$1bn cloud orchestration treasure awaits bold innovators in emerging markets

Joy Agwunobi

DAI Magister, a financial oracle with deep expertise in climate tech, deep tech, B2B SaaS, fintech, and communication tech, has sounded the clarion call of opportunity on the African continent, revealing a  bounty of untapped potential in cloud orchestration worth $1 billion waiting to be harnessed by in innovators of the digital age.

Cloud orchestration, according to Red Hat, the world’s leading provider of enterprise open source solutions, is the process of coordinating tools, applications, application programming interfaces (APIs), and infrastructure across private and public clouds into comprehensive workflows.  The significant innovation enables IT teams to organise the automation of cloud management tasks across teams and domains. By coordinating automation into workflows across multi cloud and hybrid cloud environments, administrators are able to improve the efficiency and reliability of cloud computing systems, making them easier to maintain over time.

Despite technological advancements on a global scale, the tale of cloud adoption has been found to be a two-sided coin, spinning an extravagant dance of progress and potential for Europe and North America on one side, while casting a shadow of underutilisation on the other for the emerging markets of Africa.

In a striking contrast, virtually every major company with over 250 employees in the developed world has embraced the limitless possibilities of the cloud, while a mere 17 per cent of large-scale African companies have ventured into this frontier of digital transformation.

Oliver Warren, associate at investment bank DAI Magister,  remarked that the second most populous continent on Earth, with its breakneck population growth and boundless potential, presents a world of opportunity to those bold enough to embrace the world of cloud orchestration.

According to Warren, the absence of startups solely dedicated to cloud orchestration in Africa belies the enormity of the opportunity that awaits the savvy international players who dare to venture into this uncharted territory, reaping the benefits of first-mover advantage in a market poised for explosive growth.

Warren further highlighted the singular potential of African startups in navigating the distinct terrain of their home markets. He noted that in the vibrant and varied mosaic of African cultures, economies, and regulations, native startups hold a distinct advantage in deciphering the needs and opportunities that lie hidden in the African cloud space. These local startups, according to Warren, can unlock the tremendous potential of the cloud by crafting solutions that speak to the distinctive contours of their local markets, in ways that transcend the one-size-fits-all approach of their international counterparts.

“Moreover, by building a strong presence in their respective bases, these startups can position themselves as leaders in their region and potentially expand to other burgeoning marketplaces in the future,” He added.

Peering beyond the horizon of opportunity in the African cloud space, Warren acknowledged the formidable barriers that must be traversed by those seeking to unlock its full potential,” he cautioned. He observed that despite the evident promise of the cloud, the road to widespread adoption in Africa is littered with obstacles, not least among them the insufficient awareness and understanding of cloud technologies amongst many enterprises embarking on their maiden voyage into the cloud.

“Organisations are still hesitant to migrate to the cloud due to concerns about data security, privacy, and sovereignty. Cloud orchestration companies must therefore invest in education and awareness campaigns to help enterprises understand the benefits of cloud computing and how cloud orchestration can help them overcome the associated challenges,” he noted.

Warren however maintained  that regardless of the obvious difficulties, emerging markets such as Africa present a significant opportunity for growth and innovation. He expressed confidence that as more enterprises embrace digital transformation and adopt cloud technologies, the demand for cloud orchestration solutions is likely to rise.

He concluded that cloud orchestration companies that can navigate the challenges and tap into this market early on are likely to reap the benefits in the long run.