Cloud Services: Opportunities and
Challenges for East Africa

Danson Njue
Research Analyst – Africa
Informa Telecoms & Med...
About ITM

16/10/12

Cloud
services:
Basic
concepts

www.informatandm.com

Cloud
services:
Models and
examples

Opportunit...
Informa Telecoms & Media: Your insight partner
Informa: Leading provider of insight, events and training to the global
tel...
About Informa Telecoms & Media
Evolution of Computing

Mid ‘90sInternet

Mid ‘80sClient /Server

Early ’80sPCs

Web Browsers,
Emails, Web
Hosting

2000s ...
Cloud Computing
Impact of Cloud computing
Cloud – What it entails…
• It is about consumption
• Users consume what
they wan...
Cloud computing models and examples: SaaS
Software as a Service (SaaS):- software distribution model in which applications...
IaaS/HaaS
 Renting the computing power (server, storage and network
infrastructure) for a usage-based cost
.

16/10/12

w...
PaaS
 Cloud service platform that allows users to rent virtualized servers to
run existing applications or develop and te...
Private vs Public cloud
Private cloud
 Set of hardware, networking,
storage, services and interfaces
owned and operated b...
Africa’s ICT market players are diverse
Integrators

Web
Services from…

ISPs

Telcos

Hardware

Software

Devices

Colos ...
But is Africa growing up digital?

Note: Average monthly interactions per Internet user across all African countries (mobi...
Cloud Africa: A cloud phone for the masses
Airtel Madagascar’s Cloud
Phone, using Movirtu
technology, is a way for
people ...
Cloud Africa: Cloud-based education
PC-as-a-Service
Schools in Ghana, Kenya, Tanzania
and Uganda
Laptops on a mobile
broad...
Global Trends: Informa Cloud World Forum Global Insights
Survey - June 2013
CSP cloud services launched in 2012, by type
I...
Satisfaction with public IaaS choices is patchy
Public IaaS: In your country, do you feel there is competitive choice?
Eas...
Cloud computing’s economic impact is valued
Is the use of cloud computing critical for a country’s economic competitivenes...
Across African ICT stakeholders, opinions differ
Most important cloud services for Africa?
Managed
security

76%

68%
53%
...
Africa Cloud 20:20 Index
2012 results
Cloud readiness benchmark based on
20 key indicators, including:
•

Economics (eg: G...
Africa’s telecom cloud is forming
Examples include:
• Claims Africa’s largest
telecom cloud infrastructure
• SME focus
• A...
Cloud Africa: Future digital cities
Developments include:

Gabon
Mandji Island Cybercity

Mauritius
Ebène Cyber City

Sout...
Other drivers
• Increased mobile broadband penetration :• Spread of connected objects => more and
more objects/devices rep...
Opportunities for telcos in EastAfrica
Phase 3
Phase 2
Phase 1
Storage and
computing on
demand

Unified
Communications
Clo...
Challenges

• Lack of usage-based billing platforms
• Security and privacy concerns

• Compatibility and complexity issues...
Cloud Africa: A delicate ecosystem

Submarine
cables

Fiber

Spectrum

Copper

Data
centers

IXPs

Telecom assets are crit...
… it is also about…
Rational pricing
models
Customer
segmentation
and multiple
cloud
environments

Right deployment model
...
Thank you
Questions?
© Informa UK Limited 2013. All rights reserved
The contents of this publication are protected by inte...
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Cloud Services: Opportunities & Challenges for East Africa

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Cloud Services: Opportunities and Challenges for East Africa

Danson Njue
Research Analyst – Africa
Informa Telecoms & Media
Danson.njue@informa.com
ITNewsAfrica Innovation Dinner Nairobi, 10 December 2013

Published in: Technology, Business
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Cloud Services: Opportunities & Challenges for East Africa

  1. 1. Cloud Services: Opportunities and Challenges for East Africa Danson Njue Research Analyst – Africa Informa Telecoms & Media Danson.njue@informa.com ITNewsAfrica Innovation Dinner Nairobi, 10 December 2013 www.informatandm.com © Informa UK Limited 2013. All rights reserved
  2. 2. About ITM 16/10/12 Cloud services: Basic concepts www.informatandm.com Cloud services: Models and examples Opportunities and challenges for service providers in East Africa Conclusions 2
  3. 3. Informa Telecoms & Media: Your insight partner Informa: Leading provider of insight, events and training to the global telecoms and media community June 2013 © Informa UK Ltd. All rights reserved. www.informatandm.com 3
  4. 4. About Informa Telecoms & Media
  5. 5. Evolution of Computing Mid ‘90sInternet Mid ‘80sClient /Server Early ’80sPCs Web Browsers, Emails, Web Hosting 2000s & FutureCloud Cloud computing, Social networking Distributed Computing systems Windows, DOS, GUI 16/10/12 www.informatandm.com 5
  6. 6. Cloud Computing Impact of Cloud computing Cloud – What it entails… • It is about consumption • Users consume what they want and when they want • … and only pay for what they consume New business model that brings about new economics • Shift focus from CAPEX to OPEX • Reduce cost • Improve profitability Reduced management Improved productivity • Faster deployment of systems • Improve reliability • Access-fromanywhere platforms • Access to latest software …overall impact of cloud is to transform businesses and drive revenue and productivity 16/10/12 www.informatandm.com 6
  7. 7. Cloud computing models and examples: SaaS Software as a Service (SaaS):- software distribution model in which applications are hosted by a vendor or service provider and made available to customers over a network (Internet). Consumer Multimedia content Enterprise Gaming Security Video conferencing Accounting, CRM, ERP Basic business apps Storage Web conferencing 16/10/12 www.informatandm.com Virtual desktop 7
  8. 8. IaaS/HaaS  Renting the computing power (server, storage and network infrastructure) for a usage-based cost . 16/10/12 www.informatandm.com 8
  9. 9. PaaS  Cloud service platform that allows users to rent virtualized servers to run existing applications or develop and test new applications. 16/10/12 www.informatandm.com 9
  10. 10. Private vs Public cloud Private cloud  Set of hardware, networking, storage, services and interfaces owned and operated by an organisation for use by its employees, partners or customers Public cloud  Set of hardware, networking, storage, services and interfaces owned and operated by a third party for use by other companies or users Hybrid cloud environment: Combination of data and services from a variety of models to create a unified cloud environment 16/10/12 www.informatandm.com 10
  11. 11. Africa’s ICT market players are diverse Integrators Web Services from… ISPs Telcos Hardware Software Devices Colos / hosters Governments Cloud vending machine Enterprises *by business origin 11
  12. 12. But is Africa growing up digital? Note: Average monthly interactions per Internet user across all African countries (mobile & fixed). Source: Informa Telecoms & Media Cloud models can change the velocity of digital service uptake. 12
  13. 13. Cloud Africa: A cloud phone for the masses Airtel Madagascar’s Cloud Phone, using Movirtu technology, is a way for people to share a phone, but keep their personal SIM in the cloud. 13
  14. 14. Cloud Africa: Cloud-based education PC-as-a-Service Schools in Ghana, Kenya, Tanzania and Uganda Laptops on a mobile broadband connection accessing cloud apps Ericsson and Intel are involved 14
  15. 15. Global Trends: Informa Cloud World Forum Global Insights Survey - June 2013 CSP cloud services launched in 2012, by type IT Generic business management apps 3% 3% Mobile device mgmt 3% Other 7% n = 318 IaaS 20% Vertical apps 6% SaaS marketplace 4% Professional services 6% Security 7% Departmental apps 8% Unified comms & collaboration 19% Storage, backup 14% Source: Informa Cloud World Forum Global Insights survey, June 2013 16/10/12 www.informatandm.com 15
  16. 16. Satisfaction with public IaaS choices is patchy Public IaaS: In your country, do you feel there is competitive choice? Eastern Europe & CIS Western Europe North America Most satisfied 48% 46% 6% 23% 58% 19% 14% 39% 47% Asia Pacific 25% 67% 8% Africa Latin America* 33% 56% 11% Poor Fair Excellent % of respondents by region. *small sample size. 34% 53% 13% Middle East 49% 41% 10% Least satisfied Outside North America, few believe that there’s enough choice in public IaaS. n= 318 Source: Informa Cloud World Forum Global Insights survey, June 2013 June 2013 © Informa UK Ltd. All rights reserved. www.informatandm.com 16
  17. 17. Cloud computing’s economic impact is valued Is the use of cloud computing critical for a country’s economic competitiveness? Not important Fairly important North America respondents 6% 16% Latin America respondents* Middle East respondents 45% 12% 8% 64% 23% Africa respondents 10% Eastern Europe & CIS… 6% 26% *small sample size. 28% 47% 24% 20% 26% 21% 46% 22% 56% 40% Respondents from Africa value the cloud’s economic role most highly. 32% 69% 7% 0% Critical 32% 56% Western Europe respondents 5% Asia Pacific respondents Very important 60% 12% 80% % of respondents 100% n= 318 Source: Informa Cloud World Forum Global Insights survey, June 2013 Nine out of 10 respondents link cloud computing to a country’s n= 315 Implication economic competitiveness. % of respondents Source: Informa Cloud World Forum Global Insights survey, June 2013 June 2013 © Informa UK Ltd. All rights reserved. www.informatandm.com 17
  18. 18. Across African ICT stakeholders, opinions differ Most important cloud services for Africa? Managed security 76% 68% 53% Business applications 71% 74% 68% Data storage 71% 68% African enterprises African CSPs 59% Unified communicatio… 71% 62% 50% Mobile device management African ICT suppliers 53% 49% 53% 0% 20% 40% 60% 80% Source: Informa Africa Industry Outlook survey, Nov. 2012 Africa’s ICT stakeholders must be aligned. www.informatandm.com © Informa UK Limited 2012. All rights reserved 18
  19. 19. Africa Cloud 20:20 Index 2012 results Cloud readiness benchmark based on 20 key indicators, including: • Economics (eg: GNI per capita, ICT % of GDP) • Web (eg: Internet users, Internet exchanges, telecom cloud providers) • International connectivity (eg: international Internet bandwidth growth, per capita) • Personal connectivity (eg: broadband penetration, smartphone usage) • Energy (eg: availability, sales lost due to outages) • Institutions (eg: M-government readiness, education investment, corruption) • Society (eg: literacy, urbanization) 19
  20. 20. Africa’s telecom cloud is forming Examples include: • Claims Africa’s largest telecom cloud infrastructure • SME focus • Also seeks government partnerships • Diverse SaaS offers • UC, security & storage • Cloud-based M2M • Fiber + datacenter builds • Cloud telephony • SaaS trials; MS Office365 •Teraco & Neotel datacenter tenancy; fiber build • Various SaaS; desktop as a service across subsidiaries • Virtual servers • Data center builds • Madagascar cloud telephony with Movirtu • Google social tools via SMS • NTT-owned DiData +Internet Solutions extensive cloud offers • Fiber & datacenter builds • SME, corporate, MNC • Funding for service replication in Kenya & beyond 20
  21. 21. Cloud Africa: Future digital cities Developments include: Gabon Mandji Island Cybercity Mauritius Ebène Cyber City South Africa Tshwane Smart City City of Johannesburg Tanzania Rhapta City Ghana Ghana Cyber City (Accra) Kenya Konza City Flickr/Jonathan Gill Cameroon Douala Smart City Fiber and wireless-enabled cloud services will improve trade, education, health and environment in Africa’s emerging digital cities. 21
  22. 22. Other drivers • Increased mobile broadband penetration :• Spread of connected objects => more and more objects/devices reporting their location and status to a cloud management system • Need for new revenue streams by CSPs 16/10/12 www.informatandm.com 22
  23. 23. Opportunities for telcos in EastAfrica Phase 3 Phase 2 Phase 1 Storage and computing on demand Unified Communications Cloud security services Cloud –based billing PaaS Cloud Brokers SaaS Wholesale capacity Hosting on demand Cloud deployment can be done in a phased-approach 16/10/12 www.informatandm.com 23
  24. 24. Challenges • Lack of usage-based billing platforms • Security and privacy concerns • Compatibility and complexity issues • Lack of bandwidth guarantees which may greatly affect the service 16/10/12 www.informatandm.com 24
  25. 25. Cloud Africa: A delicate ecosystem Submarine cables Fiber Spectrum Copper Data centers IXPs Telecom assets are critical – but they are not the whole story. 25
  26. 26. … it is also about… Rational pricing models Customer segmentation and multiple cloud environments Right deployment model 16/10/12 www.informatandm.com 26
  27. 27. Thank you Questions? © Informa UK Limited 2013. All rights reserved The contents of this publication are protected by international copyright laws, database rights and other intellectual property rights. The owner of these rights is Informa UK Limited, our affiliates or other third party licensors. All product and company names and logos contained within or appearing on this publication are the trade marks, service marks or trading names of their respective owners, including Informa UK Limited. This publication may not be: (a) copied or reproduced; or (b) lent, resold, hired out or otherwise circulated in any way or form without the prior permission of Informa UK Limited. Whilst reasonable efforts have been made to ensure that the information and content of this publication was correct as at the date of first publication, neither Informa UK Limited nor any person engaged or employed by Informa UK Limited accepts any liability for any errors, omissions or other inaccuracies. Readers should independently verify any facts and figures as no liability can be accepted in this regard - readers assume full responsibility and risk accordingly for their use of such information and content. Any views and/or opinions expressed in this publication by individual authors or contributors are their personal views and/or opinions and do not necessarily reflect the views and/or opinions of Informa UK Limited.

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