There’s a multitude of powerful technologies that are sweeping markets off their outdated infrastructural feet. From artificial intelligence, The Internet of Things, blockchain, cryptocurrency and cybersecurity, there is an overwhelming technological shift taking place within the public sector. However, the growing adoption of the cloud has secured its spot as the leading 2019 technological feat to watch.
While cloud services are by no means a new shiny toy to South Africans, the upcoming year will see Microsoft open two local Azure datacenter regions (Johannesburg and Cape Town) which will demonstrate the impact of a local hyperscale cloud in the local markets. Hyperscale in the local environment is an entirely new ball game for the public sector, which focuses immensely on investment into development and resources.
“A few years ago, a couple of players might have had ambitions to offer cloud services at that level, but we’ve realised what it entails. There’s no way for a local provider to compete head-to-head with a hyperscale player. What we’re seeing from local providers is them looking at ways to add value instead.” – Jon Tullett, research manager: ICT services, IDC
The first hyperscale stake claimed with Microsoft, who is comfortably capitalising on their new locally-based offering but Amazon Web Services look to claim their piece of the pie, by announcing their opening in Cape Town by 2020. The digital journey has kicked off in South Africa, and the arrival of hyperscale data centres enables the public sector to optimise their processes, applications and infrastructures.
Sources suggest that local spend on the cloud will triple from today’s levels to around R12 billion by 2022, with the return from this spend being R81 billion in top-line growth. Along with this comes the added benefit of job creation when it comes to the local landing of hyperscale cloud and digital transformation. IDC predicts this type of digital change will result in 119 000 new jobs by 2022.
While cloud computing seems to be securing its future in both the private and public sectors in South Africa, 8% of enterprises using public cloud have noted that they came under budget but that 35% reported overspending on their budgets using public cloud. Therefore having 41% of South Africans overspending budgets on public cloud, raises the concern of affordability. Cost management is an apparent concern however application mobility across public cloud seems to be the priority with 88% of users noting that it solved problems.
As 2019, brings in waves of new technological frontiers for the South African public sector, it will be interesting to watch the public cloud adoption journey and the reception it receives.
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As the world of technology continues to disrupt the private sector, it is the public sector that could stand to benefit the most from the cloud evolution and its accompanying feats. Digital transformation and modernisation are two of the leading trends across the globe and have become a point of interest in South Africa. Find out more here
