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00:00 How can we explain this rise in profits and what are the most important reasons that led to your profits?
00:07 Good evening and thank you for the invitation.
00:11 As you said, cloud revenue, which is the health services,
00:17 was the most affected by the rise in revenues.
00:22 This change started last year.
00:28 We tried to move the company's operations from project-based to subscription-based.
00:38 This is helping us to maintain growth and what we have achieved this year.
00:45 This leads us to the question, how much is the current contract size for the company, Mr. Eric?
00:51 And how much are you getting today on a good percentage of government contracts?
00:58 Yes, the vision for 2030 is to convert CapEx IT to OPEX,
01:09 which indirectly affects the transformation of government institutions and private institutions to consumption-based, which is cloud services.
01:18 According to our information and studies in the market, we currently own 8% of the Saudi market in the sovereign cloud.
01:27 Our backlog exceeds 120 million Riyals.
01:32 It is important to mention that clients are usually renewable for cloud services.
01:42 The 120 million Riyals we are talking about are not taken into consideration in the renewals of the contracts, which are long-term.
01:51 This is what we are trying to achieve.
01:54 That is why, if you follow the numbers for 2022-2023,
01:59 this year our mix between projects and subscription, which is the cloud, was 80-20.
02:07 This year we were able to achieve a different mix, which is 60-40.
02:12 We expect that in 2024, the mix will be 60% cloud services.
02:21 In contrast, how much is there today in an investment plan to increase investment in your products, Mr. Eric?
02:31 Will we see the expansion of the Saudi Arabian Kingdom to provide these services?
02:38 Of course.
02:40 We are continuing our investments in the sovereign cloud.
02:45 We are one of the leading companies in the Saudi Arabian Kingdom that is offering a sovereign cloud.
02:53 100% data is available completely in the country.
02:56 Today, the expansion plan is in line with 2030 vision, which is to introduce edge compute, which is also consumption-based,
03:07 to be able to reach the edge with artificial intelligence.
03:10 We are introducing bare metal services and data center as a service.
03:14 Today, we will go beyond cloud services to offer 360 degrees to help institutions transform completely from capex to apex.
03:27 Today, when we are talking about this expansion, Mr. Eric, how much funding does the company need from banks?
03:37 What is the amount of loans available to you during this period?
03:41 We have, in the previous five years, our loans were pure project loans.
03:52 We were able to work with our investors, who are mostly related to cloud investment.
04:01 We were able to mix, because as you know, it is demand and supply.
04:07 Today, we are making investments in the cloud infrastructure, how much demand we have.
04:13 We were able to work on supply chain management, we streamlined the entire supply chain, we are importing it.
04:19 We have now moved a large part of the investments from capex to apex.
04:24 We now have infrastructure, instead of making direct investments, and you know that today the interest is high.
04:33 We have moved consumption, even with our investors, into apex.
04:38 What we did is we have aligned demand with supply, without having to go to upfront investments.
04:47 Okay, you are talking about an increase in capital in this case.
04:52 Also, on the side of loans, which you are referring to, Mr. Eric, how much will you benefit from the capital gain, and how will it be used?
05:02 Of course, the increase in capital is the goal of investing in the company, to help us develop and diversify the product portfolio.
05:13 As I mentioned before, the most important point today is the artificial intelligence at the edge.
05:20 This is our focus today.
05:22 You know that there are smart cities being built in the Saudi Arabian Kingdom, including Neom and Bahrain.
05:29 Our goal is to be able to be ahead, to offer, especially if they are very smart cities,
05:38 we will be forced to be able to deploy edge compute, which is consumption-based, and you can make the cloud be on the edge.
05:50 And this is where the investments will be most in the edge and in the core data center.
05:55 But how much are you targeting with artificial intelligence today, among your products, as a market share in the future?
06:03 We expect in 2024, at least, to have acquired 1% or 2% of the market for smart cities.
06:14 In early 2025, we believe we must make a major jump, to be able to reach 10% or 12% in the Kingdom.
06:24 And of course, as you know, the supply chain for artificial intelligence is very high in international companies,
06:32 to be able to supply this infrastructure and to meet the global demand.
06:39 But of course, everything will be in line with how much companies will be able to supply us
06:45 and be able to provide these services to support artificial intelligence.
06:51 The company is still in the equilateral market, Mr. Irek.
06:54 How quickly are the plans for you to move to the main market?
06:58 And do you still have a two-year opportunity to have the opportunity to move?
07:05 Our plans are certainly expansionary.
07:10 The decision to move to the market, as you know, as you know, goes back to the board and the public association.
07:18 The main goal is to continue expanding and to take the largest share market.
07:26 And at the end of the year, I think the public association and the board will discuss this issue and we will let them know.
07:36 We wish you good luck, Mr. Irek Ernest, the CEO of the Saudi management company.
07:41 You were with us live from Riyadh. Thank you very much.