Africa: The outlook of cloud computing

In the midst of global economic challenges, the demand for cloud computing services continues to spike. Businesses around the world are investing in internet infrastructure, whether through services or physical memory, to enhance their operations. Sandeep Mohapatra, Director of Digital Transformation at Absa Bank Mauritius, shed light on the outlook for cloud computing services in Africa during a recent interview with CNBC Africa. Mohapatra highlighted the accelerated digital business transformation brought on by the COVID-19 pandemic. The key growth drivers in this space are the shift towards hybrid work models and the surge in software as a service-based collaboration solutions. Platforms like Microsoft Teams have seen a significant increase in users, with registered users reaching 44 million globally. Additionally, there has been a notable rise in standalone video meeting services, underscoring the growing need for collaboration tools in a remote working environment. Moreover, the rise in video streaming services such as Netflix, Amazon Prime, YouTube, Apple TV, and Disney Plus has further fueled the growth of cloud computing. As businesses face margin pressures and an increasing demand for digital services, moving infrastructure to the cloud has become a strategic imperative. The need to store, manage, and compute critical data, coupled with the exponential growth of customer-centric data, has propelled the adoption of cloud services. While Africa is in its early stages of cloud adoption, the continent is witnessing significant growth in cloud services. African banks, including Absa, have made cloud computing an integral part of their digital transformation strategies. Microsoft's entry into Africa in 2019 with data centers in Cape Town and Johannesburg was followed by AWS's launch of the AWS Africa Cape Town region in 2020, signaling a growing presence of global cloud providers on the continent. As Mohapatra pointed out, the pandemic has played a crucial role in accelerating cloud adoption, forcing companies to pivot to remote work arrangements and cloud solutions. Regulatory bodies in countries like Mauritius have been proactive in setting up cloud guidelines to ensure data security and compliance. This proactive approach has provided the industry with a clear roadmap for transitioning to cloud-based operations while maintaining data integrity. The interest shown by tech giants like Microsoft and Google in African cities signifies a shift towards a more agile and innovative ecosystem. This trend is likely to enhance Africa's competitive edge and drive innovation at a rapid pace. With the region experiencing some of the highest growth rates in cloud spending, Africa is poised to emerge as a key player in the global cloud computing landscape. While Africa is still in the early stages of cloud adoption, the increasing interest from global players and the progressive regulatory environment are expected to fuel further growth in the cloud computing sector. As companies continue to prioritize cost efficiency, agility, and customer experience enhancement, the future of cloud computing in Africa looks promising with immense potential for growth and innovation.