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Arica, adopting cloud on its own terms

Overview of cloud adoption in Africa

Ian Duvenage Head of ICT, Africa Frost & Sullivan @ianduvenage

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Africa‟s fundamentals are changing - will you be ready?

To take advantage of this long-awaited growth cycle, early entry is vital to ensure competitive positioning

Source: Frost & Sullivan

GDP Growth

1990‟s 2000‟s

FDI Inflows

Civil Wars

2.2% 5.5%

1990 2010

1990‟s 2000‟s

15 5

$66.32bn $342.51bn

Foreign Debt

to GDP

1990‟s 2000‟s

61.8% 37.4%

• Agriculture & Agro-

processing

• Agricultural chemicals

• Oil extraction and

investment in

refining capability

• Construction

• Transport, energy, water

supply/treatment

• Healthcare

Nigeria

Zambia

Ethiopia

DRC

Ghana

Note: Countries based on score determined from

weighted average of per capita GDP and potential

growth, GDP & GDP potential growth, FDI stock and

growth, political stability, export and import growth

potential, and population size and population growth

potential

Countries with High Growth and Investment

Potential in Africa, 2013-2015

Africa to Average

4.8% GDP Growth

in 2013

• Retail

• Financial services South Africa

Gabon

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Diversified

In Transition

Highly

Dependent on

Primary Sector

Note: Bubble Size Denotes GDP Per Capita (Constant 2005 US$)

Which countries are on our growth radar?

Country Comparison for Economic Diversity and Export

Strength, Africa, 2011

Source: International Trade Commission, World Bank and Frost &

Sullivan

Angola

Burkina Faso

Congo, Dem. Rep.

Egypt, Arab Rep. Ethiopia

Ghana

Kenya Malawi

Morocco Mozambique

Namibia

Nigeria

Rwanda

Senegal

South Africa

Sudan

Uganda

Zambia

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0

Exp

ort

s o

f G

oo

ds &

Serv

ices (

% o

f G

DP

)

Manufacturing & Services Value Added (% of GDP)

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Global perceptions, Frost & Sullivan public sector survey

Improved coordination across all levels of government within the country

yields the greatest positive impact on the workings of a government

“Which focus areas yield the greatest positive impact on the workings of a

government?”

Frost & Sullivan, 2013

19%

19%

14%

14%

11%

7%

7%

5%

3%

0% 5% 10% 15% 20% 25%

Improving coordination with other levels of governmentwithin the country

Adopting technological innovations

Adopting a 'customer-centric' approach to delivering publicservices

Attracting and retaining a competent workforce

Aquiring best practices from the private sector

Increasing collaboration with foreign governments

Improving mechanisms to collect stakeholder feedback onpolicies

Moving towards evidence-based budgeting

Other

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Growth in Africa

With real GDP growth of 5% in 2012, Africa is the world‟s second fastest

growing economy

South Africa

Nigeria

Algeria

Ethiopia

Mauritius

Ranks 19/185 for

Ease of Doing

Business in 2012

12th fastest growing

economy in 2012

Economic growth rate of

8.5% in 2012

Ranks 52/144 in

Global Competitiveness

in 2012

$114 billion, 40% of resources for 5 year

plan allocated to

Human

Development

GDP growth over 6% p.a. for the past

decade

Some highlights in terms of development and business on the continent

World Bank, IMF, LEX Africa, United nations, WIPO, INSEAD

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C

B Bauxite

Uranium

Gold

Copper

Diamonds

Oil

Gas

Timber

KEY:

Iron Ore

Coal

C

C C

C C

C

C

B B

B

Source: Frost & Sullivan Analysis

KEY: Corridors

Current roads

Proposed roads

Current rail

Proposed rail

Current and

proposed ports

Resources, Agriculture and Retail are the major drivers of trade in Africa

Growth in Africa

African Trade Corridors – what is driving their development and why?

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ICT Development & Progress

53% - Sub Saharan

Africa’s mobile

penetration rate

85km/day -

Average new

terrestrial optic

fibre entering

service

19% - Sub Saharan

Africa‟s internet

penetration growth

rate

4.5% - Average

Economic Growth

Rate Across Africa

31% - of the population with

access to electricity

2013

Eritrea 10%

Ethiopia 19%

DRC 23%

Lowest Mobile Penetration Markets

Burundi 10% Niger 25%

Central African Republic 24%

Madagascar 26%

Malawi 26%

South Sudan 29%

2013

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Drive

rs R

estrain

ts

Drive

rs R

estrain

ts

Reduced Capex Cost

Contract Flexibility and Convenience

Infrastructure Development

High Availability

Cloud Uncertainty

Regulatory Environment

Migration Costs

Shortage of IT Skills

Denotes long-term impact

Denotes current impact Source: Frost & Sullivan.

Cloud Adoption – Driver and Restraints

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Requirements from Cloud providers in Africa

Data storage is high

priority, even when

power outages occur

Data Security to

satisfy public

and private

sector

Automated service

provisioning for faster

uptime Low requirement for

skill to set up and

maintain

Standardisation to ensure

ease of use across platform

Allow the user to focus on results obtained rather than „how to use‟

Lower training

requirements for

users and technicians

Clarity on the CAPEX

vs OPEX optimisation

through using the

solution

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What will drive adoption of cloud in Africa?

Application developers to follow the lead of M-Pesa type

applications in other industries. Ensuring the un-webbed

are exposed to web-based services. 1

Initiative like Apps4Africa that challenges developers to

solve some of the real problems in Africa, with good

successes to date. 3

Non-government organisations are embracing the mobile

cloud as a tool for aiding economic and social

development. 2

Adoption of cloud based solutions for e-health, e-education

and other government services. 4 Products and service developed for the local culture,

needs, infrastructure and financial capabilities 5

Mobile

Applications

Economic Aid

Technology

Development

ecosystems

Government

Adoption

Needs based

development