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. 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 technological 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.
This report is about the near term economic, commercial and investor value opportunity offered by the rise of the African cloud. Building on the 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 the 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 hyper-scale 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.
This report does not pretend to have all the answers. But it does pretend to offer, at long last, the most comprehensive picture available on African cloud services markets.
The most comprehensive research to date on the data center colocation market in Sub-Saharan Africa (SSA), leveraging months of research and interviews, extensive data collection, and new analytical tools for data center analysis and geo-mapping. The report provides an unprecedented view into the dynamics underpinning the SSA data center market - from the expansion of global cloud and CDN providers to the COVID-19-boosted transformation of enterprise IT architectures. The market is evolving, from a smattering of small, substandard facilities to what is now, in effect, one of the fastest-growing colo markets in the world, and the fourth enabling infrastructure pillar of Africa’s digital transformation.
This report includes a report in PDF format, chart data in Excel, and a 20-slide executive Synopsis (PDF).
Table of Contents
EXECUTIVE SUMMARY: THE AFRICAN DATA CENTER GOLD RUSH - KEY TAKEAWAYS
Companies Mentioned
- 21st Century Technologies
- Africa Data Centres
- Akamai
- Amazon Web Services
- BCX
- CloudExchange Nigeria
- Djibouti Data Center
- Google/GCP
- Huawei
- iColo
- IS/Dimension Data
- IXAfrica
- Liquid Telecom
- MainOne/MDX-i
- Medallion Communications
- Microsoft
- MTN Business
- Ngoya Etix
- NSIA Technologies
- Orange Business
- PAIX
- Rack Africa
- Rack Centre
- Raxio
- Safaricom
- Telkom Kenya
- Teraco
- Vodacom Business
- Xneelo