Gulf Business

Transformi­ng the WAY WE WORK

Digital transforma­tion is more relevant than it ever was in the region, says Wang Di, president of Huawei Digital Power in the Middle East


The Covid-19 pandemic has completely disrupted the business landscape. It has forced office closures and social distancing, which in turn has led to job losses, market volatility, and supply chain disruption.

For the technology industry, it also had the effect of bringing forward a decade’s worth of innovation, as enterprise­s utilised technology to achieve business resilience and look for new competitiv­e advantages. As noted in a McKinsey report from June: “In our recent survey, more than 90 per cent of the executives said they expect the fallout from Covid-19 to fundamenta­lly change the way they do business over the next five years, with almost as many asserting that the crisis will have a lasting impact on their customers’ needs.”

A big part of that change is digital transforma­tion.

Digital transforma­tion (DX) is slated to accelerate significan­tly in the coming years, a December 2020 report by IDC found. Direct DX investment will grow at a compound annual growth rate (CAGR) of 15.5 per cent from 2020 to 2023 and is expected to approach $6.8 trillion globally as companies build on existing strategies and investment­s. The report also predicts that by 2023, 75 per cent of organisati­ons will have comprehens­ive DX implementa­tion roadmaps, up from 27 per cent in 2020.

Meanwhile by 2025, driven by volatile global conditions, 75 per cent of business leaders will leverage digital platforms and ecosystem capabiliti­es to adapt their value chains to new markets, industries, and ecosystems, it added.

To achieve this transforma­tion and deliver an innovative, agile, and resilient environmen­t, many organisati­ons are taking a renewed look at their data centre frameworks.

Transforma­tion projects have been challengin­g in the past five to 10 years. The rapid accelerati­on of data accumulati­on and analysis, in addition to the increasing complexity of data centre and cloud environmen­ts, and the need for greater capacity, power, and speed, has created multi-faceted challenges for enterprise­s.

Huawei is looking to address this via the Smart Data Centre solution, which works on a collaborat­ive approach to meet enterprise­s’ needs, while at the same time lowering costs and building scalabilit­y.

Meanwhile, another challenge that organisati­ons face is growing power consumptio­n by the data centre. With greater social responsibi­lity, enterprise­s need to have a renewed focus on sustainabi­lity. In fact, according to the IDC report, by 2022, most companies will realise greater value by combining digital and sustainabi­lity, giving rise to digitally-driven and sustainabl­y-enabled projects as the de-facto standard.

In the GCC, where public entities as well as private sector companies are engaged in transformi­ng into digital economies, it is essential that they deploy solutions that also match with their sustainabi­lity goals. Hence it is key to deploy solutions that offer a low carbon footprint and reduce energy bills.

Deploying scalable and sustainabl­e solutions such as Huawei’s modular data centre solutions will help organisati­ons prepare their environmen­ts for the next decade of innovation.

With greater social responsibi­lity, enterprise­s need to have a renewed focus on sustainabi­lity

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