is south africa behind the enterprise cloud curve?

April 11, 2023

Cloud Computing – Are you behind the curve? Brian PinnockHead of Product Strategy and Innovation

2© Copyright 2010 Internet Solutions April 11, 2023

Cloud isn’t new anymore

2006 1999


Reference: National Institute of Standards and Technology (2012), Africa Analysis, DCSRM

Cloud definitions

PersonalCloud

On-demand

Self service

Network access

Resource pooling

Rapid elasticity

Measured service


Agenda

Is Enterprise Cloud inevitable?

Where is the curve?

Where is the curve in SA?

Catching up to the curve

Is Enterprise Cloud inevitable?


Underlying macro trends

Reference: Nicholas Carr | The Big Switch 2006



Similar patterns - electrification

Steam and water

Electricity

Self generation

Utility power



Similar patterns - electrification

Networks

Standards (AC/DC)

Economies of scale

Competitive disadvantage

95% utility power



Why now?

100 years laterit’s IT’s turn!

Mainframe

Client/server

Cloud

Moore’s Law

Grove’s Law


World wide computer

“When the network becomes as fast as the processor,the computer hollows out and spreads across the network”

- Eric Schmidt, 1993


Source: Gartner 2012

“Most of our needs are more sophisticated”

Lower app cost

Criti

calit

y of

the

appl

icati

on

Higher app cost

70% of Enterprise IT

budget

30% of Enterprise IT budget

Public Cloud computingsweet spot


Source: Clayton Christensen: Innovator’s Dilemma (1997, 2011)

A classic disruptive technology

Time

Perf

orm

ance

Performance demanded at the high end of the market

Performance demanded at the low end of the market

Sustaining technology

Disrup

tive te

chno

logy

Where is the curve?


Source: Google Trends (2012)

Past the peak of inflated expectations?

“Cloud computing”

2005 2006 2007 2008 2009 2010 2011 20120

20

40

60

80

100



Gartner Hype Cycle for Cloud



• Virtualisation • Big data• Cloud advertising• Cloud computing• Community Cloud• Platform as a Service

• DevOps

• Application PaaS• Cloud BPM• Cloud management platforms• Cloud security and risk standards• Cloud/web platforms• Cloud-bursting• Cloud optimised application design• Elastic multi-tenancy• Enhanced network delivery• Infrastructure as a Service (IaaS)• Personal Cloud• Private Cloud computing

• Cloud application development services

• Cloud parallel processing• Cloud services brokerage• Hybrid IT

• Cloud email• Database platform as a Service (dbPaaS)• IaaS + Middleware• Private platform as a Service• Public Cloud storage• Software as a Service (SaaS)

• BPaaS• Cloud collaboration

services• MDM solutions in the

Cloud

• Sales force automation SaaS

• Dedicated email service • Browser client OS

stress | plan | relax | ignore

less than 2 years 2 to 5 years 5 to 10 years more than 10 years

stress plan relax ignore

transformational

high

moderate

low


Source: Forrester 2012

Predicted global Cloud market

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20200

50

100

150

200

250

300

Reve

nue

($bn

)

Predicted


What the 2012 surveys are saying

Source: Symantic (2012), IDC (2012), Dimensional Research (2012)

94%

Enterprise at leastdiscussing Cloud

58%

Cloud met compliance requirements

40%

Enterprises adoptinghybrid Cloud platforms

51%

Cloud offered greater competitive advantage

69%

Enterprises sayPrivate is top choice

25%

Rogue Cloudis more frequent


Cloud has gone mainstream… …but adoption is in relatively early stages

Source: Everest Global (2013)

Hybrid cloud (IaaS)

Business process as a Service (BPaaS)

Private cloud (IaaS)

Public cloud (IaaS)

Platform as a Service (PaaS)

Software as a Service (SaaS)

0% 20% 40% 60%20%

23%

11%

18%

10%

5%

36%

22%

23%

26%

27%

10%

27%

27%

36%

26%

25%

28%

17%

28%

30%

31%

38%

57%

Enterprise Cloud adoption by Cloud layer

Already adopted Adopt in near future Adopt in distant futureNo plans to adopt

48%

34%

18%

Enterprise IaaS adoption plans

Plan to implement cloud infrastructureAlready have cloud infrastructureNo plans for cloud infrastructure


The reason we’re at an early stage is that there are still many obstacles

Capacity

Security

Compliance

Reliability

Lock-in

Skills

Application profile

Standards

Where is the curve in SA?


Source: Google Trends (2012)

SA interest (not technology) is behind the curve

Cloud computing IaaS SaaS PaaS

2005 2006 2007 2008 2009 2010 20110

20

40

60

80

100

Average


SA data centre adoption trends

Source: Frost & Sullivan 2012

Low

High

Adop

tion

rate

Introduction Growth Maturity Decline

Cloud storage, virtual server and desktop, remote backup and hosted exchange

are promising service segments as traditional product lines are maturing

Cloudstorage

Virtualdesktop

SaaS

Virtualserver

Web hostingWAN

Managed serversLAN

Hosted enterprise security

Remote backup

Hosted managed backup

DR

Basichosting


Data centre space by region

Source: Africa Analysis (2011)

71%27%


Predicted data centre space in SA to 2016

Core DC Services: All except ‘Other’ Source: Africa Analysis (2011)

Cooling

Power

Space

2009 2010 2011 2012 2013 2014 2015 20160

10,000

20,000

30,000

40,000

50,000

Core DC services Other DC services

Spac

e (t

hous

and

m²)


Future SA data centre revenues?


• Virtualisation solutions are a key technology trend as they offer significant efficiencies and cost savings to companies of all sizes

• As a result, SaaS, virtual desktop and virtual server are expected to have the highest growth rates to 2016

• The importance of core services to overall data centre revenues will decline by 2016, as these services also become more commoditised

Basic hosting

Cloud storage

Disaster recovery

Hosted enterprise security

Hosted managed backup

LAN

Managed servers

Remote backup

SaaS

Virtual desktop

Virtual server

Web hosting

0 200 400 600 800 1000

2010 2016

SaaS uptakewill be driven by hosted exchange,

CRM and UC

Cloud storageis a small

sub-product ofCloud-based services

CAGR

8%

13%

30%

23%

10%

8%

2%

8%

10%

5%

12%

5%

Virtualisation

SaaS


Financial sector Retail Manufacturing

Cloud adoption by Sector in SA


Low barrier Medium barrier High barrier

Managed servers

SaaS

Virtualisation

Basic hosting

IaaS

Existing and planned cables


Total fibre market: route km 2011-2016

Source: BMI

2011 2012 2013 2014 2015 20160

4,000

8,000

12,000

16,000

FibreCo Co-build Telkom (new build) Telkom (maintenance) Broadband Infraco

Neotel Metro Municipalities Provincial governments Open access metro build FTTH

Catching up to the curve


The expected journey to Cloud?

Hybrid

PublicPrivate

Consolidation

Automation

Virtualisation


Ensuring enterprise Cloud adoption

Customer adoption cycle

● Technical and business drivers ●Preferred

entryAd hocentry

Disillusionment

Early exit point ●

Provider adoption cycle

● Customer drivers and needs

Influence

If problemsfail to change

● Customers exit



Hybrid IT Departments

IT organisation acting asa provider and broker

User or consumer

Traditional IT Private Cloud Hybrid Cloud Public Cloud

Traditional ITmanagement

group

Private Cloudmanagement

group

Public Cloudmanagement

group

IT ServicesBroker group

Conclusion

Ubiquitous powerunlocked innovation


The embrace of utility power

1910 1915 1920 1925 19300%

20%

40%

60%

80%

100%

Utility supply Private supply

QUESTIONS?