Connecting Africa is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.

Cloud

Two Years Until Infrastructure-as-a-Service Boom Hits SA

Routed, a leading vendor neutral provider of cloud infrastructure, says that the predicted growth of Infrastructure-as-a-Service (IaaS) is in line with the increasing growth forecasts for cloud computing. Andrew Cruise, managing director at Routed, says that while IaaS is seen as an emerging opportunity in Africa, the work has already started locally with demand increasing as awareness of cloud capabilities increase.

“Since launching three years ago, we have seen a steady increase in both interest and deployment of cloud infrastructure services. As cloud computing grows, so too does the need for cloud-based infrastructure resources,” says Cruise. “Without IaaS there is no Cloud: IaaS is the foundation for all Cloud services. Now that connectivity is fast, cheap and reliable we have reached the tipping point in South Africa where general interest in Cloud has switched into action.”

According to The Xalam Rise of Cloud Report 2019 South Africa is the largest cloud market on the continent. The country accounts for 75% of Africa’s total cloud revenue and Xalam says that this is unsurprising as around 60% of the continent’s enterprise ICT services revenues are generated in South Africa. Routed, which featured in the report as a leading provider of cloud infrastructure resources, says that IaaS is the fastest growing category in the African cloud space, averaging around 120% annually over the three years at 2018.

The report also estimated that around 80% of Africa’s public cloud revenue is generated from Software-as-a-Service (SaaS) applications. To a large extent this reflects the embryonic nature of this market; SaaS is a cloud starting platform for most businesses according to Xalam.

Guy Zibi, managing director, Xalam Analytics, says IaaS is seen as more of a long-term player, estimating that South Africa is two years away from a true boom: “From a low base – IaaS is the fastest-growing cloud services segment across our cloud value chain.”

Cruise says that one factor influencing the growth and potential of IaaS is what Xalam refers to as the VMWare factor. The availability of VMWare virtualisation solutions is providing African MSPs with a platform to compete with hyperscale providers on IaaS; while they can’t match the capabilities of AWS or Azure, MSPs have increasingly been able to offer local-centric IaaS services, with support and other benefits not offered by global cloud providers.

“For more than a decade, VMware’s solutions have been the go-to virtualisation and management platform for enterprises requiring uptime, security and performance on-premise. Now enterprises can be reassured that the same outcome can be delivered using specialist, certified VMware Cloud Providers, without internalising risk, or investing in facilities, hardware, software and engineering resources,” says Cruise.

Innovation hub

Story

AI's impact on African telcos

Many African telecommunications companies are turning to artificial intelligence as a differentiator to improve their mobile networks and enhance customer service and experience as they transition from traditional telco offerings into new tech-first verticals.

Story

Four AI trends to look out for in 2024

Connecting Africa has compiled a list of four artificial intelligence (AI) trends to look out for on the African continent in 2024.

More Innovation hub

Latest video

More videos

Upcoming events

AfreGov 2024
March 12-14, 2024
Kigali, Rwanda
Africa Tech Festival 2024
November 11-14, 2024
Cape Town, South Africa
More Upcoming events

Sponsored video

More videos

Industry announcements

More Industry announcements

Africa Tech Perspectives

Story

Uber's Marjorie Saint-Lot on inclusion and sustainability in Africa

Uber's Country Manager for Ghana and Cote d'Ivoire, Marjorie Saint-Lot, shares how the ride-hailing company is approaching public-private partnerships, environmentally friendly initiatives and gender inclusion in Africa.

Story

The 100 most influential African leaders in 2023

A new report from Africa Tech Festival and Connecting Africa puts a spotlight on the top 100 African leaders in the telecoms and technology sector in 2023.

Story

Deep dive into East Africa's tech startup ecosystem

New survey reveals a lack of access to investors, reliance on international VCs and global recession trends as the biggest barriers for East African tech startups to access funds.

More Africa Tech perspectives

Partner perspectives

All Partner Perspectives

Guest Perspectives

Story

Omdia View: January 2024

By Omdia Analysts

Highlights in January 2024 in the Middle East and Africa included a $200 million fintech deal between MTN and Mastercard as well as 5G network trials by Telecom Egypt – that and more in this month's Omdia View.

Story

Omdia View: September 2023

By Omdia Analysts

Highlights in September 2023 in the Middle East and Africa included more 5G spectrum licenses, vendor and operator strategies, and partnerships – that and more in this month's Omdia View.

More Guest Perspectives

Like us on Facebook

Newsletter Sign Up


Sign Up
Tag id test-002