Cloud Services: Opportunities and Challenges for East Africa

Danson Njue

Research Analyst – Africa

Informa Telecoms & Media

Danson.njue@informa.com

www.informatandm.com

© Informa UK Limited 2013. All rights reserved

ITNewsAfrica Innovation Dinner

Nairobi, 10 December 2013

16/10/12 www.informatandm.com 2

About ITM

Cloud services:

Basic concepts

Cloud services:

Models and examples

Opportunities and challenges for

service providers in East Africa

Conclusions

Informa Telecoms & Media: Your insight partner

Informa: Leading provider of insight, events and training to the global telecoms and media community

3 June 2013

© Informa UK Ltd. All rights reserved.

www.informatandm.com

About Informa Telecoms & Media

Evolution of Computing

16/10/12 www.informatandm.com 5

Early ’80s-

PCs

Windows, DOS, GUI

Mid ‘80s-

Client /Server

Distributed Computing systems

Mid ‘90s-

Internet

Web Browsers, Emails, Web Hosting

2000s & Future-

Cloud

Cloud computing, Social networking

Cloud Computing

16/10/12 www.informatandm.com 6

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

• Faster deployment of systems

• Improve reliability

Improved productivity

• Access-from- anywhere platforms

• Access to latest software

Impact of Cloud computing

…overall impact of cloud is to transform

businesses and drive revenue and productivity

Cloud computing models and examples: SaaS

16/10/12 www.informatandm.com 7

Consumer Enterprise

Accounting, CRM, ERP

Basic business apps

Virtual desktop

Storage

Multimedia content Gaming Security

Web conferencing

Video conferencing

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).

IaaS/HaaS

Renting the computing power (server, storage and network

infrastructure) for a usage-based cost

.

16/10/12 www.informatandm.com 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 www.informatandm.com 9

Private vs Public cloud

Private cloud Public cloud

16/10/12 www.informatandm.com 10

Hybrid cloud environment: Combination of data and

services from a variety of models to create a unified

cloud environment

Set of hardware, networking, storage, services and interfaces owned and operated by an organisation for use by its employees, partners or customers

Set of hardware, networking,

storage, services and interfaces

owned and operated by a third

party for use by other

companies or users

Services from…

11

Enterprises

Integrators

Colos / hosters

Web

ISPs Telcos

Software Hardware

Devices

Governments Cloud vending machine

*by business origin

Africa’s ICT market players are diverse

But is Africa growing up digital?

12

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.

13

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.

Cloud Africa: Cloud-based education

14

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

Global Trends: Informa Cloud World Forum Global Insights Survey - June 2013

16/10/12 www.informatandm.com 15

IaaS 20%

Unified comms & collaboration

19%

Storage, backup 14%

Departmental apps 8%

Security 7%

Professional services

6%

SaaS marketplace

4%

Vertical apps 6%

Mobile device mgmt 3%

IT management

3%

Generic business apps 3%

Other 7%

CSP cloud services launched in 2012, by type

n = 318

Source: Informa Cloud World Forum Global Insights survey, June 2013

Satisfaction with public IaaS choices is patchy

16

June 2013

© Informa UK Ltd. All rights reserved.

www.informatandm.com

Public IaaS: In your country, do you feel there is competitive choice?

n= 318 Source: Informa Cloud World Forum Global Insights survey, June 2013 % of respondents by region. *small sample size.

Most satisfied

Least satisfied

Eastern Europe & CIS

Asia Pacific

North America Western Europe

Africa

Middle East

Latin America*

14%

39%

47%

Poor

Fair

Excellent

49%

41%

10% 33%

56%

11%

34%

53%

13% 25%

67%

8%

48%

46%

6% 23%

58%

19%

Outside North America, few believe that there’s enough choice in public IaaS.

Cloud computing’s economic impact is valued

17

June 2013

© Informa UK Ltd. All rights reserved.

www.informatandm.com

Is the use of cloud computing critical for a country’s economic competitiveness?

n= 315 % of respondents Source: Informa Cloud World Forum Global Insights survey, June 2013

Implication Nine out of 10 respondents link cloud computing to a country’s

economic competitiveness.

6%

7%

5%

6%

26%

24%

10%

23%

8%

12%

16%

56%

46%

69%

47%

64%

56%

45%

12%

22%

21%

26%

28%

32%

32%

0% 20% 40% 60% 80% 100%

Eastern Europe & CIS…

Asia Pacific respondents

Africa respondents

Western Europe respondents

Middle East respondents

Latin America respondents*

North America respondents

Not important Fairly important Very important Critical

n= 318 Source: Informa Cloud World Forum Global Insights survey, June 2013

% of respondents

Respondents from Africa value the cloud’s economic role most highly.

*small sample size.

18 www.informatandm.com

© Informa UK Limited 2012. All rights reserved

Across African ICT stakeholders, opinions differ

53%

50%

59%

68%

53%

49%

62%

68%

74%

68%

53%

71%

71%

71%

76%

0% 20% 40% 60% 80%

Mobile devicemanagement

Unifiedcommunicatio…

Data storage

Businessapplications

Managedsecurity

Most important cloud services for Africa?

Africanenterprises

African CSPs

African ICTsuppliers

Source: Informa Africa Industry Outlook survey, Nov. 2012

Africa’s ICT stakeholders must be aligned.

Africa Cloud 20:20 Index

19

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)

Africa’s telecom cloud is forming

20

• Claims Africa’s largest

telecom cloud infrastructure

• SME focus

• Also seeks government

partnerships

• Various SaaS; desktop as a

service across subsidiaries

• Virtual servers

• Data center builds

• Diverse SaaS offers

• UC, security & storage

• Cloud-based M2M

• Fiber + datacenter builds

• Cloud telephony

• SaaS trials; MS Office365

•Teraco & Neotel datacenter

tenancy; fiber build

• Madagascar cloud

telephony with Movirtu

• Google social tools

via SMS

• Funding for service

replication in Kenya

& beyond

• NTT-owned DiData +Internet

Solutions extensive cloud offers

• Fiber & datacenter builds

• SME, corporate, MNC

Examples include:

Cloud Africa: Future digital cities

21

Gabon Mandji Island Cybercity

South Africa Tshwane Smart City City of Johannesburg

Fiber and wireless-enabled cloud services will improve trade, education, health and environment in Africa’s emerging digital cities.

Mauritius Ebène Cyber City

Tanzania Rhapta City

Cameroon Douala Smart City

Developments include:

Ghana Ghana Cyber City (Accra)

Flickr/Jonathan Gill

Kenya Konza City

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 www.informatandm.com 22

Opportunities for telcos in EastAfrica

16/10/12 www.informatandm.com 23

Storage and computing on

demand

SaaS

Hosting on demand

Unified Communications

Cloud security services

Wholesale capacity

Cloud –based billing

PaaS

Cloud Brokers

Cloud deployment can be done in a phased-approach

Phase 1

Phase 3

Phase 2

Challenges

16/10/12 www.informatandm.com 24

• Lack of usage-based billing platforms

• Security and privacy concerns • Compatibility and complexity issues • Lack of bandwidth guarantees which may greatly affect the

service

Cloud Africa: A delicate ecosystem

25

Submarine cables

Data centers

Fiber

IXPs

Spectrum

Copper

Telecom assets are critical – but they are not the whole story.

… it is also about…

16/10/12 www.informatandm.com 26

Rational pricing

models

Customer

segmentation

and multiple

cloud

environments

Right deployment model

Thank you

Questions?

© Informa UK Limited 2013. All rights reserved

The contents of this publication are protected by international copyright laws, database rights and other intellectual property rights. The

owner of these rights is Informa UK Limited, our affiliates or other third party licensors. All product and company names and logos

contained within or appearing on this publication are the trade marks, service marks or trading names of their respective owners, including

Informa UK Limited. This publication may not be:

(a) copied or reproduced; or

(b) lent, resold, hired out or otherwise circulated in any way or form without the prior permission of Informa UK Limited.

Whilst reasonable efforts have been made to ensure that the information and content of this publication was correct as at the date of first

publication, neither Informa UK Limited nor any person engaged or employed by Informa UK Limited accepts any liability for any errors,

omissions or other inaccuracies.

Readers should independently verify any facts and figures as no liability can be accepted in this regard - readers assume full responsibility

and risk accordingly for their use of such information and content.

Any views and/or opinions expressed in this publication by individual authors or contributors are their personal views and/or opinions and

do not necessarily reflect the views and/or opinions of Informa UK Limited.