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South African Businesses Embracing Cloud Computing

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Nyakundi Report

Newsroom 2 min read

This archive report was first published on 6 December 2021.

Published on December 6, 2021, the COVID-19 pandemic accelerated the adoption of remote work in South Africa, leading many businesses to reassess their office space needs.

Andrew Cruise, Managing Director of Routed, a vendor-neutral cloud infrastructure provider, notes that many South African businesses have reduced their office space, opting for remote work arrangements that save money while maintaining operational efficiency.

While only about 5% of the South African enterprise market has fully transitioned to cloud computing, Cruise believes that more businesses are considering this option.

The Benefits of Cloud Computing

Cloud computing offers several benefits, including cost savings and increased flexibility. According to Cruise, companies no longer need to invest in on-premises hardware, as cloud services provide a more flexible solution.

Cloud computing also reduces the risk of hardware failures, disaster recovery, and maintenance costs. By renting hardware, businesses can avoid the hidden costs associated with owning and maintaining their own equipment.

The Hurdles to Cloud Adoption

However, Cruise cautions that moving to the cloud is not a straightforward process. Some businesses may still need to maintain certain systems on-premises for compliance purposes.

Good internet connectivity is also essential for cloud computing to be effective. Cruise emphasizes the importance of fast, reliable, and affordable internet for enterprise cloud adoption.

Timing is also a critical factor in cloud adoption. Cruise suggests that businesses should consider moving to the cloud when their hardware cycles are nearing the end, rather than upgrading hardware and then moving to the cloud.

Choosing the Right Cloud Provider

With the growing demand for cloud services, several new entrants have joined the market in South Africa, including Vantage's new data centre and Oracle's cloud presence. However, Cruise warns that businesses should not rush into cloud adoption without proper analysis and consideration.

He advises businesses to carefully evaluate cloud contracts and providers, ensuring that they meet their specific needs. Cruise also cautions against discounted contracts that may come with hidden costs and long-term commitments.

Routed has taken a vendor-like approach to its business, enabling it to provide partners with the best cloud solutions for their customers. Cruise emphasizes the importance of choosing the right partner to support the transition to cloud computing.

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