Cloud investment: South Africa and India going all in

us__none__cai__cloud_cover__147x165As the saying goes, talk is cheap. To determine a company’s real priorities, take a look at its investments.

With that in mind, the IBM Center for Applied Insights dug a little deeper into the data behind the IBM Global Cloud Study, Under Cloud Cover, to examine regional differences in investment. We found that 80% of South Africa respondents and 78% of India respondents plan to increase investment in cloud computing over the next two years, outstripping spenders across North America (56%), AP (55%), Brazil (52%) and Europe (46%).

You might be thinking Indian and South African businesses are just playing catch up – investing more to reach the prevailing rate of adoption in other parts of the world. Not so.

Turns out, they’re already there. Two-thirds of South Africa respondents have deployed cloud computing – on par with adoption levels in Europe (71%). And India sits at the top of the adoption list at 78%, just edging out Asia Pacific at 77%.

So what’s motivating South Africa and India to keep pumping money into cloud?

It seems they’re prepping their organizations for growth. The top reasons for adopting cloud in other geographies are: cost reduction, collaboration or workflow optimization. But in South Africa and India, cloud decision makers are motivated most by scalability. They want flexibility to expand – fast.

The scalability and agility that cloud provides could explain why they feel so strongly that cloud is helping them gain competitive advantage.

Chart for geo blog

In a recent article, Varun Sood, CIO of Fortis Healthcare India, explains how moving his company’s core systems to the cloud has helped them “scale on demand.” He adds, “Our ability to respond to the business is now in minutes, compared to … weeks or months.”

Cloud also helps solve one very specific, and increasingly critical, scalability issue – the data deluge. Data volumes are mounting every day. And companies like Bharat Light and Power, one of India’s largest clean energy generators, are tapping into cloud to improve data management and take advantage of cloud’s analytic number-crunching power.

Motivations and investment may vary worldwide, but one thing is clear: cloud is enabling important business outcomes. Read the global study to learn more about what’s happening under cloud cover.

Related posts:
Why do business leaders have their heads stuck in the clouds?
Setting the pace of innovation in Africa (Infographic)

2 responses to Cloud investment: South Africa and India going all in

  1. Balaji Laxman says:

    Will you be in a position to throw some light on the trends that you are seeing emerging on the biz volume coming in across various services namely IaaS, PaaS, SaaS and BPaaS. A further cut would be with the nature of clients who are going for his offering. Is it the SMB (< 700 crores INR) or is the large organisations and what kind of applications are they hosting on the same.

    I think it is the IaaS that is making the inroads proviso the pricing is extremely competitive and the construct holds appeal till a certain clip level, The reasons are obvious, it is the low hanging fruits, covert CAPEX to OPEX, let the clients worry about the business while IBM worries about infra management. The other reason is that an organisation need not worry about system maintenance and management and the need for having to develop an inhouse team… as they say, leave it to the experts!

    While, SaaS may work for smaller or stand alone (CRM – Sales force types) or mailing applications, I am not very sure it has been able to make inroads in the ERP space, and when i say ERP I mean true blue ERP like SAP (here I mean SAP and not B-one). Success in cloud for me is when SaaS takes off….

    Needless to say there are enough and more reasons why the SMB will lap up….. they are currently extremely unhappy with the current offerings, it does not necessarily address the actual business issues and challenges, no adequate solution support, no DR strategy in place in case of failure, inability to manage the infrastructure for want of quality resources, current IT inadequate to support growth plans and more importantly, employees are on the move all time, knowledge is not residing in the system.

    From a service provider's perspective, It is a paradigm shift on all the 4P's and only courageous companies who truly believe there is a future in this offering which can give them the leap that they so desire for will take it up….. In India the SMB space is significant, one needs to pick the right industry, develop a solid offering, come up with a pricing that no one can say no to, spell out its game-plan and take to the market to make it a success…

    I will be happy to hear your views on this too…..


  2. Balaji, thanks for your very thoughtful perspective. We may explore the SMB vs. large company findings in a future article. In the meantime, one other resource that you may find useful is our in-depth SaaS study report:


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