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North Africa’s enterprise infrastructure market continues to enjoy strong growth

The North Africa enterprise infrastructure market, which includes servers and external storage, recorded year-on-year (YoY) growth of 24.6% in the third quarter of 2022 to total $70.52 million, according to research from International Data Corporation (IDC). The firm’s latest Tracker data shows that over the first three quarters of 2022, the region’s enterprise infrastructure market was up 31.2% on the same period in 2021, which represents a positive sign of market recovery from the impact of the COVID-19 pandemic.

The latest edition of IDC’s Worldwide Quarterly Server Tracker indicates that revenues in North Africa’s server market increased 14.5% YoY in Q3 2022 to reach $37.24 million, up from $32.53 million in Q3 2021. Meanwhile, IDC’s Worldwide Quarterly Enterprise Storage Systems Tracker reveals that revenues in the region’s enterprise external OEM storage systems market grew 38.2% over the same period to reach $33.28 million.

In terms of revenues, Egypt and Morocco were the region’s biggest enterprise infrastructure markets in Q3 2022. The Egyptian market reached a value of $52.67 million for the quarter, accounting for 74.7% of the total North Africa market. Morocco saw revenues of $10.34 million for a 14.7% share of the region’s enterprise infrastructure market.

“While macroeconomic factors have had an impact on IT spending in the North Africa region, most organizations across different sectors have become more aware of the significance of upgrading and maintaining their infrastructure as they strive to keep up with the pace of digital transformation in their respective countries,” says Bassant Sallam, a research analyst at IDC. “In order to support digital transformation (DX) and the proliferation of applications and workloads, the demand for servers and storage is expected to continue to increase over the coming quarters.”

In Egypt, the public sector is the largest spender on infrastructure hardware as it plays an important role in driving the DX process across the country. The BFSI sector was the next biggest spender on infrastructure hardware in Egypt in Q3 2022, with significant investments and infrastructure upgrades being undertaken as part of organizations’ DX strategies. In Morocco, the biggest drivers of infrastructure hardware spending in Q3 2022 were the BFSI and telecommunications sectors. These two sectors are the key drivers of digital acceleration in the Moroccan economy as they continuously invest in infrastructure upgrades to align with digitalization projects and application modernization initatives.

CT Bureau

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