South Africa’s three top cloud providers — and one companies avoid

MyBroadband’s business technology survey revealed that Google Cloud, Microsoft Azure, and AWS are the top cloud providers, while most companies avoid Huawei Cloud.

The survey was completed by 783 respondents. Only responses from executives and managers who decide which ICT products their companies buy were considered.

These business ICT decision-makers were asked which cloud services provider they trust the most and which they would select for their company.

Google Cloud was the preferred provider, with 41% of the vote. Since the start of the year, Google’s rating has increased by two percentage points.

Increased awareness of Google Cloud was expected as the company launched its Johannesburg cloud region in South Africa in January.

The launch of the Johannesburg region was met with enthusiasm by existing Google Cloud customers across Africa.

Niral Patel, director of Google Cloud Africa, said their point of presence in Johannesburg will accelerate the African tech ecosystem.

“It will provide organizations with the resources they need to scale, innovate, and compete in the global marketplace,” he said.

Microsoft Azure ranked second, with 35% of people selecting it, followed by Amazon Web Services (AWS) with 21%.

These two cloud providers’ ratings were similar to the start of the year, which shows they maintained their brand awareness in the market.

Huawei Cloud was the biggest loser this year. Its rating has halved over the last six months, which points to reputation problems.

The surveys’ feedback shows that companies would avoid selecting Huawei Cloud over its three main competitors.

Huawei Cloud has failed to convince South African companies that it is a viable alternative to Google Cloud, Microsoft Azure, and AWS.

The chart below shows the most trusted cloud providers in South Africa that IT decision-makers would select for their businesses.

The battle for cloud services in South Africa

The world’s top technology companies are pumping billions into South Africa’s cloud and data centre market because of its tremendous potential.

Africa Analysis predicts that South Africa’s cloud market will grow at a compound annual growth rate (CAGR) of over 26% between 2023 and 2028, expanding to R113 billion.

This is driven predominantly by many businesses and government institutions implementing digital transformation to become cloud-first organisations.

Supporting this growth is the high level of investment made by the global cloud hyperscalers in South Africa.

However, South Africa’s potential goes far beyond its borders. The country serves as a data centre and cloud hub for many other African countries.

Africa’s internet economy is estimated to reach $180 billion by 2025, accounting for 5.2% of the continent’s gross domestic product (GDP).

Microsoft, its partners, and cloud-using customers are expected to generate around $45.4 billion in new revenues through cloud services in Africa by 2026.

It is further estimated that Microsoft and its partner ecosystem will spend about $3.7 billion in Africa for services and products over the next three years.

A large chunk of this money would flow into South Africa’s data centre and cloud market, with companies like Google Cloud, Microsoft Azure, and AWS driving this growth.

Google has committed $1 billion (R18 billion) to boost Africa’s digital transformation. Microsoft is investing R1.3 billion to unlock inclusive growth in South Africa.

Amazon’s planned investment in South Africa amounts to R46 billion, which is closely associated with Amazon Web Services.

With billions flowing into Africa, and South Africa specifically, it is easy to see why there is such a battle for the hearts and minds of South African companies.

MyBroadband’s latest survey shows that these significant investments are paying off for Google, Microsoft, and Amazon.