The arrival of hyperscale cloud data centres in South Africa, the commercial maturing of new interactions such as Augmented Reality, and the rise of the intelligent edge paint a promising picture for 2018, writes DOUG WOOLLEY, General Manager of Dell EMC.
But these are not just local events – globally the next year holds a lot of promise. As highlighted in the Next Era of Human-Machine Partnership report from Dell Technologies and the Institute for the Future (IFTF), some profound new realities are just around the corner.
Mega clouds are a very notable prediction from this report. ‘Mega clouds’ are so-called because they will span multiple cloud vendors. Companies and individuals will start expecting to shift workloads, data and other assets between those vendors, avoiding lock-ins and ‘cloud silos’ that are emerging as the migration away from client-server concepts continue.
In South Africa this will be preempted by the arrival of Azure hyperscale datacentres, a clear reflection of the country’s growing demand for cloud’s efficiency and innovation delivery. But the impact will be felt beyond our borders, reaching out to the rest of the SADC region. Doug Woolley, GM of Dell EMC South Africa, is particularly excited about opportunities in sub-Saharan Africa:
“It’s one of our fastest growing regions. We will look at getting more potential investment for the SADC and Indian Island territories. We see a lot of upside, we see a lot of partners engaging with us and also a lot of customers having conversations. And we’ve had good, significant wins in the territory in the past six months. I am very happy with the rate and potential there.”
With this growth of cloud will come the distinct rise of the intelligent edge. This speaks of more decision-making capacity being shifted to devices located away from the core of cloud systems. The sensor on a security system or environmental monitor will not have to wait for feedback from the central hub in order to act, thus drastically reducing response times for all types of situations. Called the IQ of Things, this revolution is already evident in our cars – where sensors feed information to local systems inside the vehicles.
Such systems will start hosting certain levels of artificial intelligence, a force that continues to reshape the world. In 2018, Dell EMC predicts this trend expanding into ‘thinking tasks’ at businesses. Using data, AIs will help companies significantly reduce time spent scoping, debating, scenario planning and testing every new innovation.
AI will also play a growing role in recruiting the right people and skills, which the report refers to as ‘bias checking’. This is the use of AI to get around human shortcomings. Not dissimilar to ‘blind’ auditions where musicians perform behind a screen, AI will be utilised to help inform hiring and promotion decisions without the unseen prejudice of humans.
Numerous companies are already using such practices. But they are the outliers. In 2018, we will start regarding them as the pioneers. Those include companies that will be using Augmented and Virtual Reality for remote interviews of candidates and engagements with customers. As digital entertainment such as e-sports grow in popularity, that tech-savvy audience will also drive the adoption of AR and VR in 2018.
Dell Technologies chairman and CEO, Michael Dell, had sight of this future when he launched the most ambitious technology merger in history between Dell and EMC, a future he has often articulated: “I think it’s nothing short of the beginning of a fourth industrial revolution, and the plot for us is being the essential infrastructure company.”
Today Dell EMC is a true end-to-end provider, from the vital infrastructure in the back to the point devices that people use to realise their ambitions. Even in South Africa, the shift has been near seamless. Less than 5 percent of employees had left the merged companies, shares have grown in key market segments, and a new partner programme is making waves with unmatched returns for everyone involved. These are things Woolley recounts with pride:
“It is always a challenge to bring two cultures together, even if they share similar outlooks. Over the past year, at a local level, we’ve managed to integrate the sales and product teams very well. On a technical level there has also been a lot work to integrate the guys under one infrastructure and leadership. From that people perspective I am very happy.”
Dell EMC believes 2018 will be a significant year in humanity’s progress and it is ready to be an active participant in that evolution, said Woolley:
“We are definitely riding that wave and having those conversations. Without sounding arrogant, I think we have positioned ourselves as the cloud infrastructure player. There is still, as an industry, work to do on how do we move effectively to the next level of cloud, and that is more around the application conversations. Dell EMC is very well positioned to have a meaningful conversation with customers on how do we cloudify their apps and get it on modern infrastructure.”
Online retail gets real
After decades of experience in selling online, retailers still seek out the secret of reaching the digital consumer, writes ARTHUR GOLDSTUCK.
It’s been 23 years since the first pizza and the first bunch of flowers was sold online. One would think, after all this time, that retailers would know exactly what works, and exactly how the digital consumer thinks.
Yet, in shopping-mad South Africa, only 4% of adults regularly shop online. One could blame high data costs, low levels of tech-savviness, or lack of trust. However, that doesn’t explain why a population where more than a quarter of people have a debit or credit card and almost 40% of people use the Internet is staying away.
The new Online Retail in South Africa 2019 study, conducted by World Wide Worx with the support of Visa and Platinum Seed, reveals that growth is in fact healthy, but is still coming off a low base. This year, the total sale of retail products online is expected to pass the R14-billion mark, making up 1.4% of total retail.
This figure represents 25% growth over 2017, and comes after the same rate of growth was seen in 2017. At this rate, it is clear that online retail is going mainstream, driven by aggressive marketing, and new shopping channels like mobile shopping.
But it is equally clear that not all retailers are getting it right. According to the study, the unwillingness of business to reinvest revenue in developing their online presence is one of the main barriers to long-term success. Only one in five companies surveyed invested more than 20% of their online turnover back into their online store. Over half invested less than 10% back.
On the surface, the industry looks healthy, as a surprisingly high 71% of online retailers surveyed say they are profitable. But this brings to mind the early days of Amazon.com, in 1996, when founder Jeff Bezos was asked when it would become profitable.
He declared that it would not be profitable for at least another five years. And if it did, he said, it would be in big trouble. He meant that it was so important for long-term sustainability that Amazon reinvest all its revenues in customer systems, that it could not afford to look for short-term profits.
According to the South African study, the single most critical factor in the success of online retail activities is customer service. A vast majority, 98% of respondents, regarded it as important. This positions customer service as the very heart of online retail. For Amazon, investment back into systems that would streamline customer service became the key to the world’s digital wallets.
In South Africa online still make up a small proportion of overall retail, but for the first time we see the promise of a broader range of businesses in terms of category, size, turnover and employee numbers. This is a sign that our local market is beginning to mature.
Clothing and apparel is the fastest growing sector, but is also the sector with the highest turnover of businesses. It illustrates the dangers of a low barrier to entry: the survival rate of online stores in this sector is probably directly opposite to the ease of setting up an online apparel store.
A fast-growing category that was fairly low on the agenda in the past, alcohol, tobacco and vaping, has benefited from the increased online supply of vapes, juices and accessories. It also suggests that smoking bans, and the change in the legal status of marijuana during the survey, may have boosted demand.
In the coming weeks, we can expect online retail to fall under the spotlight as never before. Black Friday, a shopping tradition imported “wholesale” from the United States, is expected to become the biggest online shopping day of the year in South Africa, as it is in the USA.
Initially, it was just a gimmick in South Africa, attempting to cash in on what was a purely American tradition of insane sales on the Friday after Thanksgiving Day, which occurs on the third Thursday of November every year. It is followed by Cyber Monday, making the entire weekend one of major promotions and great bargains.
It has grown every year in South Africa since its first introduction about six years ago, and last year it broke into the mainstream, with numerous high profile retailers embracing it, and many consumers experiencing it for the first time.
It is now positioned as the prime bargain day of the year for consumers, and many wait in anticipation for it, as they do in the USA. Along with Cyber Monday, it provides an excuse for retailers to go all out in their marketing, and for consumers to storm the display shelves or web pages. South African shoppers, clearly, are easily enticed by bargains.
Word of mouth around Black Friday has also grown massively in the past two years, driven by both media and shoppers who have found ridiculous bargains. As news spreads that the most ridiculous of the bargains are to be had online, even those who were reticent of digital shopping will be tempted to convert.
The Online Retail in SA 2019 report has shown over the years that, as people become more experienced in using the Internet, their propensity to shop online increases. This is part of the World Wide Worx model known as the Digital Participation Curve. The key missing factor in the Curve is that most retailers do not know how to convert that propensity into actual online shopping behaviour. Black Friday will be one of the keys to conversion.
Carry on reading to find out about the online retailers of the year.
Reliable satellite Internet?
MzansiSat, a satellite-Internet business, aims to beam Internet connections to places in South Africa which don’t have access to cabled and mobile network infrastructure, writes BRYAN TURNER.
Stellenbosch-based MzansiSat promises to provide cheap wholesale Internet to Internet Service Providers for as little as R25 per Gigabyte. Providers who offer more expensive Internet services could benefit greatly from partnering with MzansiSat, says the company.
“Using MzansiSat, we hope that we can carry over cost-savings benefits to the consumer,” says Victor Stephanopoli, MzansiSat chief operating officer.
The company, which has been spun off from StellSat, has been looking to increase its investor portfolio while it waits for spectrum approval. The additional investment will allow MzansiSat’s satellite to operate in more regions across Africa.
The MzansiSat satellite is being built by Thales Alenia Space, a French company which is also acting as technical partner to MzansiSat. In addition to building the satellite, Thales Alenia Space will also be assisting MzansiSat in coordinating the launch. The company intends to launch the satellite into the 56°E orbital slot in a geostationary orbit, which enables communication almost anywhere in Africa. The launch is expected to happen in 2022.
The satellite will have 76 transponders, 48 of which will be Ku-band and 28 C-band. Ku-band is all about high-speed performance, while C-band deals with weather-resistance. The design intention is for customers of MzansiSat to choose between very cheap, reliable data and very fast, power-efficient data.
C-band is an older technology, which makes bandwidth cheaper and almost never affected by rain but requires bigger dishes and slower bandwidth compared to Ku-band connections. On the other hand, Ku-band is faster, experiences less microwave interference, and requires less power to run – but is less reliable with bad weather conditions.
MzansiSat’s potential military applications are significant, due to the nature of the military being mobile and possibly in remote areas without connectivity. Connectivity everywhere would be potentially be life-saving.
Consumers in remote areas will benefit, even though satellite is higher in latency than fibre and LTE connections. While this level of latency is high (a fifth of a second in theory), satellite connections are still adequate for browsing the Internet and watching online content.
The Internet of Things (IoT) may see the benefits of satellite Internet before consumers do. The applications of IoT in agriculture are vast, from hydration sensors to soil nutrient testers, and can be realised with an Internet connection which is available in a remote area.
Stephanopoli says that e-learning in remote areas can also benefit from MzansiSat’s presence, as many school resources are becoming readily available online.
“Through our network, the learning experience can be beamed into classrooms across the country to substitute or complement local resources within the South African schooling system.”