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Market Research Report

South Africa Cloud Computing Market Outlook 2019-2035 : Market Size, Trends, Growth, Opportunities | COVID-19 Impact Analysis

Published Date :

2021-03-15

Report Pages :

224

Format :

PDF

Region Covered :

Africa

South Africa Cloud Computing Market Overview

Cloud Computing is generally referred to as the “the cloud” which comprises of the delivery of on demand computing resources which means everything from applications to data centers over the internet. Cloud Services gives enterprises a competitive advantage by providing the most innovative technology available. The driving factor towards this cloud computing market is that enterprise users can get applications to market quickly without worrying about the underlying infrastructure costs or maintenance. The other driving force driving the cloud market is the use of customize applications and access to cloud services from anywhere with an internet connection.

  • Elastic resources-Scale up or down quickly and easily to meet demand.
  • Metered services for what we use to pay
  • Self Service-All the IT resources we need with self -services access.

The remarkable development of cloud computing in recent years is increasingly sparking the interest of Internet and IT users seeking to derive the greatest benefit from the services and applications available on line via the web in service-on-demand mode with per-usage billing. Cloud computing offers a new model for ICTs – a model which heralds new modes of investment in, and operation of, IT resources. With cloud computing, organizations, institutions and companies no longer need to invest heavily in such resources, which are of necessity limited and require burdensome and costly internal management, having instead the option to migrate to a cloud model enabling them to purchase or lease resources on line. This model frees them from internal management costs, the IT resources being administered by the cloud computing provider. The availability of online services also frees users from the need to acquire hardware by paying instead for the resources used. This model has already been adopted by many companies, particularly small and medium-sized firms and very small firms. Cloud computing also offers IT resource (hardware and software) modularity, with availability in terms of volume and time according to the customer's requirements and at its request.

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 centers go live over the next two years. Looking further into the future, the cloud service market growing at a CAGR of 28% over the next five years to R23.6 billion in 2023. IT spending in South Africa will total R303.5-billion in 2019, a 3.9% increase from 2018. Spending on devices in South Africa is projected to total R46 billion in 2019, up 3% from 2018

South Africa Cloud Computing Market Segmentation

By Use Case

  • Service Lines
  • Web Development, Mobile Development, Custom Software Development
  • Client Focus
  • Enterprise, Mid-Market, small business
  • Industry Focus
  • Financial Services, Consumer Products and Services, Real estate.
  • Mobile Platforms
  • Mobile Focus
  • Programming and Scripting
  • Frameworks and CMS
  • Application Platforms

By Organizational Size

  • Large Enterprises
  • Medium and Small Scale Enterprises

By Products

  • Compute
  • Network
  • Storage,
  • Management
  • Security
  • Databases
  • Analytics
  • Artificial Intelligence
  • Block Chain
  • IOT
  • Mobile
  • Developer Tools
  • Migration
  • Integration

By Industry Verticals

  • Ad Tech
  • Government
  • Healthcare
  • Telecommunications
  • Healthcare
  • Transportation & Logistics
  • BFSI
  • Manufacturing
  • Energy and Utilities
  • Retail
  • Media and Entertainment
  • Public Sector
  • Gaming

By Organization Type

  • Startups
  • Private

By Platforms

  • IAAS,
  • PAAS,
  • SAAS
  • Private Cloud
  • Hybrid Cloud
  • Cloud Security
  • Public Cloud

By Regions

  • Cape Town {(Market Size (USD Billion), Market Share (%)}
  • Durban {(Market Size (USD Billion), Market Share (%)}
  • Johannesburg {(Market Size (USD Billion), Market Share (%)}

South Africa Cloud Computing Market Dynamics

Growth Drivers and Challenges

  • Cloud computing is scalable, on-demand provision of remote computing and data storage.This growth stems from the cloud’s advantages of scale and scope, which lower costs, improve speed, increase flexibility, and reduce risks in IT deployment. The cloud also enables an ecosystem of innovative ICT applications in low- and middle-income economies, which can assist them in achieving their economic and social goals. It is migration towards the cloud environment.
  • Cloud computing represents significant change in the way that IT services are provisioned to users within organisations. Traditionally services are provisioned internally and this followed a generic approach of capital expenditure, installation, configuration, and rollout. Cloud computing challenges this traditional provisioning model through a number of key differentiators. South Africa as a developing country has limitations with regards to the infrastructural environment, particularly around lack of bandwidth, quality of service and affordability. The results found that the greatest concerns about cloud computing were security, reliability of the data lines to the cloud service provider as well as the additional data lines and bandwidth required. Research further indicate that the expectations from cloud computing were scalability, improved uptime and speed of deployment. In addition, the study found that despite cloud computing being a top emerging IT trend of today.
  • IT modernisation, cost optimisation, and digital transformation are factors which motivate all companies to implement cloud computing. Despite the constraints (lack of infrastructure, power-supply problems, etc.) that are hampering ICT development in some parts of South Africa, the African cloud computing market appears, paradoxically, to be “benefiting” from those constraints, and the continent is experiencing the opening up of considerable opportunities where this new IT model is concerned.
  • 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 are coming soon, believes this will have a significant impact on the adoption of cloud services locally.

Restraints

  • Lack of IT and connectivity infrastructure
  • Absence of cloud computing policy for the public sector
  • Threat associated with data security and privacy
  • Shortage of skilled professionals
  • Inconsistencies in the approach to implement cloud computing solutions

Geographical Market (Dominate Market/Target Opportunities)

The fact is that the major players in the international Internet and server industry spheres have already positioned themselves in the African market. In South Africa, new companies have opened two data centres, in Cape Town and Johannesburg. These represent an attractive opportunity for international companies, which see in them a very low-cost alternative to European centres.

As for the other economic operators, we find that the banking and education sectors are the first to have adopted this technology in Africa. In Tanzania and Rwanda, concrete data centre projects are already operational or in the process of being set up. In Benin and Burundi, strategies are emerging for the introduction of cloud computing. The aforementioned initiatives, while of interest, take the form of broader actions or programs that are not specific to the cloud computing (regulatory frameworks for electronic transactions, outsourcing of business processes, technology parks). At the regulatory level, it is to be noted that the majority of countries surveyed have no legislation on data protection or agreements with other countries in that sphere.

Mergers and Acquisitions

Berkshire Partners acquires a majority stake in Teraco

Boston-based private equity firm Berkshire Partners recently announced the acquisition of a majority stake in Teraco, South Africa’s largest data center provider. Teraco, currently ranked 5th on Cloudscene’s EMEA Leaderboard, said that it would use the additional investment to double its existing data center capacity, and plans to increase total power capacity to 60MW from its current 30MW.Teraco currently has facilities in the South African cities of Johannesburg, Cape Town, and Durban. The company plans to build a new data center in Gauteng, as well as add to its existing Cape Town facility.

layers Specific Data (Product Launch, International and Domestic Players Dominance, Sales Distribution)

Mobile cloud computing uses cloud computing to deliver applications to mobile devices. These mobile apps can be deployed remotely using Speed and flexibility and development tools. On the cloMobile cloud applications can be built or revised quickly using cloud services. They can be delivered to many different devices with different operating systems. Computing tasks and data storage. Thus, users can access applications that could not otherwise be supported.

Key Features

  • Facilities the quick development , shared resources of mobile apps.
  • Applications use fewer device resources because they are cloud supported
  • Supports a variety of development approaches and devices
  • Mobile devices are connected to services delivered on an architecture
  • Improves reliability with information backed up and stored in the cloud.
  • Companies are considering mobile cloud computing over the traditional cloud computing because of the various factors:
  • It helps in saving time and energy, protecting confidential data is a concern at entry level for users , devices and in regards to integration into other systems. Successful projects are 35 percent more likely than others to use cloud based platforms and 31 percent more likely to use mobile application development platforms to develop their mobile apps.

Announcements regarding the general availability of Microsoft Azure from the new cloud regions in Cape Town and Johannesburg, South Africa. Nedbank, Peace Parks Foundation, and eThekwini water are just a few of the organizations in Africa leveraging Microsoft cloud services today and will benefit from the increased computing resources and connectivity from our new cloud regions.The launch of these regions marks a major milestone for Microsoft as we open our first enterprise-grade datacenters in Africa, becoming the first global provider to deliver cloud services from datacenters on the continent. The new regions provide the latest example of our ongoing investment to help enable digital transformation and advance technologies such as AI, cloud, and edge computing across Africa. By delivering the comprehensive Microsoft Cloud — comprising Azure, Office 365, and Dynamics 365  from datacenters in a given geography, we offer scalable, available, and resilient cloud services to companies and organizations while meeting data residency, security, and compliance needs.

Microsoft has long been working to support organizations, local start ups, and NGOs in Africa that have the potential to solve some of the biggest problems facing humanity, such as the scarcity of water and food as well as economic and environmental sustainability.

In 2013, launched Microsoft 4Afrika investing in start-ups, partners, small-to-medium enterprises, governments, and youth on the African continent. The program is focused on delivering affordable access to the Internet, developing skilled workforces, and investing in local technology solutions. Africa has the potential to help lead the technology revolution; therefore, Microsoft is empowering organizations and people to drive economic development, inclusive growth, and digital transformation. 4Afrika is Microsoft’s business and market development engine on the continent, which is preparing the market to embrace cloud technology.

We have also extended Farmbeats, an end-to-end approach to help farmers benefit from technology innovation at the edge, to Nairobi, Kenya. FarmBeats strives to enable data-driven farming as we believe that data, coupled with the farmer’s knowledge and intuition about his or her farm, can help increase farm productivity and reduce costs. The new effort in Nairobi will be focused on addressing the specific challenges of farming in Africa with the intent of expanding to other African countries.

Accelerating digital transformation in South Africa

Nedbank a leading African bank that services a diverse client base in South Africa and the rest of Africa, is pursuing a transformation strategy with the Azure cloud platform to enable its digital aspirations. Microsoft has had a long relationship with Nedbank which has culminated in enabling its migration to the cloud to help increase its competitiveness, agility, and customer focus. Azure also provides compliance technologies that assist Nedbank to increase data privacy and security which are primary concerns of its customers, regulators, and investors. Nedbank has adopted a hybrid and multi-vendor cloud strategy in which Microsoft is an integral partner.

The Peacepark Foundation, in collaboration with Cloud logic, uses Azure to rapidly deploy infrastructure and solutions in far-flung protected spaces as well as to compute a considerable volume of data around at-risk species and wildlife in multiple conservation areas spanning thousands of kilometers. In efforts to sustain the delicate ecosystem and keystone species, such as the black and white rhinoceros, Peace Parks Foundation processes up to tens of thousands of images captured monthly on wildlife cameras in remote areas to monitor possible poaching activity. In the future, Peace Parks will leverage the new cloud infrastructure for radio over Internet protocol, a high-tech solution to a low-tech problem, to improve radio communication over remote and isolated areas.

eThekwini water is a unit of the eThekwini Municipality in Durban, South Africa responsible for the provision of water and sanitation services critical for sustaining life for 3.5 million residents in a 2,000+ square kilometer service area. In partnership with Cloudlogic eThekwini water is using Azure for critical application monitoring as well as site failover and disaster recovery initiatives. It’ll benefit from locally delivered cloud services to improve performance of real-time reporting and monitoring of water infrastructure 24 hours a day, seven days a week

Azure is the first of Microsoft’s intelligent cloud services to be delivered from the new datacenters in South Africa. Office 365, Microsoft’s cloud-based productivity solution, is anticipated to be available by the third quarter of calendar year 2019, and Dynamics 365, the next generation of intelligent business applications, is anticipated for the fourth quarter.

Using the Teraco data centre based in Cape Town, the Internet access provider Webnow has launched a virtual server targeting small enterprises, for the price of 189 Rands widthbands.The fact is that the major players in the international Internet and server industry spheres have already positioned themselves in the African market. In South Africa, new companies have opened two data centres, in Cape Town and Johannesburg. These represent an attractive opportunity for international companies, which see in them a very low-cost alternative to European centres.African companies such as Kenya Data Networks or Teraco (which operates data centres in Cape Town, Durban and Johannesburg) are contributing to the construction of new economic models, based on the use of entry-level products via the net.Microsoft general manager for west, east and central Africa, the company has no plans to build any data centres in Africa, there being a “certain amount of maturing” that needs to happen in the African business community before it embraces web-based services. In the meantime, Microsoft is making its expertise and programs available to access providers, such as MTN, which are themselves offering a range of new services to companies. “Today in Ghana, Cameroon and South Africa, as part of their data subscription business MTN can now sell to that business not only that subscription, but, for an additional fee, provide that business with an e-mail service and a collaboration service all based on Microsoft technology,”. $1.5 Billion exports and $13.4 billion imports of cloud Computing in South Africa

Key Market Players

The most prominent players in the South African cloud computing market are :-

  • Sov technology
  • Winjit Technologies
  • BBD Software Development
  • Synthesis Software Technologies
  • Altron Karabina
  • Blue Bridge One
  • IT Lab
  • Egis Software
  • Royal Cyber
  • Lan Dynamix
  • Span Digital
  • Musato Technologies
  • Infomasters Software Solutions
  • Blue Turtle  Technologies,etc

Major international players operating in South Africa cloud computing market are SAP Africa, IBM South Africa, Microsoft South Africa, HP South Africa, Dimension Data South Africa, T-Systems, Accenture, Software AG, MTN Group, and Brighthouse VPS. Cloud service provides are focused towards offering advanced solutions that can be integrated with existing business application solutions. Further, managed hosting service providers are emphasizing more on entering into partnership with major international brands and to strengthen their cloud portfolio and customer reach.

We conducted interviews with the Consumers (B2C Vs B2B), Cloud Computing Brands, End User Industry Verticals, Contractual Suppliers, Product Managers, Consultants, Decision Makers, VPs, Executives, Sales Managers, Regional Sales Head, C-level Executives, etc.

Key Benefits: South Africa Cloud Computing Market Outlook, 2019-2035 (Edition 2021)

•    The report includes South Africa Cloud Computing Market Manufacturers, Contract Manufacturers & Brands Outlook (Market Competition & Global Presence), Business Strategy & Financial Analysis of Major Players. Further, the study also covers Industry Insights (Future Trends & Forecast Data), Trade Data (Exports and Imports), By South Africa Cloud Computing Market Type (Manufacturing & End User Industry Outlook), End User Industry Analysis (B2B Vs B2C), Competitive Intelligence, Opportunity Analysis
•    Market Data : Market Size (USD Billion), Market Share (%), CAGR (%), Y-O-Y Growth Rate (%) of South Africa Cloud Computing Market Industry and further it bifurcated into Countries, 2019-2035
•    Sales Data of South Africa Cloud Computing Market : By Each Packaging Type, By End Users, By Manufacturers Type, By Application, By Countries, (By Volume & Value), 2019-2035
•    Manufacturing Outlook of South Africa Cloud Computing Market : Manufacturers Outlook, Revenue & Market Share of Manufacturers, Manufacturing Capacity, Operational Margins, Contract Manufacturers & OBMs Outlook, etc., 2019-2035
•    Brands Outlook : Revenue Share (%) of Manufacturers By Packaging Type, Market Positioning, Ranking Analysis, Product Portfolio, Competitiveness, Regional Presence, No. of Products, Investments, Partnerships & Collaborations, Mergers & Acquisitions, etc., 2019-2035
•    South Africa Cloud Computing Market End User Outlook : End User Preferences of Packaging & Brands, End User Spending, Average Spending Power, Adoption Rate (%), Penetration Rate (%), Green Initiatives, Govt. Regulations, etc., 2019-2035
•    Market Dynamics : Growth Drivers, Challenges, Opportunities, Trends, SWOT Analysis, Porter's Five Force Model, PESTLE Analysis, etc., 2019-2035
•    Trade Data of South Africa Cloud Computing Market (Export & Import) : By Each Segment, By Major Destination Countries (By Value & Volume), 2019-2035
•    Supply & Demand Analysis : By South Africa Cloud Computing Market Type, End Use Verticals, By Countries, 2019-2035
•    Target & Potential Markets : By Major Countries & Industries
•    Detailed Outlook : South Africa Cloud Computing Market Industry Analysis : (Manufacturers, Raw Material Outlook, New Products, Ongoing Researches, End User Analysis, Manufacturing Models, Demand Analysis for Each End User Industry, Govt. Norms, Market Dynamics etc.)

COVID-19 impact on "South Africa Cloud Computing Market"

The report analyses and includes complete detailed chapter of 50-70 pages about the short term & long terms impact of COVID-19 outbreak on each segment of "South Africa Cloud Computing Market" along with government measures to support the sector. It also showcases the current market landscape during COVID, impact of the virus on leading companies, expected demand schedule and supply chain in the industry and other various major factors. This will help you identify those companies that may benefit from this pandemic as well as those that will lose out.

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Key questions answered in this research report

  • What is the total market size by 2035 and what would be the expected growth rate of sales?
  • What are the total sales in 2018-19 and what would be the expected demand over the forecast period?
  • What are the recent developments and business strategy of companies?
  • What are the market opportunities for the existing and entry level players?
  • What are the key market trends?
  • What are the factors which are driving this market?
  • What are the major barriers to market growth?
  • Who are the key vendors in this market space?

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  • South Africa Cloud Computing Market Facilitate decision-making based on strong historic and forecast data for
  • Develop strategies based on the latest regulatory framework
  • Position yourself to gain the maximum advantage of the South Africa Cloud Computing Market’s growth potential
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  • Respond to your competitor’s business structure, strategy and prospects’s growth potential



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