Public Cloud - South Africa

South Africa

Revenue in the Public Cloud market is projected to reach US$3,761.00m in 2024.
Platform as a Service dominates the market with a projected market volume of US$1,220.00m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 17.25%, resulting in a market volume of US$8,336.00m by 2029.
The average spend per employee in the Public Cloud market is projected to reach US$149.70 in 2024.
In global comparison, most revenue will be generated in the United States (US$388.50bn in 2024).

Key regions: United States, Germany, China, Japan, United Kingdom

Definition:

A public cloud is defined as the digital infrastructure and computing resources that are managed by a service provider. Examples of public cloud computing resources include virtual machines, storage, and services, all of which are available for purchase with flexible (e.g., pay as you go and subscription) business models. Such payment options make it possible for customers to access, scale, and utilize resources as needed. Public cloud solutions make it possible for users to save on IT costs, increase their efficiency, and take advantage of advanced technologies without having to invest in long-term IT solutions. Public cloud service providers own and maintain the physical infrastructure, hardware, and software. Users only need to pay for the computing resources that they require. The Public Cloud market refers to the companies that provide these cloud computing resources and services to individuals, businesses, and organizations.

Structure:

The Public Cloud market is structured into five markets based on the type of service models provided by the companies.

The Infrastructure as a Service (IaaS) market covers the resources and services related to the data center infrastructure.
The Platform as a Service (PaaS) market covers the resources and services related to the virtual environments used for software development.
The Software as a Service market (SaaS) market covers the resources and services related to software applications that can be accessed via a web browser.
The Business Process as a Service (BPaaS) market covers the resources and services related to the various business processes such as finance and accounting, human resources, customer service, and supply chain management, all delivered through the cloud.
The Desktop as a Service (DaaS) market covers the resources and services related to virtual desktop environments, which are accessible from any device with an internet connection.

Additional Information:

The public cloud market comprises revenue, revenue change, average spend per employee, and key player market shares as key performance indicators. Only revenues that are generated by primary vendors at the manufacturer price level either directly or through distribution channels (excluding value-added tax) are included, and revenues generated by resellers are excluded. Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B) as well as governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed.

Key players of the public cloud market include companies such as Amazon (Amazon web services), Microsoft (Azure), Google (Cloud), and IBM (Cloud).

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Market

Region

Region comparison

Currency

Analyst Opinion

The Public Cloud market in South Africa is experiencing significant growth and development.

Customer preferences: South African customers are increasingly adopting Public Cloud services for their business needs. This can be attributed to several factors. Firstly, the Public Cloud offers scalability and flexibility, allowing businesses to easily adjust their computing resources as needed. This is particularly attractive for small and medium-sized enterprises (SMEs) in South Africa, as it allows them to access enterprise-level computing power without the need for significant upfront investments. Additionally, the Public Cloud offers a wide range of services and solutions, catering to various business requirements, such as storage, computing power, and software applications. This versatility appeals to customers across different industries and sectors.

Trends in the market: One of the key trends in the South African Public Cloud market is the increasing adoption of Software-as-a-Service (SaaS) solutions. SaaS allows businesses to access software applications and services over the internet, eliminating the need for on-premises installation and maintenance. This trend is driven by the growing demand for productivity tools, customer relationship management (CRM) software, and collaboration platforms. South African businesses are recognizing the benefits of SaaS, such as cost savings, ease of use, and automatic updates. Another trend in the market is the rise of hybrid cloud solutions. Hybrid cloud combines the use of Public Cloud and private infrastructure, allowing businesses to leverage the benefits of both. This approach provides greater flexibility and control over data, while also benefiting from the scalability and cost-effectiveness of the Public Cloud. South African businesses are adopting hybrid cloud models to meet their specific needs, such as data sovereignty requirements and security concerns.

Local special circumstances: South Africa has a unique set of circumstances that contribute to the development of the Public Cloud market. Firstly, the country has a growing digital economy, with increasing internet penetration and smartphone adoption. This creates a conducive environment for the adoption of cloud services, as businesses and individuals become more comfortable with online platforms and services. Additionally, South Africa has a high concentration of SMEs, which are driving the growth of the Public Cloud market. These businesses often have limited IT resources and budgets, making the Public Cloud an attractive option for their computing needs. The Public Cloud allows them to access enterprise-level infrastructure and services at a fraction of the cost of building and maintaining their own IT infrastructure.

Underlying macroeconomic factors: The South African economy is undergoing digital transformation, with businesses across industries looking to leverage technology to drive growth and efficiency. This has led to increased investments in cloud infrastructure and services. Additionally, the government of South Africa has recognized the importance of digitalization and has implemented policies to promote the adoption of cloud services. This includes initiatives to improve broadband connectivity and support the development of local cloud service providers. Furthermore, the COVID-19 pandemic has accelerated the adoption of cloud services in South Africa. The shift to remote work and the need for digital collaboration and communication tools have highlighted the benefits of the Public Cloud. Businesses have realized the importance of agility and resilience, and the Public Cloud provides the necessary infrastructure to support these requirements. In conclusion, the Public Cloud market in South Africa is experiencing significant growth and development, driven by customer preferences for scalability, flexibility, and a wide range of services. The adoption of SaaS solutions and hybrid cloud models are key trends in the market. The unique circumstances in South Africa, such as a growing digital economy and a high concentration of SMEs, contribute to the development of the Public Cloud market. Underlying macroeconomic factors, such as digital transformation initiatives and the impact of the COVID-19 pandemic, further drive the growth of the market.

Methodology

Data coverage:

The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the money spent at manufacturer price level (excluding VAT).

Modeling approach / Market size:

Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and reports from our primary research. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and level of telecommunications infrastructure. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. The main drivers are the GDP and the level of digitization.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.