South African organisations have largely embraced cloud computing, but industry experts argue that the real challenge is no longer whether to adopt cloud technologies – it is how to manage them to deliver measurable business value.
This shift is occurring as organisations increasingly adopt hybrid and multi-cloud strategies to balance performance, flexibility, compliance and risk requirements. While these approaches can deliver significant benefits, they also introduce greater complexity.
Independent research from Africa Analysis projects strong growth in South Africa’s cloud computing market, forecasting a compound annual growth rate of more than 26% between 2023 and 2028. The study estimates that the market will reach an approximate value of R113-billion by 2028, underscoring the rapid mainstreaming of cloud as a core component of the digital economy.
Rising adoption brings rising complexity
As cloud adoption deepens, so do the challenges. Rising cloud spend, skills shortages, fragmented environments and heightened expectations around security and compliance are becoming common pressure points. “Across the continent, organisations are entering a more mature phase of cloud adoption,” says Joel Chacko, executive head of cloud services at Vodacom Business. “The focus is shifting towards optimisation, governance, sovereignty and measurable business value.”
Despite rising spend, few organisations have advanced FinOps practices – a gap that is pushing cloud users to prioritise optimisation and cost discipline. “The question facing executives today is no longer whether to adopt cloud,” says Jonathan Oaker, founder and CEO of CloudZA. “It’s how to do cloud well, and who they can trust to guide that journey.”
From adoption to cloud maturity
Chacko agrees, pointing out that “the difference lies in cloud maturity”.
“Mature organisations treat cloud as a business enabler that supports resilience, scalability, agility and innovation, while ensuring the environment is properly governed and managed over time.”
Oaker says the industry has moved well beyond the era of simple cloud migrations. “Cloud conversations today are centred on modernisation, optimisation and AI readiness,” he says. “Organisations want to understand how cloud investments translate into productivity gains, faster innovation and better business outcomes. That requires the right governance structures, skills and strategic partnerships.”
AI is accelerating the need for governance and readiness
Both Chacko and Oaker agree that AI is accelerating the need for cloud maturity. As organisations seek to harness AI capabilities, attention is increasingly turning to data quality, governance and the modernisation of legacy systems.
“The next phase of cloud transformation will be driven by data readiness,” says Chacko. “Organisations that understand their data, govern it effectively and align cloud investments to business outcomes will be best positioned to realise the value of AI.”
The role of trusted partners in simplifying complexity
For many organisations, this means finding partners that can simplify increasingly complex technology environments and provide integrated expertise across connectivity, cloud platforms, security and managed services.
Chacko argues that this requires a combination of cloud capability, managed services, security expertise and direct connectivity to major hyperscalers such as AWS, Microsoft Azure, Huawei Cloud and Google Cloud. Vodacom Business recently achieved Google Cloud Premier Partner status, expanding its ability to deliver managed cloud, collaboration, AI-enabled services and integrated connectivity. These developments reflect a broader industry trend: cloud partnerships are becoming more ecosystem-driven and more tightly linked to local execution.
“The objective is not technology for technology’s sake,” says Oaker. “It is about helping organisations become ready for what’s next, while reducing complexity and enabling faster, more informed business decisions.”
As cloud becomes more central to business strategy, organisations must reassess whether their current environments deliver the resilience, agility, and cost control they need. Key questions include:
- Is our cloud environment aligned to our long‑term business goals?
- Are we prepared for the governance, sovereignty and security expectations shaping the South African market?
- Do we have the right expertise/partner to manage hybrid and multi-cloud complexity?
It’s time to shift the focus from infrastructure to outcomes; from technology deployment to long-term business value.
- Read more articles by Vodacom Business on TechCentral
- This promoted content was paid for by the party concerned
