Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      ‘System offline’ scourge to end, says Schreiber – but industry must pay

      23 June 2025

      Why the spectrum gold rush may soon be over

      23 June 2025

      Tech stability key to getting South Africa off damaging financial grey list

      23 June 2025

      Naspers shifts to an AI-first strategy – and it’s paying off

      23 June 2025

      Letter: South Africa risks missing AI wave while world surges ahead

      23 June 2025
    • World

      Watch | Starship rocket explodes in setback to Musk’s Mars mission

      19 June 2025

      Trump Mobile dials into politics, profit and patriarchy

      17 June 2025

      Samsung plots health data hub to link users and doctors in real time

      17 June 2025

      Beijing’s chip champions blacklisted by Taiwan

      16 June 2025

      China is behind in AI chips – but for how much longer?

      13 June 2025
    • In-depth

      Meta bets $72-billion on AI – and investors love it

      17 June 2025

      MultiChoice may unbundle SuperSport from DStv

      12 June 2025

      Grok promised bias-free chat. Then came the edits

      2 June 2025

      Digital fortress: We go inside JB5, Teraco’s giant new AI-ready data centre

      30 May 2025

      Sam Altman and Jony Ive’s big bet to out-Apple Apple

      22 May 2025
    • TCS

      TechCentral Nexus S0E3: Behind Takealot’s revenue surge

      23 June 2025

      TCS | South Africa’s Sociable wants to make social media social again

      23 June 2025

      TCS+ | AfriGIS’s Helen Hulett on how tech can help resolve South Africa’s water crisis

      18 June 2025

      TechCentral Nexus S0E2: South Africa’s digital battlefield

      16 June 2025

      TechCentral Nexus S0E1: Starlink, BEE and a new leader at Vodacom

      8 June 2025
    • Opinion

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025

      Singapore soared – why can’t we? Lessons South Africa refuses to learn

      13 June 2025

      Beyond the box: why IT distribution depends on real partnerships

      2 June 2025

      South Africa’s next crisis? Being offline in an AI-driven world

      2 June 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Company News » Counting the cost of the cloud

    Counting the cost of the cloud

    By Paul Ruinaard21 January 2020
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Paul Ruinaard

    Forget about the opportunities that innovative technologies such as artificial intelligence, machine learning and the Internet of things can provide through hyperscale computing. The most important factor influencing South African decision makers when it comes to the cloud is cost.

    In the recent Enterprise Cloud Index Report, released by Nutanix, it can be seen that over the past 12 months, many local companies have done an about-turn when it comes to how they approach the cloud. When the cloud first factored into the corporate agenda many years ago, the focus was on making the transition as quickly as possible to extract the best cost (and security) benefits.

    But in the rush to become part of the “cloud club”, decision makers neglected to build the move around traditional business practices. In other words, they wanted to move so much they paid very little attention to the optimal configuration of their public cloud infrastructure and even whether there were real cost benefits to be had.

    In the rush to become part of the “cloud club”, decision makers neglected to build the move around traditional business practices

    Fast-forward to the present and South Africa has joined other parts of the world in taking a step back to evaluate the efficacy of the cloud and examining the merits of rather going the hybrid route. This has been made possible as a result of the experiences gained in the public environment and adjusting their thinking given the maturity of the cloud market.

    Many companies are realising that the decision-making process is more nuanced than simply moving to public cloud to save money on upfront capital costs. Those initial returns, though substantial, may not persevere long-term, depending on the nature of the workload in the cloud, the fluctuating pricing landscape and other factors.

    Expense management

    Moreover, the hybrid cloud model, which will afford dynamic choice about where to run each workload, has been earmarked as the ideal IT environment going forward.

    But this does not necessarily mean it will be a straightforward transition. Given the lessons learnt in adopting the public cloud too quickly, there is an understandable level of hesitance as businesses re-evaluate where they can get the best returns whether that is on cost, security, performance or something else.

    Unlike many other countries where the focus is on security and compliance from a cloud perspective, local companies tend to remain focused on cost. This should hardly come as a surprise given how many businesses have gone over budget with their public cloud spend. It has now become a case of once bitten, twice shy.

    Having a lower total cost of ownership as the primary benefit of the cloud remains front and centre in the hearts, if not the minds, of decision makers. And this is despite the unforeseen costs associated with going the public cloud route.

    A hybrid selection

    Because of this, it makes sense that going the hybrid route is an enticing option for those who have experience with the public cloud. A hybrid environment not only provides for interoperability between cloud types, it also empowers companies to choose the best cost model for each workload.

    For cost-conscious South African businesses, this is proving to be too good a combination to pass up. Add in additional benefits such as data security and compliance with continually evolving regulatory requirements, and the hybrid cloud becomes a fundamental part of any ICT strategy in the coming months and years.

    In many respects, hybrid equals control. Unlike the public cloud where businesses entrust all aspects of their IT infrastructure to a third party, going hybrid means they can adjust their requirements as they see fit and use elements of the cloud on a needs-basis.

    Going hybrid ensures the company can keep its critical data in a private environment while still being able to quickly leverage the computational power of the cloud to increase operational capacity. This makes it ideal for organisations of all sizes to use the likes of AI, machine learning, automation and so on. Suddenly, an SME can compete with an enterprise in a more affordable and effective way.

    Even though there might not be an immediate move toward hybrid environments, this will start developing naturally over the course of the next three to four years. Each organisation has different requirements, but in a cost-sensitive market such as South Africa, this will remain the golden thread driving cloud decision-making at least for the foreseeable future.

    • Paul Ruinaard is country manager at Nutanix sub-Saharan Africa
    • This promoted content was paid for by the party concerned


    Nutanix Paul Ruinaard
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleBackspace: ‘An SAA pilot walks into a bar’
    Next Article Stellenbosch software firm Skynamo secures R435-million in funding

    Related Posts

    ‘AI Unleashed’: Pinnacle adds value to partners and clients

    11 June 2024

    HPE ‘held talks’ to buy Nutanix

    1 December 2022

    Learning to survive – and thrive – in a multi-cloud world

    5 April 2022
    Company News

    IoT connectivity management in South Africa – expert insights

    23 June 2025

    Let’s reimagine Joburg using the power of tech, data and AI

    23 June 2025

    Netstar doubles down on global markets while backing SA growth

    23 June 2025
    Opinion

    South Africa pioneered drone laws a decade ago – now it must catch up

    17 June 2025

    AI and the future of ICT distribution

    16 June 2025

    Singapore soared – why can’t we? Lessons South Africa refuses to learn

    13 June 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.