Report Description

Turkey Cloud Computing Market was valued at USD 2,202.61 million in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 23.65%, owing to the rising penetration of the internet & cellular devices, growing adoption of cloud computing in small & medium enterprises (SMEs), and increasing adoption of software as a service, among others.

Cloud computing is a model for delivering computing services over the internet, rather than using local hardware or software. In cloud computing, a third-party provider hosts computing resources, such as servers, storage, databases, networking, software, and analytics, and makes them available to customers over the internet on a pay-per-use basis. Cloud computing can be a great way for businesses to save money, be more agile, and focus on their core competencies.

Artificial intelligence (AI) and machine learning are the developing technologies which are facilitated cloud expansion by allowing businesses to tap into AI capabilities. During the lockdown period, work from home, social distance, other market needs among others, where cloud computing helped many companies to overcome business continuity. Although, the remote working option is available to firms, managers and employees during the pandemic period. Currently, remote working is in trend and is anticipated to continue for a long time of period. Also, the high concentration and the growing number of small and medium-sized enterprises in India quickly transitioning to cloud computing is one of the major drivers of the Turkey cloud computing market. In addition, increasing investment in cloud data center development is likely to propel the cloud computing market across the country.

Increasing Adoption of Cloud Computing in Small and Medium Enterprises (SMEs)

Cloud computing adoption among Small and Medium Enterprises (SMEs) in Turkey is steadily growing. This technology allows SMEs to access enterprise-grade computing power, storage, and software applications at affordable rates, enabling them to compete more effectively with larger companies. Cloud computing eliminates the need for costly hardware and software investments for SMEs. Cloud service providers typically offer subscription-based models, allowing SMEs to pay on a monthly or annual basis. Ultimately, cloud computing makes it easier for SMEs to manage their budgets and reduce their IT expenses, making it an increasingly attractive option for SMEs in Turkey.

Hybrid and Multi-Cloud Adoption

Turkish-based companies have the opportunity to take advantage of a number of benefits, linked to hybrid and multi-cloud systems. With the help of this technology, companies can expand their infrastructure and resource allocation as needed, resulting in better performance and reduced costs. Hybrid and multi-cloud solutions enable companies to allocate sensitive data to private clouds while utilising public clouds to host optional activities or specialised services, thus ensuring an optimal compromise between security and convenience. Through this approach, companies are able to circumvent vendor lock-in, thus commanding greater negotiation leverage, cost optimization opportunities, and access to individually tailored services.  Moreover, these solutions enable organizations to optimize application performance for latency-sensitive workloads, such as real-time analytics, IoT, and technologies. The usage of edge computing resources and regionally focused data centres dramatically reduces latency, resulting in greater performance advantages. In conclusion, by employing hybrid and multi-cloud architectures in the Turkey cloud computing market, businesses can benefit from improved flexibility, scalability, vendor independence, data governance, performance optimization, and cost efficiency, helping them to deliver tailored solutions that meet their needs in terms of security, compliance, and application performance.

Notable Government Policies that Augment the Cloud in Turkey are Listed Below:

National Cloud Strategy:   In 2019 “National Cloud Strategy” was launched by turkey government, focusing on the rising usage of cloud services in private and public sectors. Also, the highlighted strategy on the significance of cloud computing in leading digital transformation advances efficiency and reduces costs. Additionally, it includes promoting cloud adoption in the private sector, establishing a national cloud infrastructure and supporting the migration of public institutions to the cloud.

Incentives for Data Centers: The government has employed numerous incentives to fascinate investments in data centers, which are critical for the development of cloud infrastructure. These incentives contain tax exemptions, reduced costs, and support for the establishment of technology parks and data center clusters. By boosting the development of data center infrastructure, the government aims to create a solid foundation for cloud services in the country.

Public-Private Partnerships: The Turkey government inspired the public-private partnership (PPP) in the expansion and endowment of cloud services. These partnerships aimed to influence the capability and resources of public and private sectors in order to increase the acceptance of cloud computing.

Rising Popularity of Hybrid Cloud Services

Various major market players are focusing on hybrid cloud computing services, as market players are looking to implement a hybrid policy that is beneficial for both on-premises and cloud deployment services. There is a significant need for constant need operations and infrastructure across clouds, all around the country. Thus, as a result, various enterprises and organizations are embracing the hybrid cloud model to address concerns related to long-term costs, scalability, and security across the country. Furthermore, rising investment in the hybrid cloud operating models that involve public, private, and edge environment are anticipated to rise, allowing rapid scaling and IT management. Currently, many companies employ hybrid cloud services owing to a variety of factors including improved workload management, enhanced security and compliance, and effective integration within DevOps teams. Thus, the usage of hybrid clouds or multiple clouds is expected to give rise to address security compliance, performance, and cost factors in the upcoming years.

Emergence of Open-API Economy

Most businesses view cloud services as an effective IT deployment strategy. The flexibility and data security offered by the cloud as a delivery platform continue to be the primary reasons for its adoption. Numerous businesses have transitioned to one or more cloud services, allowing new market players and startups to gain a competitive edge. With high satisfaction levels and two-thirds of end users expected to expand their cloud usage over the forecast period, the cloud is considered a credible deployment model within an organization's IT strategy. Cloud service providers are well-positioned to maintain their innovation and commercial leadership while extending their regional presence. Consequently, the cloud computing market is anticipated to be driven by increased investment in cloud-based technologies for the open API economy over the forecast period.

Turkey Cloud Computing Market Challenges

Cloud computing is used by users to keep sensitive data about their company and personal activities on cloud-based systems. However, data security and privacy worries about data loss, breaches, unplanned crises, application vulnerabilities, and internet cyber-attacks are expected to stymie cloud computing's growth. While cloud services help organizations increase productivity and decrease expenses, data stored in the cloud is vulnerable to assaults. Cloud malware injection, meltdowns, account or service hijacking, and man-in-the-cloud attacks disclose enterprise data vulnerabilities, which can lead to business shutdown and losses. Cyber-attacks, on the other hand, impair business operations, restricting the expansion of the cloud computing market.

Recent Development:

  • In November 2022, according to the central bank of the Republic of Turkey, foreign direct investment (FDI), rose to around USD 949 million in Turkey. Also, in digital transformation, the involvement of Multi-National Enterprises (MNEs) and the government has established strong investors in the overall market data center, cutting edge material technology, information technology, rising growth in public cloud application, among others.
  • In January 2023, Chinese e-commerce company named “Alibaba Group Holding Ltd” planned to manufacture a logistic hub at Istanbul airport. Additionally, it is going to install a data center near the country's capital Ankara with an investment of around USD 1 billion.