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‘Telecom companies will drive South Africa’s cloud market’

By , IT in government editor
South Africa , 01 Aug 2014

‘Telecom companies will drive South Africa’s cloud market’

Telecom companies are expected to drive cloud adoption in South Africa, an expert said on Thursday.

Cloud has become a buzzword in corporate boardrooms across the globe as businesses take advantage of offerings such as ‘Software as a Service’ (SaaS).

However, dipstick research by World Wide Worx late last year pointed to how South Africa could hit a cloud computing usage rate of 66% in 2014, lower than Kenya at 72% and Nigeria at 80%.

But Ken Jarvis, founder and chief executive officer of project management and strategic planning firm Jika Africa, says that cloud adoption in SA could accelerate thanks to telecom firms investing in infrastructure.

Jarvis made these comments during a panel discussion at the launch of Vodacom Business' eighth data centre, a 3000m2 facility in Midrand, South Africa.

"A mid-tier IT supplier can't play in this space," said Jarvis.

"They can't set up the data centres required, they can't invest in capital, and they can't take the risk," he added.

"The telcos are there and have the investment and connectivity, and cloud doesn't work without connectivity.

"There is an advantage for being a telco. They are going to be a disruptive force," he said.

Meanwhile, the panel members on Thursday agreed that data costs have the potential to hold back cloud adoption in South Africa.

“The cost of data in this country is not like the rest of the world. It’s not a Vodacom issue it’s an industry issue,” said Jarvis.

Other potential obstacles to cloud adoption in South Africa include security concerns and a lack of knowledge.

At the 3rd annual Cloud World Forum Africa held in Johannesburg in June this year, the executive head of product division on cloud computing at Vodacom Business, Nkosi Kumalo, said 32% of South African businesses have security concerns when it comes to cloud adoption.

Moreover, he noted that 25% of South African businesses lack knowledge regarding cloud computing services.

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