south african managed services in the era of the cloud - which verticals hold the key to market...
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South African Managed Services in the Era South African Managed Services in the Era of the Cloudof the Cloud
Which Verticals Hold the Key To Market Growth?Which Verticals Hold the Key To Market Growth?
26th October 2011
Today’s Presenter
Ishe Zingoni, Industry Analyst
Frost & Sullivan
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• Dynamic expertise in ICT and Healthcare research and consulting
• Frost & Sullivan solid experience spanning four years
• Recently completed research on the managed services market in South Africa
Focus Points
• Managed Services— More Relevant Now than Ever Before
• Market Overview—Segmentation and Life Cycle
• Key Market Drivers and Restraints
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• Data Centre and Cloud Hosting Trends
• Demand Trends and Key Opportunities
• Conclusions and Take Away
Managed Services— More Relevant Now than Ever Before
• “A service you purchase from a vendor with the expertise,
personnel and infrastructure necessary to deliver exactly what
you need, when you need it.”
� Current economic conditions
� Potential to control costs
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� Cloud computing topical issue, but frequently misunderstood—
not a hype, but reality
� Critical that end-users and service providers understand the
pertinent issues
Market Overview—Segmentation and Life CycleA
do
pti
on
Rate
High
Introduction Growth Maturity Decline
Web Hosting
Managed Security
Network management
Data centre
Segment Lifecycle Analysis (South Africa), 2011
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Time
Ad
op
tio
n R
ate
Low
Cloud services
Unified communications
Data centre
Total Managed Services Market = $2.09 BillionTotal Managed Services Market = $2.09 Billion
Key Market Drivers and Restraints
Infrastructure developments
Need to focus on core
business
Need to manage costs –
reduce TCO
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Source: Frost & Sullivan.
Security concerns
Regulatory and compliance
issues
Data Centre and Cloud Hosting Trends
Providers will move away from pure colocation to managed hostingProviders will move away from pure colocation to managed hosting
13%10%
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Data Centre and Cloud Hosting Trends (Contd…)
Data Centre Market Trends (South Africa), 2011
High Impact
Employee mobility
Green IT and energy efficiency
Public sector adoption
Virtualisation and cloud computing
High Growth Impact
MediumGrowthImpact
ProjectedSMMEs
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Low Impact
Certainty
Low High
Employee mobility
Data centre automation
LowGrowthImpact
Source: Frost & Sullivan.
ProjectedImpact on the
Market
Demand Trends and Key Opportunities
Mining
Oil & Gas
Professional Services
Government
Retail
Data Centre Hosting Market: ICT and Data Centre Expenditure (South Africa), 2010
� Retail sector is the biggest
spender in DC market
� Retail, manufacturing, financial
Retail sector dominates spending in data centre servicesRetail sector dominates spending in data centre services
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0.0 50.0 100.0 150.0 200.0
Automotive
Financial
Healthcare
Manufacturing
Media
Mining
$ million
ICT Spend DC Spend
and mining ≈ 93%
� Retail poised to grow due to
rapid growth in FMCG
transactions
Demand Trends and Key Opportunities (Contd…)
FinancialICT
TransportMining
Media
Oil and Gas
Healthcare
Government
Retail
0
12
34
56
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Ease o
f m
ark
et
acces
Managed Services Market: Vertical Sector Opportunity Analysis
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Oil and Gas0
0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
Ease o
f m
ark
et
acces
Market revenue growth rate, 2010-2016
Segment Trend Segment Trend
Retail ▲ Manufacturing ▼
Financial ▲ Mining ▼
Government ▲ Transport ▼
Conclusions and Final Word
• To manage costs, enterprises are moving from CAPEX to OPEX.
• Virtualization and cloud computing have added impetus to the development of data centre market.
• Service providers are moving from pure colo to managed hosting and cloud offerings
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and cloud offerings
• The Government , retail and financial sectors to remain the key DC spenders. Government expected to increase the adoption of new applications.
• SMMEs to drive the market for cloud-based offerings.
Next Steps
� Request a proposal for or Growth Partnership Services or Growth Consulting Services to support you and your team to accelerate the growth of
your company. ([email protected]) +27 21 680 3574
� Join us at our annual Growth, Innovation, and Leadership 2012: A Frost & Sullivan Global Congress on Corporate Growth (www.gil-global.com)
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abreast of innovative growth opportunities
(www.frost.com)
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Frost & Sullivan Contacts
Birgitta CederstromBusiness Unit Leader – ICT AfricaFrost & Sullivan Africa +27 21 680 [email protected]
Merwin GrootboomAccount Manager – ICT South AfricaFrost & Sullivan Africa+27 21 680 [email protected]
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Christie CronjeCorporate CommunicationsFrost & Sullivan Africa+27 21 680 [email protected]
Kate HowarthDirector of SalesFrost & Sullivan Africa+27 21 680 [email protected]