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Enterprise sector fueling the demand for cloud-based services

South Africa takes early lead in adoption of cloud technology in Africa

Routed Managing Director Andrew Cruise
Andrew Cruise Routed Cloud presentation at Teraco in Isando. 19 November 2019 Photograph: John Hogg
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The heated competition between the cloud computing giants in the international market has finally reached Africa. The continent’s appetite for cloud access and other associated services is on the rise –  a trend that has not gone unnoticed.

Andrew Cruise, who is the managing director at Routed, a neutral cloud infrastructure provider, indicates an increase in the ability of enterprise customers to access cloud and associated services. He pointed out the “added pressure” on managed service provider channels, (MSP).

Xalam Analytics recently released Rise of the African Cloud report that agrees with the notion that Africa is ready for cloud technology. Counties like Mauritius, Kenya, Tunisia, Morrocco, and South Africa have the infrastructure that can accommodate cloud technology.

Cruise believes that South Africa can pioneer the adoption of cloud-based technology. He believes an increased awareness of the use of this technology and its adoption in certain key sectors will ensure the channel can accelerate its adoption.

Revenues from cloud services in the continent are at $1.7 billion, a figure expected to double by 2023. This will be the fastest-growing segment in the ICT market. Infrastructure as a Service (IaaS) is expected to be among the biggest revenue earners in the cloud. Adoption will still remain low, roughly 30 to 40 percent.

South Africa accounts for 75% of the cloud market revenue earnings in the continent. As well as 60% of all enterprise ICT service revenues. An indication of their role as a vital pillar in the advancement of technology across the continent.  Cruise believes all players should commit to the development of a “resilient and strong” cloud market.

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