Cloud computing in south africa reality or fantasy

3,404 views

Published on

Published in: Technology, Business
1 Comment
0 Likes
Statistics
Notes
  • Thanks for posting the slides, I am interested if using clouds based in Africa, South Africa particular is a requirement for most clients..
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Be the first to like this

No Downloads
Views
Total views
3,404
On SlideShare
0
From Embeds
0
Number of Embeds
277
Actions
Shares
0
Downloads
175
Comments
1
Likes
0
Embeds 0
No embeds

No notes for slide
  • Investment is to be experienced across infrastructure developmentHowever, ICT development is key to future economic developments
  • Cloud computing in south africa reality or fantasy

    1. 1. Cloud computing in South Africa Reality or Fantasy? AIGS Conference 18th June 2012 Chantel Lindeman
    2. 2. Agenda Evolution of cloud computing Platform as a Service: Next Hot Cloud Uptake of cloud computing: The Reality South African Cloud Computing Market Data Centre Uptake: Virtualised Environment Where is your Business? 2
    3. 3. Generational shift of computing platform over the past 40years Technology Economic Business Centralised High upfront costs Optimised for compute & storage, for hardware and efficiency due to thin clients software high cost PCs and servers for Perpetual licence distributed Optimised for agility for OS and compute, storage, due to low cost application software etc. Large DCs, Order of magnitude Pay as you go, and commodity HW, better efficiency only for what you scale-out, devices and agility use 3
    4. 4. Three deployment models available for cloud computing• Public cloud offers the opportunity to fully exploit the cost savings inherent in cloud computing services ‒ Company relies on the service provider for security and data backup• Private cloud ensures more security as data and applications are stored internally ‒ Some companies use it initially to • Hybrid cloud enjoys ‘the best of both gain insights and confidence into worlds’, as it offers the flexibility to have Cloud computing services SaaS and the discretion on managing ‒ It still requires upfront costs and the security and data hands-on management, therefore it ‒ Costly to keep resources on a private does not fully exploit the cost- cloud while the resources on the public reduction potential cloud pose a security risk 4
    5. 5. Agenda Evolution of cloud computing Platform as a Service: Next Hot Cloud Uptake of cloud computing: The Reality South African Cloud Computing Market Data Centre Uptake: Virtualised Environment Where is your Business? 5
    6. 6. The integration between IaaS and SaaS which leads toPaaS• Public cloud IaaS is driven by cost efficiency and scalable storage• Private clouds embrace the platform = PaaS ‒ Increases efficiency and productivity of Enterprise Development Organisations• Public SaaS cloud moves towards PaaS ‒ Customer demands for isolation and customerization 6
    7. 7. The broken promise of cloud - enterprises restrict cloudusage to non critical apps (e-mail and web hosting) Robust and integrated PaaS solution can achieve the efficiency of a shared cloud environment while extending the benefits beyond hosting of isolated apps 7
    8. 8. Most PaaS services are available to users on demand,with the provider managing the hardware and software • Easily replicable images • Enterprise IT department is able to specify enables developers in performance specs minimizing coding • Leverage cloud with higher degree of • Application can be deployed confidence immediately Decrease Reduce risk development in cloud time environment• Co-ordinate alignment of applications with corporate • Manage SAP and Web requirements for security applications Increase Manage quality mission and critical control systems Safely test • Bringing together of new and • Applications can be tested at environments Integration legacy applications together same scale as production separately with minimal coding environment 8
    9. 9. Agenda Evolution of cloud computing Platform as a Service: Next Hot Cloud Uptake of cloud computing: The Reality South African Cloud Computing Market Data Centre Uptake: Virtualised Environment Where is your Business? 9
    10. 10. Global Cloud Market Takes Off: This what is what themarket is saying including Frost & Sullivan … Predicted Global Cloud Market 300 250 Revenue (Billion dollars) 200 150 100 50 Predicted 0 2008 2010 2012 2014 2016 2018 2020 Years Source: 2011 Forrester Research The global cloud market is predicted to increase fro $41 billion in 2011 to more than $241 billion by 2020 10
    11. 11. … yet, adoption remains slow due to multitude of factors• Providers have captured the Familiarity and adoption of IaaS earlier adopters Familiar with or have considered IaaS, but no plans to implement Have never• Believers are convinced of the 37% heard of IaaS 11% benefits of cloud computing ‒ However, they are concerned with cloud security Unconvinced Unfamiliar• The Unconvinced are less likely to recognise the benefits of cloud Believers computing ‒ Lack of cost reductions ‒ Private data centres are at low risk of incurring securing breach Not very familiar with IaaS• The Unfamiliar perceptions of the Familiar and planning to 29% implement IaaS within 2 years cloud were negative or undecided 13% Familiar with and currently ‒ Concerned about performance using IaaS 9% and reliability N = 301 Source: Frost & Sullivan, 2011 11
    12. 12. Agenda Evolution of cloud computing Platform as a Service: Next Hot Cloud Uptake of cloud computing: The Reality South African Cloud Computing Market Data Centre Uptake: Virtualised Environment Where is your Business? 12
    13. 13. In South Africa, the uptake of cloud computing is still in the development phase• Adoption rates in South Africa are low Cloud Services Market: Market Cycle (South Africa), 2011 ‒ Even though cloud dominates IT discussions ‒ Simplicity in implementing the technology and cost savings Market Value• IaaS is showing steady growth ‒ Understanding of the product IaaS offering ‒ Visibly see the cost benefits on P&L with reduction in SaaS infrastructure spend• SaaS is in development phase PaaS Time ‒ Niche players are building traction Development Growth Maturity Decline in the market Source: Frost & Sullivan• PaaS is new to the market but is expected to rapidly increase over next 5 years 13
    14. 14. Key driver in South Africa has been the evolution of thedata centre environment A combination of the on-premises and virtualised data centre allows companies to retain its core services on-site and move non-critical offerings off-site 14
    15. 15. Agenda Evolution of cloud computing Platform as a Service: Next Hot Cloud Uptake of cloud computing: The Reality South African Cloud Computing Market Data Centre Uptake: Virtualised Environment Where is your Business? 15
    16. 16. As traditional products mature, newer products are beingintroduced Data Centre Adoption Trends Introduction Growth Maturity Decline High WAN Web Hosting DR Managed servers LAN Hosted Enterprise Basic Hosting Adoption Rate Security Remote Hosted Backup Managed Backup Cloud storage, virtual server and desktop, remote backup and hosted exchange are promising Virtual Server service segments as traditional product lines are maturing SaaS Cloud Virtual Low storage Desktop Source: Frost & Sullivan Bubble size represents revenue/subscriber size of service area 16
    17. 17. Virtualisation solutions and cloud-based services willdrive data centre revenues in future Growth forecasts per product sector, 2010 – 2016 CAGR  Virtualisation solutions Web-Hosting 8% are a key technology Virtual server 13% trend as they offer SaaS uptake will be significant efficiencies Virtual desktop driven by hosted 30% exchange, CRM and UC and cost savings to SaaS 23% companies of all sizes Remote Backup 10%  As a result SaaS, virtual desktop and virtual server Managed Servers 8% are expected to have the LAN 2% highest growth rates toHosted Managed Back up 8% 2016  The importance of coreHosted Enterprise Security Cloud storage is a 10% small sub-product services to overall data of cloud-based Disaster Recovery services 5% centre revenues will Cloud Storage 12% decline by 2016, as these services also become Basic Hosting 5% 2010 more commoditised 2016 0 200 400 600 800 1000 Source: Frost & Sullivan analysis 17
    18. 18. Virtualisation at the heart of the cloud business model Ease of Cost avoidance Application Mobility Implementation Expand capacity at High VM can be built in a minimal cost, by availability, "always matter of hours or maximising the use on" applications even less of existing resources Saves energy costs; Frost & Sullivan and, by decreasing Easy to implement expects virtualised the overall business continuity offerings to overtake footprint, avoids or plans the uptake of defers build out of managed services the data centre Source: Frost & Sullivan analysis 18
    19. 19. Expenditure on data centres can comprise as much as 85% of total ICT spend as for banks Total spend per sector in the sample Average PC Number of potential PC’s Access for desktop management 22%  78%  34%  66% Retail and mining represent 40%  opportunities for 60% virtualised desktops  45%  55%  45% Financial services spend 55% on data centres is  high, but a large 44% proportion is in-house 56% 18%  Data Centre Spend ICT Spend Proportion of staffNote: Data is presented 82% With access to a PCfor the sample of 50 1 10 100 1000 Without accesscompanies selected inconjunction with Telkom Log of Sum of Expenditure (ZAR Million))  = 4000 PC’s 19
    20. 20. Security will always be a concern but the financial sectorconsistently are looking for ways to cut costs Key solutions for the financial sector The safety of data is critical in the financial sector. RegulationManaged Servers is a barrier to moving data off site, however. The management of servers on site can be outsourced Software as a Service (SaaS) allows the user to effectively rentSaaS the use of select software which saves on licensing fees Virtualisation has been used as a means to reduce hardwareVirtualisation requirements within the financial sector. However, most virtualisation has been restricted in house Low Medium High Barrier Barrier Barrier 20
    21. 21. Most retailers continue to keep data centres in-house, but larger retailers are considering virtualisation Key solutions for retail sector Connectivity is important in the retail sector as informationWAN must be shared and consolidated from different branches Many retailers choose to outsource data centreManaged Servers management services and these are often lucrative contracts This includes virtual desktop, virtual server and cloudVirtualisation storage, and addresses cost sensitivities in the sector Low Medium High Barrier Barrier Barrier 21
    22. 22. Due to the nature of the manufacturing sector, it is notalways conducive to build sophisticated data centres Key solutions for the manufacturing sector Manufacturing companies process large amounts of data Basic Hosting and often have sites all across the country, the servers need to be hosted in a satisfactory manner Virtualisation is a popular adoption trend within the Virtualisation manufacturing sector. Companies see the value in it and are taking steps to prepare for it Connectivity is essential for the manufacturing sector as WAN various branches are scattered around the country Low Medium High Barrier Barrier Barrier 22
    23. 23. Agenda Evolution of cloud computing Platform as a Service: Next Hot Cloud Uptake of cloud computing: The Reality South African Cloud Computing Market Data Centre Uptake: Virtualised Environment Where is your Business? 23
    24. 24. ICT is an enabler, therefore the decision must match theneed required by the company DYNAMIC INFRASTRUCTURE Separate Consolidate Aggregate Automate Liberate Enterprise Self-ManagingTest & Development Server Consolidation Capacity On Demand Computing Clouds Datacenters On & Off Premise Private Public Source: UN-Habitat, 2010, Frost & Sullivan analysis. 24
    25. 25. Where is your Business on the Journey? Hybrid Public Cloud Cloud Private Cloud Automation Virtualisation Consolidation Source: Frost & Sullivan Analysis 25
    26. 26. Youradditional informationFor Contact For Additional Information Chantel Lindeman Business Unit Leader – ICT Africa http://www.frost.com Tel: +27 21 680 3205 Mobile: +27 82 555 3851 E mail: chantel.lindeman@frost.com 26

    ×