Huawei cloud among top providers in South Africa’s growing cloud market

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Huawei Cloud has been identified as one of the top three cloud service providers in South Africa, according to the “2024 South Africa Cloud Computing Market Growth Forecast Report” by Africa Analysis. This is a significant development considering Huawei’s relatively recent entry into the South African cloud market six years ago.

The report highlights the rapid growth of the cloud market in South Africa, valued at approximately R35 billion in 2023, and projected to grow to over R113 billion by 2028. One in five surveyed users reported running significant workloads on Huawei’s platform, indicating the company’s swift rise in the competitive landscape.

Read: Huawei Africa Connect 2024 highlights tech solutions for Sub-Saharan Africa

The report also examines the broader trends and developments within the local cloud computing sector. Public cloud services continue to dominate, while the private cloud segment is noted as the fastest-growing area, expected to expand by a third between 2023 and 2028.

Three main factors

Africa Analysis attributes this market growth to three main factors: substantial investments by global cloud providers, the push by governments and corporations towards cloud-first strategies, and increased investments in data centres to support cloud computing, AI, and big data analytics. These factors are driving demand for colocation data centres, which offer services to maintain costs and reliability for organisations.

The report also points out the role of data sovereignty laws in the establishment of data centres within South Africa, ensuring data is stored and processed domestically. This development is essential for maintaining high-speed internet access and reliable information processing, crucial for cloud services.

As organisations increasingly adopt hybrid multi-cloud strategies, the criteria for selecting cloud vendors are expected to evolve. The report notes that infrastructure investments and the maturation of South Africa’s ICT sector, combined with the adoption of advanced technologies like 5G, AI, and big data analytics, are likely to further drive the country’s cloud computing capacity and market growth.

A recent Gartner report ranked Huawei Cloud as the third-largest provider in South Africa by revenue in 2022. The continuous investments in infrastructure, technology, and skills development are positioning South Africa to potentially become a global leader in the cloud computing sector.

The “2024 South Africa Cloud Computing Market Growth Forecast Report” underscores the dynamic changes and growth potential in South Africa’s cloud market, with significant implications for both local and international stakeholders.

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