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Saudi Telecom Company (STC) signed a memorandum of understanding (MoU) on Monday with New Jersey-based Commvault for cloud backup services.
The agreement – which was signed at the GITEX exhibition in Dubai – will see the two companies collaborate on new cloud solutions targeting the public sector and enterprises in Saudi Arabia.
Under the MoU, Commvault will deliver a backup-as-a-service solution, which is a service that backs up data on an off-site server.
“Saudi Arabia is witnessing tremendous growth, with huge potential for cloud adoption and backup-as-a-service implementations,” said Tarig M. Enaya, senior vice president of STC Enterprise Business Unit.
Earlier this month, analysts forecasted a drop in the third-quarter earnings of Saudi Arabia’s telecom companies, with STC’s profit expected to plunge 11 percent, according to data compiled by Argaam.
A key factor expected to affect earnings is the passing of a new system by the kingdom’s telecom authority requiring all telcos to use a fingerprint system to register their clients.
The decision is expected to result in a drop in the number of subscribers for all three operators: STC, Zain Saudi, and Mobily. During Hajj season, however, the market saw high demand for prepaid SIM cards, which is expected to reflect positively reflect on Q3 results.
Write to Jerusha Sequeira at jerusha.s@argaamnews.com
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