[South Africa] Public cloud services will enable organisations to accelerate digital transformation
The increased utilisation of public cloud services and the additional investments into private and hybrid cloud solutions will enable organisations in South Africa to focus on innovation and accelerate the pace of digital business transformation. This is according to the IDC report, Economic Impact of IT & Microsoft in South Africa. In turn, the report says this will help businesses generate close to R81 billion in net revenue over the next four years.
The Intelligent Cloud is the enabler of true digital transformation, enabling businesses to transform their existing business models into digital business models, thereby improving operational efficiency, empowering employees, enabling richer customer engagements, and transforming and innovative products and services.
According to Ashleigh Fenwick, Head of Communications at Microsoft, the IT the IT sector in South Africa is expected to grow at a five-year compounded annual growth rate (CAGR) of 4.25% to reach R175 billion by 2022.
‘’This growth is fuelled by public cloud growth – the cloud market is expected to reach R11.53 billion by 2022, representing a CAGR of a whopping 21.9%. This could potentially lead to 119k nett new job opportunities,” he said.
Fenwick was speaking when he announced that Microsoft had pushed the launch of its two data centres in South Africa to 2019. Located in Johannesburg and Cape Town, said it is targeting cloud services growth on the continent. These data centres are expected to deliver the Microsoft Cloud, including Microsoft Azure, Office 365, and Dynamics 365 to Africa. They had initially been set to be launched in 2018.
While the software market is expected to grow at a compound annual growth rate of 2.9% over the next 5 years, the cloud market in South Africa is expected to grow at 21.9% to reach R11.53 billion. The increased adoption of cloud services in the country will create 112,000 net new job opportunities in the economy by 2022, driven by the benefits of cloud computing, such as lower capex, efficiency, scale, and flexibility.
Cloud computing has taken off dramatically across Africa’s major markets. Its benefits are however being experienced very differently in each region – as are its budget allocations.