Sunday Times

Sky’s the limit for cloud computing in SA

SA strategica­lly located for serving Sub-Saharan Africa

- By ARTHUR GOLDSTUCK

The arrival of global data-centre leaders, in tandem with massive increases in data traffic due to Covid-19, has created unpreceden­ted demand for cloud computing services in SA.

This week, Teraco Data Environmen­ts announced that constructi­on had commenced on the largest single-site data centre in Africa, whichwill ultimately provide 16 halls with 1,000m² capacity for computer racks in each hall. The total size of the facility will be 50,000m².

This firmly positions Teraco among the so-called hyperscale data centres rolled out in SA in the past 18 months for the two world leaders in this sector, Microsoft Azure and Amazon Web Services (AWS).

Neither discloses capacity, but a hyperscale data centre is usually at least 3,000m² in size, housing at least 5,000 computer servers, according to a typical industry definition.

The new Teraco hyperscale data centre, known as JB4, is scheduled for completion in the first quarter of 2022 in Ekurhuleni, east of Johannesbu­rg.

It will be supplied with 38MW of power.

“South Africa is strategica­lly located at the tip of the African continent and, as a result, is positioned as a technology and data centre hub for Sub-Saharan Africa,” said Teraco CEO Jan Hnizdo in a statement on Tuesday.

“This is further underpinne­d by growing undersea and terrestria­l fibre connectivi­ty to the rest of

Africa. The continued increase of cloud adoption in Africa is also being enabled by investment­s in critical infrastruc­ture, including hyperscale data centre facilities such as JB4.

“This will enable global cloud clients to service not only the South African market but reach the rest of the Sub-Saharan African region as well.”

Sabelo Dlamini, a senior analyst for telecommun­ications at the Internatio­nal Data Corporatio­n, says the arrival of the “hyperscale­rs” has increased the adoption of cloud services, as well as addressing security concerns that some enterprise organisati­ons had with moving their workloads to cloud. “This has opened the space for other players in the cloud also to grow,” he says. “We have seen reports of a drastic increase in data traffic in South Africa from the internet exchange points due to Covid-19 lockdowns, and we are expecting to see this trend continuing.

“The rest of Sub-Saharan Africa is expected to follow suit, with several investment­s across the region in building data centres.” Hnizdo told Business Times this week the move by enterprise­s onto public cloud infrastruc­ture, such as that hosted by Azure, AWS, and Google, was complement­ary to Teraco, rather than representi­ng competitio­n.

“Most large enterprise­s, banks and retailers are adopting a hybrid cloud deployment strategy,” he said. “This means that components of their critical IT infrastruc­ture are being moved into public cloud, while large components still remain on-premises.”

Hnizdo said that owning data centre infrastruc­ture was no longer core to banks, retailers and other enterprise­s, and that such facilities were largely reaching their end of life. “Their critical onpremises systems are thus rather being deployed in ecosystemr­ich third party data centres. Here it’s far more economical and resilient for them to deploy as opposed to building their own new facilities.

“Large banks, retailers and enterprise­s in Europe, the US and Asia are no longer building their own data centre facilities as these are non-core.”

According to Dlamini, Teraco as a carrierneu­tral data centre has “a unique role” to play in the market.

“In addition to providing vendor-neutral data centre services, they are required to provide neutral co-location services, internet exchange points, and content delivery networks to support carriers, service providers, and content delivery organisati­ons.

“We are seeing increased growth in these services, which data centres owned by vendors or carriers are limited in providing.”

The Teraco announceme­nt comes less than a month after Japanese telecommun­ications giant NTT and its South African subsidiary Dimension Data announced that constructi­on had commenced on a Johannesbu­rg data centre that will provide 6,000m² of server space — and will be completed in early 2022.

Dimension Data already operates 11 data centres across Africa.

NTT said the expansion in Johannesbu­rg was part of the growth strategy of its Global Data Centers division, with more than 160 data centres in more than 20 countries.

“This demand for capacity is driven by local and internatio­nal clients’ strong need for robust co-location infrastruc­ture across Africa,” said NTT.

Grant Bodley, CEO of Dimension Data, said that Africa’s digital transforma­tion would be accelerate­d with the right infrastruc­ture investment­s.

“This partnershi­p, bolstering our already significan­t data centre footprint, comes at a time when demand for digital content, cloud services, new technologi­es such as the Internet of Things, mobile money and content delivery networks are on the rise,” he said.

Dlamini agrees that there is more room for growth.

“In addition to customers requiring localised play, there is still more room for improvemen­t in providing computing and storage requiremen­ts. With the increased adoption of artificial intelligen­ce and the Internet of Things, driven by digital transforma­tion, everything needs to be in the cloud, and the demand for computing and storage requiremen­ts will continue to increase.”

For this reason, said Hnizdo, Teraco was looking at a 15-year horizon. It was investing R4bn in the new project, but it would not stop there.

“Our investment in the facility is taken on a long-term investment horizon view. We see more public cloud players wanting to deploy in South Africa. We have great infrastruc­ture, and given the latency to Europe — 180 millisecon­ds, which is too long for real-time cloud interactio­n — this becomes the ideal base for public cloud providers to deploy their cloud platforms to service most of SubSaharan Africa.”

Meanwhile, one of the main global challenger­s to the dominant hyperscale providers, Oracle, is expected to deploy a data centre in SA in the coming year.

The announceme­nt was first made by company founder Larry Ellison during the Oracle OpenWorld conference last year, but no target date was given.

This week, during a Business Day Focus 4.0 webinar, Oracle SA senior sales cloud leader Shireen Pillay confirmed that the data centre was still on track, and likely to arrive next year.

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 ??  ?? An artist’s impression­s of the largest single-site data centre in Africa, which is being constructe­d in Ekurhuleni.
An artist’s impression­s of the largest single-site data centre in Africa, which is being constructe­d in Ekurhuleni.
 ??  ?? Teraco’s Jan Hnizdo foresees more data centres in SA.
Teraco’s Jan Hnizdo foresees more data centres in SA.

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