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Efficiency built the Middle East’s first wave of cloud adoption. Risk is shaping the next

The push for control, flexibility, and sovereignty is redefining cloud strategy

Efficiency built the Middle East’s first wave of cloud adoption. Risk is shaping the next
[Source photo: Krishna Prasad/Fast Company Middle East]

Across the Middle East, organizations are no longer treating data strategy as an IT function, but as a core business priority tied directly to risk, continuity, and long-term competitiveness. “Technology strategy is now more closely linked than ever to the assessment of a broad array of risks, with organizations evaluating not just performance and cost, but also exposure to regional instability and systemic disruption,” says Shukri Eid, General Manager, IBM Gulf Levant and Pakistan. This shift in priorities means that enterprises are moving from efficiency-led models to resilience-driven architectures.

Partly this is due to recent global developments. “Scenarios that were once considered unlikely, including disruptions across multiple sites and potential damage to telecom and energy infrastructure, have emerged as imminent concerns.” Additionally, businesses across the Gulf have noted how a single provider, region, or operating model creates concentration risk, further exposing vulnerabilities in traditional cloud strategies. “That is now understood not just at an IT level, but at a board level,” says Eid. 

Given the prioritization of flexibility, control, and risk distribution over simplicity, multi-cloud strategies are emerging as a favored approach. “Organizations should diversify their cloud operators, similar to what they would do with any other type of financial investments, to ensure flexibility, mitigate risk, and build resilience against downtime, especially in today’s climate,” says Mohammad Abulhouf, Vice President & GM, Middle East & Africa at Nutanix. 

The business case is compelling, says Abulhouf, noting that a multi-cloud strategy gives customers leverage and negotiating power while enabling access to specialized innovation, as certain cloud operators excel at certain services more than others. “Being able to invest in different operators allows you to get the best of all of them,” he says.

Additional key drivers accelerating this include regulation, especially in sectors where requirements around data, access, and jurisdiction are becoming more defined, as well as a noticeable shift in market mindset. “Organizations want to retain control over how their systems run, how data is governed, and how workloads can move over time,” says Eid.

DATA SOVEREIGNTY 

This need for data sovereignty is especially pronounced in the UAE, says Eid, where it is not just a compliance issue but a decision driver shaping architecture and infrastructure. According to the IBM 5 Trends study, 63% of UAE executives are concerned about reliance on specific regions for compute, compared with 50% globally. The sharper understanding of dependency risk is reflected in the sustained investment in in-country capacity, sovereign environments, and more structured cloud ecosystems.  

This heightened awareness is translating into action, Eid notes. Organizations are bringing certain workloads back on-premises to maintain control and ensure continuity. Gartner’s identification of “geopatriation” as a key 2026 trend reflects this shift, as organizations rethink workload placement to manage geopolitical risk.

This is leading to a more deliberate approach, with organizations not just adapting to the cloud faster but designing infrastructure with resilience, control, and long-term flexibility, strategically placing workloads where they fit best, says Eid.

Abulhouf confirms that data sovereignty is non-negotiable even in Saudi Arabia. In their Saudi Enterprise Cloud Index report, 78% of IT executives view it as a “must include” in infrastructure decisions, higher than the global average. This aligns with hyperscalers’ expanding regional presence, as many operate or plan local data centers.

This is also increasingly intersecting with AI use cases. “The rate of AI applications being developed, deployed, and adopted is far faster than anywhere else we have seen,” he says, adding that “AI Sovereign Use Case” is an emerging issue with more customers wanting global innovation with local control.

THE CHALLENGE OF BUILDING A UNIFIED DATA ARCHITECTURE

While multi-cloud enables resilience, it also introduces a new layer of complexity, particularly in relation to its fragmented implementation. As Levent Ergin, Chief Strategist for Agentic AI, Regulatory Compliance & Sustainability at Informatica from Salesforce, explains, many organizations approached it use case first, infrastructure second, creating a patchwork of duplicated datasets, conflicting versions of the truth, and data spread across silos that don’t talk to each other.

“This is why you see AI pilots perform brilliantly, but it doesn’t scale across the enterprise because the underlying data isn’t consistent, trusted, or governed,” he says. “Now layer resilience on top, especially given recent geopolitical disruptions, and those cracks widen fast.” It’s not about managing fragmentation anymore, but about recovering and replicating across environments that were never designed to work together.

For Ergin, the organizations getting this right are flipping the model by first identifying business-critical processes and the data that underpins them, what he calls the “crown jewels,” and then designing a unified data architecture around that. “It’s only after this is in place that cloud strategies follow.”

Further elaborating on mult-cloud complexities is Salman Ali, Senior Manager,  Solution Engineering, GCC, at Riverbed Technology, who stresses that the biggest blind spot is that critical traffic is no longer flowing through places IT teams can easily see or control. “When you spread workloads across different cloud providers, you lose that single line of sight. Then you layer on Zero Trust (a cybersecurity paradigm where traffic is encrypted and segmented by design) and suddenly even more of that visibility disappears.”

This lack of visibility fundamentally changes how organizations operate. What this creates, he explains, is a reactive model: teams only identify issues after users report them, as early warning signals are buried across fragmented systems. This has a knock-on effect on AI. “AI is only as good as the data behind it,” he says. “If your visibility is patchy, your insights will be too, and that drastically limits how far you can really go with automation.”

In response, organizations are shifting toward unified observability, focusing on capturing granular data across endpoints, cloud workloads, and network paths.

WHEN REGULATION BECOMES ARCHITECTURE

Regulation is no longer just influencing strategy; it is actively shaping architecture. So much so that Ergin believes it is playing a more significant role than traditional cost or performance considerations. “In the Middle East, multi-cloud is as much a regulatory design decision as it is a technical one.”

An enterprise in the UAE or Saudi Arabia, for example, might want to centralize analytics in one region, run core applications in another, and share data across borders. While on paper this is straightforward, in practice it requires navigating cross-border transfer rules, ensuring equivalent levels of protection, and implementing legal and operational safeguards.

“Suddenly, architecture decisions become jurisdictional decisions,” he says. “The most mature organizations are building policies and controls into the architecture itself so that compliance isn’t a bolt-on, it’s baked into how data is created, shared, and consumed across clouds.”

This shift also redefines what a “single source of truth” actually means. To achieve it, Ergin recommends a mindset shift, noting that a single source of truth isn’t about eliminating fragmentation, but managing it with discipline. “Organizations need to align on what data actually matters, who owns it, and what ‘good’ looks like in terms of quality, consistency, and trust.”

THE USER EXPERIENCE GAP

Ultimately, this complexity surfaces at the user level. “In theory, end users shouldn’t feel any of this complexity. But in practice, they often do,” Ali says. When workloads are distributed across platforms such as AWS, Azure, and private clouds, the user experience becomes dependent on multiple interconnected networks, each of which can introduce latency or performance degradation. Consistency, rather than capability, becomes the real challenge. “Without a unified view, IT teams are essentially piecing together a puzzle while the clock is ticking.”

In sectors like banking and government, this becomes more pronounced. These organizations are deliberately architected for resilience and compliance, but must also meet extremely high expectations for seamless, always-on services, making the margin of error incredibly small.

“Recent events in the region will also accelerate the move to multi-cloud,” says Ali. “However, if organizations approach this from the perspective of resilience alone, then it won’t be enough. Success is likely to be measured on two fronts: how well you can maintain uptime, and how consistently you can deliver a high-quality user experience while doing it.”

The reality, however, is that many organizations are still in transition. While the region has no shortage of providers and infrastructure, many are managing environments with a mix of legacy and cloud-native tools, often making decisions based on cost or familiarity.

The data makes this fragmentation clear. “In Saudi Arabia, recent research from Riverbed found that organizations are using an average of 13 observability tools from nine different vendors,” says Ali. “I’m not surprised that almost all of them are now trying to consolidate, with 95% seeing clear value in a unified approach, and 98% are actively moving in that direction, largely to improve performance and productivity rather than just reduce costs.”

The risk is not just inefficiency but lost opportunity. As Ali notes, without clean, unified data, organizations cannot fully leverage AI. “The real shift isn’t just about better tooling. It’s about rethinking how operations work altogether.”

As regional data center ecosystems expand, the Middle East is moving toward controlled interdependence. As Eid notes, while the region remains connected to global networks, it is increasingly defining the terms of that reliance, recognizing that sovereignty cannot be defined by physical location alone. This is driving cloud architectures that combine global scale with locally exercised control, effectively extending sovereignty beyond geography.

In that sense, in the Middle East, the cloud conversation is no longer about multi-cloud adoption, but about ensuring resilience, flexibility, and strategic control.

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