Africa Cloud Computing Overview and Market Sizing 2019 report, which shows that the growing adoption of cloud computing in South Africa has democratised IT resources and made technology available that traditionally would have been out of reach of the smaller player.
For businesses considering moving to the cloud, first mover advantage is more important than ever – while supporting innovation is a key success factor in today’s highly-competitive industries.
Analytics and artificial intelligence, along with other emerging technologies, are available to businesses at a fraction of the investment that would have been required before the transition to cloud computing.
Local cloud market survey
As can be seen below from BMIT’s local cloud market survey, IT modernisation, cost optimisation, and digital transformation are factors which motivate all companies to implement cloud computing.
The ability to scale is more important to medium and large companies than small companies, whose primary motivation is to transform digitally.
Local cloud dynamics
Having reached the tipping point of cloud computing in South Africa, there is significantly less resistance to moving to the cloud in general – however, the question the market is grappling with is the “when and how” to move.
That being said, the conservative mindset of some in the IT market along with aversion to change is still challenging the industry and slowing adoption as more traditional-minded IT personnel often want full ownership and control over their IT resources – rather than the pay-per-use model that cloud has ushered in.
Data domicile and latency as objections are becoming something of the past, too, while the conversation has shifted from whether or not to adopt cloud to how to best implement cloud strategies.
With the local Microsoft Azure cloud officially going live, as well as the Huawei cloud being available in-country and the local AWS and Oracle clouds coming soon, BMIT believes this will have a significant impact on the adoption of cloud services locally.
SA cloud market size
The cloud services market in South Africa is estimated to have grown at 31% in 2018 and is expected to grow another 35% in 2019 as the multinational hyperscale (Amazon, Google, Microsoft) local data centres go live over the next two years.
Looking further into the future, BMIT forecasts the cloud services market growing at a CAGR of 28% over the next five years to R23.6 billion in 2023.
George Harbester, is a Specialist Product Manager, Clarity 360 EMEA, based in Johannesburg SA
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