Cloud Services: Opportunities & Challenges for East Africa

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


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.

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


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


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


Virtual desktop

7

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

16/10/12


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


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


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


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
June 2013

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

Nine out of 10 respondents link cloud computing to a country’s
n= 315
Implication
economic competitiveness.
% of respondents
June 2013

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.

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


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


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


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


26

Thank you
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