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South African Managed Services in the Era of the Cloud - Which Verticals Hold the Key to Market Growth?


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An industry analyst presentation of South African managed services in the era of the cloud and which verticals will hold the key to market growth.

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South African Managed Services in the Era of the Cloud - Which Verticals Hold the Key to Market Growth?

  1. 1. South African Managed Services in the Era of the Cloud Which Verticals Hold the Key To Market Growth? 26th October 2011
  2. 2. Today’s Presenter Ishe Zingoni, Industry Analyst Frost & Sullivan• Dynamic expertise in ICT and Healthcare research and consulting• Frost & Sullivan solid experience spanning four years• Recently completed research on the managed services market in South Africa 2
  3. 3. Focus Points• Managed Services— More Relevant Now than Ever Before• Market Overview—Segmentation and Life Cycle• Key Market Drivers and Restraints• Data Centre and Cloud Hosting Trends• Demand Trends and Key Opportunities• Conclusions and Take Away 3
  4. 4. Managed Services— More Relevant Now than Ever Before• “A service you purchase from a vendor with the expertise, personnel and infrastructure necessary to deliver exactly what you need, when you need it.” Current economic conditions Potential to control costs Cloud computing topical issue, but frequently misunderstood— not a hype, but reality Critical that end-users and service providers understand the pertinent issues 4
  5. 5. Market Overview—Segmentation and Life Cycle Segment Lifecycle Analysis (South Africa), 2011 Introduction Growth Maturity Decline High Network management Web Hosting Managed Security Adoption Rate Data centre Unified communications Cloud services Low Time Total Managed Services Market = $2.09 Billion 5
  6. 6. Key Market Drivers and Restraints Need to focus Need to on core manage costs – business reduce TCO Infrastructure developments Security concerns Regulatory and compliance issues Source: Frost & Sullivan. 6
  7. 7. Data Centre and Cloud Hosting Trends Providers will move away from pure colocation to managed hosting 10% 13% 7
  8. 8. Data Centre and Cloud Hosting Trends (Contd…) Data Centre Market Trends (South Africa), 2011High Impact High Growth Impact Virtualisation and cloud computing Medium Growth Green IT and energy efficiency Impact Public sector adoption SMMEs Projected Employee mobilityImpact on the Market Data centre automation Low Growth ImpactLow Impact Low High Certainty Source: Frost & Sullivan. 8
  9. 9. Demand Trends and Key Opportunities Retail sector dominates spending in data centre services Data Centre Hosting Market: ICT and Data Centre Expenditure (South Africa), 2010 Retail sector is the biggest Retail spender in DC market GovernmentProfessional Services Oil & Gas Retail, manufacturing, financial Mining Media Manufacturing and mining ≈ 93% Healthcare Financial Retail poised to grow due to Automotive 0.0 50.0 100.0 150.0 200.0 rapid growth in FMCG $ million ICT Spend DC Spend transactions 9
  10. 10. Demand Trends and Key Opportunities (Contd…) Managed Services Market: Vertical Sector Opportunity Analysis 7 Ease of market acces 6 Retail 5 4 Mining Government Transport 3 ICT Healthcare 2 Media Financial 1 Oil and Gas 0 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% Market revenue growth rate, 2010-2016 Segment Trend Segment Trend Retail ▲ Manufacturing ▼ Financial ▲ Mining ▼ Government ▲ Transport ▼ 10
  11. 11. Conclusions and Final Word• To manage costs, enterprises are moving from CAPEX to OPEX.• Virtualization and cloud computing have added impetus to the development of data centre market.• Service providers are moving from pure colo to managed hosting and cloud offerings• The Government , retail and financial sectors to remain the key DC spenders. Government expected to increase the adoption of new applications.• SMMEs to drive the market for cloud-based offerings. 11
  12. 12. Next Steps Request a proposal for or Growth Partnership Services or Growth Consulting Services to support you and your team to accelerate the growth of your company. ( +27 21 680 3574 Join us at our annual Growth, Innovation, and Leadership 2012: A Frost & Sullivan Global Congress on Corporate Growth ( Register for Frost & Sullivan’s Growth Opportunity Newsletter and keep abreast of innovative growth opportunities ( 12
  13. 13. Your Feedback is Important to Us What would you like to see from Frost & Sullivan?Growth Forecasts?Competitive Structure?Emerging Trends?Strategic Recommendations?Other? Please inform us by “Rating” this presentation. 13
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  15. 15. Frost & Sullivan Contacts Birgitta Cederstrom Merwin Grootboom Business Unit Leader – ICT Africa Account Manager – ICT South Africa Frost & Sullivan Africa Frost & Sullivan Africa +27 21 680 3263 +27 21 680 3294 Kate Howarth Christie Cronje Director of Sales Corporate Communications Frost & Sullivan Africa Frost & Sullivan Africa +27 21 680 3261 +27 21 680 3566 15