e& and AWS strike $1bn cloud deal

• Dubai-headquartered operator and US public cloud behemoth establish new strategic alliance
• The duo are aiming to combine AWS’s cloud infrastructure and solutions with e&’s network capabilities to address ‘stringent customer requirements’ in the Middle East
• Their target markets are the public sector, small and large enterprises, and companies within regulated industries, including healthcare, finance, and oil and gas
• The collaboration includes a six-year ‘$1bn-plus’ investment plan

Public cloud giant Amazon Web Services (AWS) and United Arab Emirates (UAE)-based regional telco e& have teamed up to deliver cloud solutions aimed at spurring AI deployment and digital transformation across the Middle East.

As part of the collaboration, announced to coincide with the Gitex Global 2024 event in Dubai, the duo has signed a ‘$1bn-plus’ investment agreement over the next six years to pool resources. Combining AWS’s cloud infrastructure and solutions with e&’s network capabilities, the two companies said they will “address the most stringent customer requirements” across the public sector in the Middle East, as well as target “regulated industries”, including healthcare, finance, and oil and gas. Small and large enterprises are also on the radar.

In short, the partnership is designed to meet the region’s growing demand for secure and scalable cloud infrastructure, adhering to strict data sovereignty laws in the Middle East where sensitive data (personal, government, financial or medical data) must be stored and processed within the country.

The duo wheeled out stats from consultancy PwC stating that nearly 70% of Middle East companies plan to migrate most of their operations to the cloud within the next two years. At the top of the alliance’s agenda is delivering “core cloud services”, including storage, computing, networking, cybersecurity and artificial intelligence/machine learning (AI/ML).

AWS’s partnership with e& builds on its growing presence in the Middle East. In 2022, the US company established its ‘AWS Middle East (UAE) Region’ with a planned $5bn investment in the local economy before 2036. It is the second AWS region of its kind in the Middle East, joining another already established in Bahrain. Each AWS region consists of a minimum of three, isolated and physically separate ‘Availability Zones’ (AZ), while an AZ comprises one or more discrete datacentres.

“Our partnership with e& underscores AWS’ deep commitment to both the UAE and the wider Middle East, particularly in fast-tracking UAE Vision 2031,” said Tanuja Randery, VP of AWS’s operations in Europe, the Middle East and Africa (EMEA). “Our security infrastructure and expertise in AI and ML empowers public sector organisations, regulated industries, and enterprises with the tools they need to innovate securely and drive progress across the region,” added Randery.

Additional AWS benefits

Aside from helping it tap into growing demand for scalable cloud infrastructure, e& flagged that the agreement will enable use of AWS’s “200-plus fully featured services” to modernise its own platforms, including Starzplay Arabia (a TV streaming service) and Careem (a Middle East ‘everything app’): e& holds a majority stake in each. The UAE operator also expects the AWS tie-up to allow it to expand its AI capabilities into its smart home offerings.

Another AWS benefit, according to e&, is that “hundreds” of its small to medium enterprise customers will have access to cloud software from the AWS marketplace. 

The two companies said they will also use AWS’s Amazon Bedrock generative AI solutions to empower e&’s Middle East customers, large and small, with advanced AI to drive productivity and improve customer experiences.

“This agreement with AWS demonstrates our shared long-term strategic goal to create an ecosystem that supports today’s digital needs and lays the foundation for future growth,” asserted e& group CEO Hatem Dowidar. “We are enabling businesses across the region to lead in an AI-powered, data-driven economy.”  

- Ken Wieland, Contributing Editor, TelecomTV