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Cloud is not a country

Medium and large businesses across South Africa, Kenya and Nigeria experience very different usage, benefits and intentions with cloud computing, according to new research by World Wide Worx and F5 Networks.

Cloud computing has taken off dramatically across Africa’s major markets, but its benefits are experienced very differently in each region – as are its budget allocations.

These were some of the key findings of Cloud Africa 2018, a research project conducted by World Wide Worx for global networking application company F5 Networks, across Kenya, Nigeria and South Africa earlier this year. Decision-makers at 300 medium and large organisations were interviewed about cloud computing usage, benefits and intentions.

“It is no longer about whether to use the cloud, but what benefits are being gained from the cloud,” says Matthew Barker, F5 Networks’ divisional sales manager for Sub-Saharan Africa. “These depend heavily on the dynamics of each market, so we were not surprised to see that businesses in each country emphasised different benefits.”

“Over the five years since World Wide Worx conducted equivalent research, use of the cloud among medium and large organisations has more than doubled, from less than 50% using it in 2013 to pervasive use in 2018”, says World Wide Worx managing director, Arthur Goldstuck.

Respondents in Nigeria and Kenya named business efficiency and scalability by far the most important benefit of cloud computing, with 80% and 75%, respectively, selecting it as an advantage, compared to 61% of South African respondents.

For South Africans, time-to-market or speed of deployment came in as the most prominent benefit, as cited by 68% of respondents. In contrast, only 48% of companies in Kenya and 28% in Nigeria named this as a key benefit.

Barker believes this is a result of the infrastructure challenges in developing information technology markets like Nigeria and Kenya, where the cloud is used to overcome the obstacles that get in the way of efficiency.

“In South Africa, with a more mature IT landscape, the focus is on the competition rather than the business itself,” he says.

This is borne out by the fact that almost a quarter (23%) of South African respondents see the cloud as a platform for international expansion, whereas this figure drops below one in five in Kenya (17%) and below one in ten in Nigeria (6%). The one area where all three countries are level – using the cloud as a platform for service innovation – is ranked exceptionally low, at around 15% across these markets.

“Internationally, it is taken for granted that the cloud is an ideal platform for both innovation and for establishing a global footprint,” says Goldstuck. “In these three markets, these are benefits that are only now beginning to be recognised, but are still a long way from being a priority. The cloud is here but its full benefits have not yet arrived.”

Key findings

Business impact:

·       82% of respondents in Nigeria have seen an impact from cloud computing on market share, with 48% seeing a high or very high impact.

·       In Kenya, 69% have seen an overall positive impact, while 48% had seen a high or very high impact on market share.

·       In South Africa, 66% had seen a positive impact but only 33% had seen a high or very high impact.

·       Innovation within the organisation saw an equally high impact in all markets, with 100% positive impact in Nigeria, 98% in Kenya and 88% in South Africa.

·       The cloud has had a similar impact on brand perception, at 100% in Nigeria, 98% in Kenya and 85% in South Africa.

·       The cloud has also had a high impact on customer experience, at 96% in Nigeria, 85% in Kenya and 81% in South Africa.

Cloud budgets:

Nine out of ten (90%) companies in South Africa said they had increased spending on cloud computing last year, and 83% said they would increase these budgets in 2018. In Nigeria, 78% said they had increased budgets last year, and 94% said they would increase their spending this year. The biggest increase comes from Kenya, however, with 74% of companies having increased cloud budgets in 2017, rising to a massive 98% in 2018.

A minimal proportion of respondents – not more than 2% in any of the countries surveyed – said they had decreased cloud spending last year. For 2018, no companies in Kenya or Nigeria said they would decrease spending, although 5% of South African respondents said they would.

Broken down by industry in South Africa, the highest proportion of increased budgeting for 2018 was reported by IT software and services companies, at 92%, followed by Mining at 85% and Retail trade at 83%. The biggest drop in cloud budgeting was expected by the Engineering sector, with 13% declining in planned spending.

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Apps:

When asked which apps were critical to organisations, 68% of Nigerian and 67% of Kenyan companies said Service apps were critical, while only 40% of South African respondents named these as key.

On the other hand, South African companies were far more likely than those in the other countries to regard human resources apps as important: 43% of South African respondents named HR apps as critical to business, compared to 19% in Kenya and 10% in Nigeria.

“It is clear that more attention is paid to internally-focused apps in South Africa than in the other markets,” says Barker. “In Nigeria and Kenya, on the other hand, customer-facing apps get the closest attention.”

A further indication of the low emphasis on internal apps is the rating of operational apps, which are seen as critical by only 15% of respondents in Kenya and 10% in Nigeria. While still low in South Africa, at 30%, it was more than double the proportion of the other two countries combined.

One area where all markets are equal, however, is in business apps, with only small variations between the three countries measured. Nigerian respondents took them slightly more seriously than the rest, with 76% seeing them as critical, while 72% of South African companies and 67% of those in Kenya agreed.

“Ultimately, the cloud is about better ways of doing business,” says Goldstuck. “That is reflected in cloud priorities and budgets across Africa.”

 

Africa News

Africa gets broadband boost

ITU and Nexpedience, a supplier of proprietary point-to-multipoint broadband infrastructure, are partnering to bring broadband access to Africa.

Under the terms of the deal, Nexpedience will provide 180 new Expedience base stations worth USD 1 million, to be deployed in six nations across the continent. The first nation to benefit from the new infrastructure is Burundi, with deployments also planned for Djibouti, Burkina Faso, Mali, Rwanda and Swaziland.

Designed to withstand extreme meteorological conditions and capable of providing up to 32 kilometres of sector coverage, Nexpedience’s base stations have been specifically designed for rural deployment.

ITU’s Wireless Broadband Network in Africa project aims to develop and implement wireless broadband connectivity and applications that will provide free or low-cost digital access for schools, hospitals, and under-served populations in rural and remote areas Africa-wide.

At the signing of the agreement in Geneva, Brahima Sanou, Director of ITU’s Telecommunication Development Bureau (BDT) emphasized the need to make developing countries part of the global broadband revolution: ‚”This partnership represents another important element in ITU’s efforts to bring broadband technology to the world even in the poorest nations. I am confident that this new partnership will accelerate broadband uptake right across the African continent, bringing the power of high-speed connectivity to users everywhere, from big cities to small villages.‚”

Kiriako Vergos, CEO of Nexpedience said: ‚”Giving access to broadband technology to underserved populations in Africa is of great importance to us. There are enormous benefits to be derived from a ‚’broadband-seed’ deployment strategy, and we decided to partner with ITU because we know that the organization has the team in place to get it done.‚”

ITU Secretary-General Dr Hamadoun Tour√© said the new agreement is a ‚”major step forward in getting Africa connected‚”. Dr Tour√© led the establishment of the Broadband Commission for Digital Development in 2010, which has the aim of putting broadband at the heart of the global development agenda.

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Nokia backs tech hubs for developing world

Nokia, AppCampus and infoDev are collaborating with mobile innovation hubs across Africa, Asia and Latin America to act as scouts for local talent.

Nokia, AppCampus and infoDev, a global innovation program of the World Bank, have announced a collaboration with mobile innovation hubs across Africa, Asia and Latin America – a move that will empower these hubs to act as scouts and agents for local talent, fast-tracking their access to AppCampus funding.

AppCampus was established in 2012 as a mobile application accelerator program managed by Aalto University in Finland. With an 18 million euro joint investment between Microsoft and Nokia, the aim is to foster mobile application development on Windows Phone and any other Nokia platform.

The announcement earmarks part of that investment fund for twenty six awards per annum for the best mobile innovation ideas to be made via the mobile innovation hub network, starting with infoDev’s mobile application labs in South Africa, Kenya, Armenia and Vietnam, as well as mobile application laboratories in Egypt (TIEC), Nigeria (CC Hub) and Mexico. The value of each award ranges from 20,000 Euro (US$ 26,000) to 70,000 Euro (US$ 90,000) depending on the complexity of the solution or business model behind the idea.

‚”By working jointly with the mobile innovation hubs, we are able to connect more effectively with local developers in emerging markets and provide support in terms of funding, especially for locally relevant innovations,‚” says Pekka Sivonen, Head of AppCampus. ‚”Although the criteria to access the AppCampus funding remains the same, with ideas needing to be original, competitive and scalable, the advantage is faster processing and the mentorship provided by these innovation hubs.‚”

The hubs and mLabs will be responsible for scouting talent and vetting ideas to be submitted to the global pool. infoDev’s mLabs foster regional entrepreneurship, employment and competitiveness by providing open spaces where developers can find training, mentoring, technical expertise and access to financing. In a short time, mLab-supported startups have brought over 120 commercial apps to market The best new entries from this network will compete against each other each quarter for the available awards.

‚”Nokia, working closely with infoDev, has supported the establishment and operation of a number of mLabs across emerging markets in support of local developers,‚” says Jussi Hinkkanen, vice president corporate relations for Nokia Middle East and Africa. ‚”The AppCampus collaboration showcases our commitment to strengthening the growing mLab network around the world and infoDev’s vision of supporting emerging market entrepreneurs in conquering local, regional and global markets‚”.

The official launch of the program took place during the mobile stream at the Global Forum on Innovation & Technology Entrepreneurship in East London, South Africa, organized by infoDev and the South African Department of Science & Technology. A key theme of the Forum is how innovation can lead to high-growth entrepreneurship which creates sustainable jobs. Valerie D’Costa, infoDev’s Program Manager says, ‚”The AppCampus initiative fits with the philosophy of infoDev of supporting innovative entrepreneurs from developing countries. We want to support those who can excel with some level of mentorship, skills training and seed financing. We provide potential job-creators better access to markets, which is what we are all about.‚”

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