Despite growth, obstacles to public cloud in Africa remain

Infrastructure, bandwidth and regulatory issues throttle cloud expansion as industry insiders analyze best practices, workarounds and alternatives.

cloud computing / cloud network
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African CIOs are increasingly tapping the internet to optimize costs and offer innovative services, but obstacles to public cloud usage appear destined to hamper enterprises on the continent for some time to come.

Even though revenue generated by African public cloud providers increased 60% over the past three years to about US$500 million last year, it accounts for only 5 % of the continent's total enterprise ICT market, according to Xalam Analytics.

"To date, the African market has been a predominantly private cloud market; by our estimates, only ~30% of African cloud service revenue is generated in the public cloud," according to Xalam's 'State of Cloud 2019' report.

Public cloud services revenue will triple, to hit about US$1.5 billion in 2023, but even then it will account for just 40 percent of all cloud revenue, according to Xalam.

This means that, as African enterprises look to the cloud to innovate, they will be underserved by public cloud providers, say industry insiders.

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