Intelligent CIO Africa Issue 60 - Page 46


Primed for cloud technologies adoption

Cloud-based solutions refer to on-demand services , computer networks , storage , applications or resources accessed via the Internet and through another provider ’ s shared cloud computing infrastructure . The benefits of cloud solutions to end users and businesses include increased capacity , scalability , functionality and reduced maintenance and cost for computer infrastructure or in-house staff . Additionally , cloud-based solutions can enable companies to focus on revenue driving initiatives rather than time-consuming , non-core business tasks . Industry pundits look at cloud computer pricing models , sites and applications , cloud providers , storage and how enterprises are adopting cloud computing on the African continent .

Despite the African continent accounting for only 1 % of the global public cloud market and with a cloud penetration rate of only 15 %, the market has doubled in the past three years and is expected to grow at a compound annual growth rate ( CAGR ) of 17 to 20 %.

In the latest results , SAP ’ s cloud revenue for the EMEA region increased by 29 %, and with Africa ’ s relative lack of legacy on-premise systems , the continent is primed for greater adoption of cloud technologies .
Cameron Beveridge , Regional Director for Southern Africa at SAP , said : “ We are seeing the demand for cloud solutions from customers , especially in the mid-market space . Due to the impact of the pandemic and the continued disruption across most industries , cloud tools that help organisations eliminate uncertainty and enable new ways of engagement with customers , partners and employees will likely drive adoption trends .”
Beveridge said one of the most vibrant segments for cloud adoption is SMEs . “ The sector is vital to Africa ’ s fortunes and in Kenya , for example , SMEs accounted for 98 % of all businesses and created 30 % of all jobs in 2017 ,” he noted . “ For all organisations , the past two years have forced business leaders to re-evaluate their strategies and reframe the role of technology in their business models . The pandemic has been a catalyst for accelerated Digital Transformation and cloud services adoption .”
Beveridge explained that in a global survey conducted by McKinsey , executives stated that the pandemic had accelerated the digitisation of their supply chain , customer interactions and internal operations by three to four years . “ One of the most obvious changes has been the shift to remote work in the early stages of the pandemic , and the subsequent formalisation of hybrid work models among a large percentage of African enterprises . This shift in the workplace has created a
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