Microsoft has launched a new Middle East and Africa centre of excellence for oil and gas in Dubai, built specifically to assist customers in driving digital transformation, cost cutting and optimisation of their operations.
It is the largest such centre for Microsoft globally, a statement said.
The centre will help companies in the sector take advantage of the latest trends such as the Internet of Things (IoT), advanced analytics, modern productivity and cloud computing using Microsoft technologies like Microsoft Azure and Office 365. The centre also brings together leading industry players like Accenture, Aveva, Baker Hughes, Honeywell, OSIsoft, Schneider Electric and Schlumberger.
Increasing spend on digital transformation
Despite oil price challenges, the industry is seeing increasing IT spend as a way to maintain profitability and boost productivity. According to the 2016 Upstream Oil and Gas Digital Trends Survey by Accenture and Microsoft, 80 per cent of upstream oil and gas companies plan to increase spending on digital technologies in order to help them drive leaner, smarter organisations.
The International Data Corporation (IDC) predicts that IT spending in oil and gas will increase to nearly $50 billion in 2016, while spending on connectivity related technologies should increase by 30 per cent.
“Digital transformation is top of mind for executives in the oil and gas industry, which is why we built the centre of excellence in the Middle East,” said Omar Saleh, director for Oil and Gas at Microsoft, Middle East and Africa.
“For the industry to transform, companies need to develop sound digital strategies, built on secure and agile platforms, either on a company’s premises or in the cloud. Continuous dialogue with our customers and partners is essential for enabling innovation and moving the industry forward. This is what the centre of excellence is built for.”
With 44 per cent of respondents in the 2016 Upstream Oil and Gas Digital Trends Survey reporting that investing in the Internet of Things (IoT) is their next big priority, it’s clear that in the current challenging environment the industry is focusing technologies on areas that will deliver efficiencies and savings in the short term while enabling faster decision making. Respondents also saw the greatest impact from IoT in enabling connected field workers, with 60 per cent planning to have field workers and assets digitally connected with smart devices.
Massimo Pagella, resources lead for Accenture Mena, said: “Oil and gas industry leaders continue to look to digital technologies as a way to address some of the key challenges the industry faces. They are expected to continue investing in areas that help lower operations costs, infrastructure costs and drive better asset management through analytics.”
“However, looking into the future, these companies are starting to realise that traditional cost cutting levers will not be enough to sustain future growth. Accenture’s unique alliance with Microsoft will help give this sector an opportunity not only to cut costs but also redesign businesses to thrive in volatile market conditions.”
Ensuring safety and security
As with all industries in the modern marketplace, oil and gas needs to ensure that any progress made in technology is done so in a safe, trusted, and secure way.
According to a report titled The Global State of Information Security Survey 2015, there were nearly 6 000 detected security incidents against the sector in 2014. Other research done by Symantec found that more than two-thirds of organisations in the Middle East struggle to protect themselves from sophisticated cyber-attacks, and close to 70 per cent of the region's IT experts lack confidence in their company's cybersecurity measures.
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