African cloud market takes off bouyed by demand from public and private sectors, report
The African cloud has arrived. While the cloud services sector is in its early stages of development, the impact of cloud services is already far-reaching according to a new report by Research and Markets.
African banks are making investments in machine learning and artificial intelligence tools to improve the customer experience and credit risk; new “digital banks” are emerging, that are, at least in part, cloud-based.
Governments are using cloud and virtualized infrastructure to enhance public service delivery. Large retail firms are using compute capabilities and AWS databases to transform how they reach a predominantly mobile and digital customer base.
And scores of African cloud-native startups are leveraging the cloud to disrupt entire industry sectors.
The African cloud may be small, but it is already here indeed, and it is growing fast. For African markets, cloud, virtualization and the broader evolution towards serverless computing are the most disruptive technology developments since the advent of the mobile payment revolution.
Few other segments in the African ICT space are as likely to generate an incremental $2bn in top line revenue over the next five years, and at least as much in adjacent enabling ecosystem revenue.
The report highlights the near term economic, commercial and investor value opportunity offered by the rise of the African cloud.
Building on the author’s established analysis of African enterprise and digital infrastructure markets, 18 months of research and 100+ interviews and conversations, The Rise of the African Cloud explores the readiness of African markets for thriving private and public cloud services; it analyzes cloud demand and use case patterns, at segment level, from financial services to the public sector and startups; it estimates and projects cloud services market size; it details the competitive strengths of global hyperscale cloud providers and how their battle is translating in the African context; it outlines the impact of cloud services on Africa’s managed service provider ecosystem and telcos’ evolving enterprise businesses; and it breaks down the investment case within the African cloud value chain, from enterprise connectivity to data centers and SaaS.
