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
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
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
About Informa Telecoms & Media
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
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
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
IaaS/HaaS
 Renting the computing power (server, storage and network
infrastructure) for a usage-based cost
.

16/10/12

www.informatandm.com

8
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
… it is also about…
Rational pricing
models
Customer
segmentation
and multiple
cloud
environments

Right deployment model

16/10/12

www.informatandm.com

26
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.

Cloud Services: Opportunities & Challenges for East Africa

  • 1.
    Cloud Services: Opportunitiesand 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.
  • 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.
  • 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.
    Cloud Computing Impact ofCloud 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.
    Cloud computing modelsand 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.
    IaaS/HaaS  Renting thecomputing power (server, storage and network infrastructure) for a usage-based cost . 16/10/12 www.informatandm.com 8
  • 9.
    PaaS  Cloud serviceplatform 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.
    Private vs Publiccloud 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.
    Africa’s ICT marketplayers are diverse Integrators Web Services from… ISPs Telcos Hardware Software Devices Colos / hosters Governments Cloud vending machine Enterprises *by business origin 11
  • 12.
    But is Africagrowing 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.
    Cloud Africa: Acloud 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.
    Cloud Africa: Cloud-basededucation 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.
    Global Trends: InformaCloud 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.
    Satisfaction with publicIaaS 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.
    Cloud computing’s economicimpact 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.
    Across African ICTstakeholders, 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.
    Africa Cloud 20:20Index 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.
    Africa’s telecom cloudis 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.
    Cloud Africa: Futuredigital 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.
    Other drivers • Increasedmobile 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.
    Opportunities for telcosin 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.
    Challenges • Lack ofusage-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.
    Cloud Africa: Adelicate ecosystem Submarine cables Fiber Spectrum Copper Data centers IXPs Telecom assets are critical – but they are not the whole story. 25
  • 26.
    … it isalso about… Rational pricing models Customer segmentation and multiple cloud environments Right deployment model 16/10/12 www.informatandm.com 26
  • 27.
    Thank you Questions? © InformaUK 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.