BCX pushes cloud dominance plan with DotCom acquisition

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The acquisition adds to its cloud capabilities, specifically as a Microsoft Azure partner

The group’s mission to take up greater market share in cloud computing and to make its business more attractive for a potential outside investor has been boosted by a recent deal that sees BCX supplying cloud computing products on behalf of Jack Ma’s Alibaba, from which Telkom expects to make money from the 2024 financial year.

BCX believes more businesses are investing in a hybrid approach that mixes on-premises and cloud-based systems, and that the market as a whole is moving towards greater reliance on subscription-based software, infrastructure and managed cloud services. “BCX is [also] aggressively growing its capabilities to create a more balanced product portfolio for growth. The acquisition of DotCom combined with existing capabilities at BCX will create a powerhouse in the cloud space,” BCX CEO Jonas Bogoshi said.

The search for an investor for the IT company is part of a wider strategic push by the fixed-line operator to release billions of rands trapped in its sprawling structure, which includes properties, masts and towers, BCX and internet fibre operator Openserve.business, but progress in finding such a benefactor appears to be much slower than market players had expected.

A lack of solid plans or announcements for BCX, as well as for masts and towers unit Swiftnet and Openserve, has become a concern for the market as the group reported its first full-year earnings.

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