A
recent survey by McKinsey reveals that African businesses are embracing cloud
technology at a remarkable rate, with 45% of participants reporting that their
workloads are housed in the public cloud. This adoption rate is on par with, or
even ahead of, that of North America and China.
The
rapid adoption of cloud technology in Africa is reminiscent of the continent's
swift embrace of mobile technology. In 2000, sub-Saharan Africa was 90% less
likely to have access to fixed telephone lines than other regions. However, the
urgent need for voice connectivity and mobile banking led to a rapid adoption
of mobile technology, making Africa the fastest-growing region for mobile
technology by 2020.
Similarly,
African businesses are now poised to leapfrog ahead in cloud adoption, driven
by limited legacy infrastructure and innovative technology advances. The
potential prize is significant, with McKinsey projecting a global cloud value
of $3 trillion, of which $797 billion is attributed to Africa and Europe.
However,
challenges persist, including wide variations in language, culture, and
currency, as well as lower market maturity levels, differing regulatory
environments, limited infrastructure, and a shortage of colocation data
centers. Moreover, cloud service providers in Africa sometimes charge more for
the same services than in other regions.
Despite
these challenges, African companies that can make the leap to cloud stand to
gain significantly, particularly in sectors such as banking,
telecommunications, and oil and gas. As the continent continues to embrace
cloud technology, it is clear that Africa is no laggard in the digital
revolution.
By: Nana Appiah Acquaye
