Intelligent CIO Africa Issue 08 | Page 75

EDITOR’S QUESTION WHAT IS THE CURRENT OUTLOOK OF THE PUBLIC CLOUD MARKET IN AFRICA? EMEA spending on public cloud to reach nearly $34 billion in 2019, says IDC S pending on public cloud services in Europe, the Middle East, and Africa (EMEA) reached $15.1 billion in 2015. According to data recently released by International Data Corporation (IDC), spending is expected to more than double over the next five years, reaching nearly $34 billion in 2019. In EMEA as a whole, spending on public cloud services is forecast to record a compound annual growth rate (CAGR) of 20.5% from 2015 to 2019, although this varies by region and by country within the region. While Western Europe currently accounts for more than 90% of the total public cloud spending in EMEA, the Middle East and Africa is the most dynamic, growing faster than either Western Europe or Central and Eastern Europe (CEE). Broken down by technology, Software as a Service (SaaS) will comprise the largest share of public cloud services in EMEA, accounting for over 60% of total public cloud market value through the 2015–2019 forecast period. Spending on Infrastructure as a Service www.intelligentcio.com (IaaS) and Platform as a Service (PaaS) will post five-year CAGRs of 22.2% and 26.7%, respectively. Spending by industries and size segments have clearly visible trends that differ according to EMEA sub-region. Large and very large businesses account for the more than half of public cloud revenue in EMEA, while in CEMA, small- and medium-sized businesses (SMBs) are the biggest contributors to overall spending, with almost 60% share. From an industry perspective, discrete manufacturers spend the most on public cloud services in Western Europe, and professional services are the largest investors in public cloud in CEMA. “Overall, in Western Europe, adoption of public cloud solutions is on the rise, with discrete manufacturing companies showing both high adoption rates and above-average investment plans for the next 12 months. Other industries growing strongly include utilities and retail,” says Angela Vacca, Research Manager with IDC. “Interest is also rising among SMBs, as more tailored solutions are now available, and these companies need innovative technologies to compete.” In CEMA, adoption of various forms of cloud will be increasing, as a growing number of end user organisations are currently deploying or at least evaluating cloud deployment. Cloud is becoming the underpinning technology for other 3rd platform technologies and delivery models, such as big data/ analytics, mobility, social media, and IoT. “The increasing role of line of business stakeholders supports cloud penetration,” says Vladimir Kroa, Associate Vice President at IDC CEMA. “Professional services organisations, retail businesses, and educational institutes have been early adopters; however, growth will accelerate in discrete manufacturing and government sectors in the near future.” The Worldwide Semiannual Public Cloud Services Spending Guide quantifies public cloud computing purchases by cloud type for 20 industries across eight regions and 54 countries. Unlike any other research in the industry, the comprehensive spending guide was designed to help IT decision makers to clearly understand the industry specific scope and direction of public cloud services spending today and over the next five years. n INTELLIGENTCIO 75