There’s a continuous increase in the need to spend more on enterprise level software, services, data center infrastructures and infrastructure-as-a-Service (IaaS) which is expected to increase the annual IT expenditure of South Africa to a 2.5% increase which will total a huge $26.4 billion based on a new report gotten from the IDC.
The increase is expected to come as IT services will cause a total spending of about $8.2 billion this year 2020 alone which is a 4.2% increase according to Mark Walker on Friday during the opening of the 2020 South Africa edition of the IDC Directions Conference.
Infrastructure spending in the country – including servers, storage, and enterprise-level networks – will increase 3.3 percent to $880 million, he said.
Other parts of the increase will be cloud uptake which can be measured by growth in the IaaS investments which will reach a total of $204 million despite a compound annual growth rate (CAGR) of about 25% over the last five years.
Despite the robust growth rate, South Africa started from low level cloud infrastructure investment which is changing throughout the continent of Africa in general since cloud-based is now being smiled upon as an expenditure saving avenue which will save costs and increase the production and upscale of new services whatsoever.
Among the growing number of growth in infrastructure saw the launch of the Microsoft Enterprise grade cloud data center in Cape Town and also in Johannesburg while Amazon Web Services is expected to launch its own hyperscale cloud data centers later this year.
“The digital economy is at a critical tipping point,” said Jyoti Lalchandani, IDC’s group vice president and managing director for the Middle East, Turkey, and Africa, in prepared remarks at the IDC Directions event.
“In just a few short years, IDC forecasts that nearly half of all GDP worldwide will come from products and services offered by digitally transformed organisations,” Lalchandani said. “In order to thrive, organisations must define their new role in this digital economy and proactively address new customer requirements around personalisation and trust. They must also develop new capabilities around digital innovation, work, and intelligence, and build a digital IT infrastructure that supports resilient operations and pervasive experiences.”
There have been lots of difficulties growing up cloud-based infrastructures throughout Africa with challenges being about confirmatory data management. Enterprises and Public Administrations, Télécommunication infrastructure providers and public cloud vendors are all working hard enough in order to overcome these infrastructure issues while creating a much more efficient solution that can encourage the adoption of cloud-based infrastructures throughout the continent.
An increase in the number of hyperscale cloud providers over the next few years is expected to help enterprises tap cloud services including SaaS applications as well as compute infrastructure.
As African countries seek to move to a more robust cloud system, so will be the need to invest tons of cash to be able to build and implement this infrastructures throughout the continent and as South Africa economy is growing, IT-Based services are on the rise in the country leading to the need for a more robust system that can be scaled whenever and easy to manage.