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Why African business is building its cloud budgets

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A recent survey has revealed that as cloud is becoming more affordable and accessible, a bigger portion of African IT budgets is being allocated to it, allowing them to deploy complex business models at a fraction of the cost.

Cloud computing is reaching ubiquitous adoption among enterprises in Africa. Shrinking IT budgets and increasing pressure to ‘do more with less’ is making cloud computing an attractive option for businesses that want to scale their operations and digitally transform their infrastructure. As the cloud is more affordable and accessible than ever before, a bigger portion of African IT budgets is being allocated to cloud computing spend.

This was one of the key findings of Cloud Africa 2018, a research project conducted by World Wide Worx and F5 Networks, across Kenya, Nigeria and South Africa earlier this year, where we asked decision-makers at 300 medium and large organisations about their cloud computing usage, benefits, and intentions.

Budgets aim for the sky

These were the biggest take-outs from the research when it came to cloud budgets:

·       Nine out of ten (90%) companies in South Africa increased spending on cloud computing last year, and 83% will increase these budgets in 2018.

·       In Nigeria, 78% increased budgets last year, and 94% will increase their spending this year.

·       In Kenya, 74% of companies increased cloud budgets in 2017, rising to a massive 98% in 2018.

·       Not more than 2% of organisations in any of the countries surveyed decreased cloud spending last year.

·       Only 5% of South African respondents said they would decrease cloud spending this year, the majority of which were in the engineering sector. No companies in Kenya or Nigeria will decrease spending this year.

These spending trends are in line with global forecasts from the IDC, which expects spending on public cloud to increase from $67 billion in 2015 to $162 billion in 2020. Worldwide, cloud computing spending has grown at 4.5 times the rate of IT spending since 2009 and is expected to grow at more than six times the rate of IT spending from 2015 through 2020.

Hard-to-ignore benefits

The Cloud Africa 2018 research found that one of the biggest reasons for the increased spend on cloud computing is that African organisations are starting to realise the benefits and impact of cloud computing on everything from business innovation and market share, to customer experiences and brand perception.

Organisations are also starting to understand the value of cloud computing in enabling more complex business models and orchestrating better integration and collaboration across their infrastructure deployments. Higher levels of trust in cloud computing means organisations are more comfortable virtualising mission-critical business processes and applications.

This has seen many businesses in Africa – which are not as hampered by legacy infrastructure investments as their counterparts in developed markets – pursue a cloud-first strategy as they prioritise increased automation and management of cloud services without vendor lock-in.

Apps become cloud native

Another trend fuelling growth in cloud computing is the migration of applications and workloads from on-premises data centres to the cloud, as well as the development of cloud-ready and cloud-native applications. This leaves African organisations with little choice but to invest in cloud computing if they want to remain relevant and make use of new digital technologies.

Our research found that organisations in South Africa and Kenya expect 26% to 50% of applications to be cloud native by 2021, from around 1% to 25% today. In Nigeria, half of the respondents estimate that over three quarters of applications will be cloud native by 2021.

Along with the Internet of Things, artificial intelligence, virtual reality and 3D printing, cloud computing is still making the biggest and most measurable impact on businesses all over the world. With the continued roll-out and investment in supporting infrastructure – like fibre connectivity – organisations in South Africa, Kenya and Nigeria are not only unlocking access to global markets and innovation through the cloud but are also well-positioned to tap into the growing demand for outsourced cloud services from businesses that want the advantages of scalability and flexibility without the massive upfront investment.

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Welcome to world of 2099

The world of 2099 will be unrecognisable from the world of today, but it can be predicted, says one visionary. ARTHUR GOLDSTUCK met him in Singapore.

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Futuristic structures tower over the landscape. Giant, alien-looking trees light up with dazzling colours amid the hundreds of plant species that grow up their trunks. Cosmetic stores sell their wares via public touch-screens, with products delivered instantly in drawers below the screens.

This is not a vision of the future. It is a sample of Singapore today. But it is also an inkling of the world we may all experience in the future.

Singapore was the venue, last week, of the World Cities Summit, where engineers, politicians, investors and visionaries rubbed shoulders as they talked about the strategies and policies that would enhance urban living in the future.

As part of the Summit, global payment technologies leader Mastercard hosted a small media briefing by one of Singapore’s leading thinkers about the future, Dr Damian Tan, managing director of Vickers Venture Partners. The company’s slogan “We invest in the extraordinary,” offers a small clue to Tan’s perspective.

“We look as far forward as 2099 because, as a venture capital firm, we invest in the long term,” he tells a group of journalists from Africa and the Middle East. “Companies explode in growth because there is value in the future. If there is no growth, they won’t explode.”

The big question that the Smart Cities Summit and Mastercard are trying to help answer is, what will cities look like in the year 2099? Tan can’t give an exact answer, but he offers a framework that helps one approach the question.

“If you want to look at 81 years into the future, and understand the change that will come, you need to double that amount and look into the past. That takes us to 1856. The difference between then and now is the difference you can expect between now and 2099.”

  •    Arthur Goldstuck is founder of World Wide Worx and editor-in-chief of Gadget.co.za. Follow him on Twitter on @art2gee and on YouTube

Use the page links below to continue reading about Tan’s visions.

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Win a Poster Heater with Gadget and Takealot.com

This winter Gadget and Takealot.com are giving away three Poster Heaters, which look like posters but become heaters when you plug them in.

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Three Gadget readers will each win a unit, valued at R550 each. To enter, follow @GadgetZA and @Takealot on Twitter and tell us on the @GadgetZA account how many Watts the heater consumes.

What’s the big deal about these heaters? Many of us are struggling to keep the balance between soaring electricity costs and the need to keep warm this winter.

However, the recently launched Poster Heater by EasyHeat and distributed in South Africa by Takealot.com is not only one of the most cost effective electric heaters currently on the market, it is also easy to setup and use.

As the name indicates, it is a poster similar to one you would hang on a wall. But, plug it in and it turns into a 300 Watt heater. The Poster Heater isn’t designed to heat hallways or large rooms, but rather smaller ones like a bedroom or a baby’s nursery or a dressing room.

It uses radiant heating, which means that it heats up in a couple of minutes and the heat is directed at the objects or people around it, quickly taking the chill out of the air and providing a comfortable ambient temperature.

The other advantage of radiant heating is that it doesn’t dry out the air like infrared or gas heaters. Users also don’t have to worry about their children or pets getting too close to it because, even though it gets hot, it can be touched.

To enter the competition follow the steps below:

Competition entry details:

1. Follow @GadgetZA and @Takealot on Twitter. (We will ONLY be accepting entries via Twitter, so please don’t enter through the comments section of this article.)

2. Tell us on Twitter, via @GadgetZA, mentioning @Takealot in your posting, how many Watts the Poster Heater consumes.

cleardot.gif3. The competition closes on 31 July 2018.

4. Winners will be notified via Twitter on 1 August and Takealot.com will be in touch to organise delivery.

5. The competition is only open to South African residents.

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