For years, businesses all over the world have been dealing with the issue of scalability. As most operations have moved online and rising volumes of data are being handled by companies, the need for digital space is constantly growing. Companies based in Kenya are increasingly joining in the ranks of millions of enterprises and organisation all over Africa and the globe that has turned to a simple solution for meeting these needs: cloud computing.

Kenya cloud spending up by 38% in 2020 and 68% in 2021

As Capital FM reports, the World Wide Worx recently released its study entitled “Africa in the Cloud 2020”. The report looked across eight African countries to collect data on cloud usage and identify trends. Its findings noted a clear increase in spending on cloud computing services across all countries. This seems to have been fuelled by the increased presence of hyper-scale data centres across Africa. Kenya, in particular, has seen a rise in cloud spending by 38% in 2020 and is expected to see a further increase by 68% in 2021. Across the countries surveyed, South Africa retains the lead at a whopping 82% of cloud spending increase. This falls in line with wider reporting that the economy in Kenya is experiencing growth, perhaps due to its exploration into technology.

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The study also identifies interesting trends in cloud adoption in the business sector, as the same source reports. It has found that companies that undertook a digital transformation of their operation saw an impressive 71% growth in terms of productivity, compared to a mere 21% increase for businesses that did not do the same. The main drivers between cloud adoption were efficiency for 63% of respondents, operational flexibility for 53% and an effort to provide better customer service for 45%. Cutting-edge tech developments like big data, the Internet of Things and artificial intelligence, also play a role as companies prepare for the coming three years, with 80% of businesses noting that these areas were a significant area going forward.

Cloud integration: banking leads, several sectors follow suit

According to the report, manufacturing was the sector that reported the second-highest spending on cloud computing at a whopping 46%. Banking was the top sector that led to cloud adoption spending at a rate of 53%. The trend of banks relying on cloud computing to streamline their services has also been noted by Deloitte on a global scale. As Deloitte explains, it expects “the bank of 2030” to look tremendously different than the banks we are used to today, thanks in part to the cloud. From 2016 to 2018, Deloitte documented a threefold rise in the number of companies turning to the cloud, and the trend has only accelerated in the last 18 months.

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Besides banking, cloud computing has offered the option for businesses across several industries to be able to scale upon demand. These do not only include the finance and technology sector but also range over to the entertainment industry. The example of online casinos showcases how the online gambling industry can benefit from the use of cloud computing services. As the online casino industry has undergone a popularity boom in recent years, and technology has continuously added options to its online library. These range from classics such as roulette and blackjack to popular slot games, but they also recently included tech-heavy live casino games that rely on live streaming to offer an authentic casino vibe. By leveraging cloud storage, online casinos can smoothly scale up as they are poised to add more options online, especially across live casino games.

Entertainment is not the only sector benefiting from cloud capabilities. The same holds for online retail, as businesses continue to add more options for online shoppers. While Amazon started as an online marketplace for books, it soon expanded to include electronics, clothing, food, and even furniture. Its recent partnership with Whole Foods will only serve to amplify its reach and it has created its very own cloud service, Amazon AWS, to serve rising cloud computing needs. Supermarkets like Tesco or Whole Foods across the globe have also seen a recent surge in customers ordering online, which will inevitably lead to more cloud integration across the sector.

It only remains to be seen which company will claim the largest market share in terms of providing cloud services, as more big names have entered the race – including Google and Microsoft.

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