivering value to our shareholders, and prioritizing the needs of our clients.”

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Financial

Wio Bank Redefines SME Banking with New Embedded Finance

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Wio Bank PJSC is introducing a new embedded finance service designed especially for the UAE’s small and medium-sized enterprises (SMEs). This initiative includes strategic partnerships with leading accounting software platforms Zoho Books, Fiskl and Wafeq, aiming to embed banking services into daily business operations and simplify financial management.

Wio Business, the bank’s first digital banking application, caters to micro, small, and medium enterprises (MSMEs), as well as freelancers and entrepreneurs. By directly integrating with accounting and financial management systems through APIs, Wio Business facilitates seamless financial workflows, enhancing management and eliminating the need for third-party intermediaries. This integration automates bookkeeping, significantly reducing manual labor and allowing businesses to concentrate on their core activities.

Jayesh Patel, Chief Executive Officer of Wio Bank PJSC, shares his vision for the new service: “By adopting Embedded Finance, we are transforming how businesses manage their finances. Our direct integration initiative simplifies how financial services are delivered and managed, making it easier and more transparent for SMEs.”

With over 94% of UAE businesses categorized as SMEs and significant contributors to employment, Wio Bank’s new service is tailored to meet a vital market need. This initiative, along with its strategic partners, is designed to simplify business operations, allowing them to thrive by focusing on growth rather than administrative financial tasks.

A New Era of Financial Management

Through Wio Business, companies can now link their accounts with selected software platforms such as Zoho Books, Fiskl, and Wafeq, offering a holistic view of their financial health. This integration eliminates the dependency on third-party intermediaries, simplifies financial workflows, ensures real-time financial insights with automatic updates, and streamlines accounting tasks with features like auto-reconciliation of bank statement. Additionally, integrating Wio Business APIs into Corporate ERPs and payment platforms facilitates automated account payables and instant transaction reconciliation, thus reducing manual labor and errors, and enhancing cost efficiency and operational gains.

Wio Bank was established to redefine banking in the UAE for both businesses and consumers. Its second digital offering, Wio Personal, is a day-to-day banking platform that changes how individuals see, manage, and grow their money. It provides users with unprecedented financial visibility and flexibility, serving as a foundation for achieving personal financial goals with an engaging experience that includes smart cards and exciting rewards.

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