the lead
ARTICLE by
CAROL ODERO
Why Cloud Is Africa’s Future When It Comes To Digital Transformation The future of cloud in digital transformation is looking quite promising. Cloud computing is already playing such a major role in digital transformation, making it possible for businesses powered by digital technologies to innovate, collaborate, and compete in new and innovative ways. Google Cloud is one of the largest cloud providers on the planet without a doubt. When they declared their Q1 results earlier in the year, their total cloud sales had hit $7.45 billion, with their revenue growing much faster than the competition, circling in at 28 per cent. Following years of generating an operating loss, Google Cloud successfully turned a profit during the first quarter of 2023, by generating an operating income of $191 million in the quarter, compared to an operating net loss of $931 million year over year. This is an incredible turnaround. I would like to think Google Cloud Africa and its Head, Niral Patel, had something to do with it. In October 2022, South Africa joined Google’s global network of 37 cloud regions and 112 zones worldwide. An announcement that followed the recent preview launch of regions in Malaysia, Thailand and New Zealand. Google Cloud regions make it possible for users to deploy cloud resources from specific geographic locations, and access several services including cloud storage, compute engine and key management systems. Basically, Google Cloud Africa brought it all closer to home: data analytics, AI and machine learning capabilities. So, when Patel flies into the country and an opportunity for a one-on-one interview came up, it was a clear yes. I would like to start off by welcoming you to Kenya, Niral, and thank you so much for showing up. Welcome.
Thank you, Carol. Kenya has become a second home to me, so it is always great visiting. We are having a lot of conversations around technology as a country and a continent. Our current administration being quite keen on a turnaround while pondering how to infuse tech into the country’s agenda. Just like our government, you have to handle the day to day of tech. So to start us off, what do you think is the future of cloud when it comes to digital transformation in Africa? It’s a question everyone is asking themselves especially in this continent. And just to comment on your current administration. Recently, the president of Kenya talked about digitisation as a priority for his government, with a specific milestone. (He directed that all 5,000 government services be digitised by June 2023). That will be an acceleration to digital transformation taking place at a sound rate for Kenya. Primarily, we are seeing governments want to get closer to citizens, and enterprises wanting to get closer to their customers, making lives more effective and efficient in the way we transact. I think the prospects are pretty exciting. You asked about cloud computing. It is an enabler from a scalability perspective, and a secure way on how to provide the services. These are the opportunities open to governments and enterprises. What would you then say would be the
biggest trend/s in cloud over the next 10 years if that is not too many – In technology, 10 years is quite a long time. Sustainability is really top of mind from CEO to Chief Information & Digital Officer (CIDOs) and CIOs when it comes to being responsible for the environment. (The Cloud, according to a 2022 MIT Press Reader article, The Cloud Is Material: On the Environmental Impacts of Computation and Data Storage, cloud computing now has a greater carbon footprint than the airline industry. Stating that the Cloud is not only material, but also an ecological force. That, as it continues to expand, its environmental impact increases, even as the engineers, technicians, and executives behind its infrastructures strive to balance profitability with sustainability). Then there is the acceleration of cloud adoption by businesses. They need to expand, but they also need to meet market, customer as well as citizen needs. We are seeing IT departments are no longer merely supporting teams to the organisation. They are becoming quite integral decision makers at board level. And IT decision makers are no longer reporting to a COO function, but they are reporting directly to the CEO, directly contributing to the transformation and direction we see. And, as tech becomes more adopted across the continent, the need for skills become crucial. There is a big drive on the talent front.
www.cioafrica.co | MAY 2023 | CIO Africa Magazine | by dx⁵ 9
