The high level of investment made by global cloud hyperscalers is supporting the growth of SA’s cloud market.
The firm notes the growth is being driven predominantly by many businesses and government institutions implementing digital transformation to become cloud-first organisations to improve their business priorities and outcomes. Large investments made by global cloud hyperscalers in SA also contribute to the market’s growth.
“There has also been an increase in investments from hyperscalers like Alibaba, AWS , Huawei and Microsoft Azure. As a result of these investments, the demand for wholesale co-location data centres in the country surged.”According to Ngwenyama, AWS, Microsoft and Google Cloud dominate the South African cloud market, accounting for the largest share.
“As a result, South Africa began to see unprecedented growth in data centre investments from global data centre operators, and regional as well as local operators that sought to expand their data centre facilities.” “However, we are seeing that more enterprises are shifting to a hybrid cloud model where they are using on-premises or hosted IT resources in co-ordination with public cloud services, which enables them to accommodate future peak capacity and comply with data residency requirements.”
“This is common among large organisations that have existing IT equipment they have heavily invested in. A hybrid strategy confers benefits of cost, agility and resilience to organisations when their technology supplier or cloud service provider can help them reduce the cost of operating their IT resources in a diverse environment.”
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