Africaleadersit

January 2014

Africa’s high hopes:

Can IT leaders deliver on the strategic potential of emerging IT?
Selma Turki,
Business Development Executive, European Institutions
IBM Global technology Services

In collaboration with the IBM Center for CIO Leadership
© 2014 IBM Corporation

and the IBM Center for CIO Leadership

Africa’s IT and business climate is changing rapidly –
creating new opportunities and challenges
Africa’s booming technological and consumer revolution is underway:

$400B

The expected growth in
Africa’s consumer-facing
industries between now
and 20201

650M

Mobile subscribers
at the start of 2012,
making the African mobile
telephony market larger
than EU or US2

50M

African Facebook users
as of March 20133

Technology will play a key role in driving this transformation…

2

Source:
1
African Development Bank Group, The African Consumer Market, 2012.
2
World Bank and African Development Bank (AfDB) joint report, eTransform Africa: The Transformational Use of Information and Communication Technologies in Africa,
http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTINFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/0,,contentMDK:23262578~pagePK:210058~piPK:210062~theSitePK
3
Socialbakers.com, “Egypt Facebook Statistics”, http://www.punkinafrica.co.za/2013/07/11/african-facebook-users-infographic/


Are Africa’s IT leaders ready?
To find out, we surveyed 180 Africa-based IT decision makers
Respondent distribution
IT Spend

Countries
17%
South Africa

33%
$50K or more

Number of Employees
18%
1K+
employees

11%
Egypt

44%
50-249
employees

31%
Kenya
31%
Nigeria
67%
$10K to less
than $50K

3

11%
Morocco

Source: Setting the pace in Africa, an IBM global study involving 180 Africa-based IT leaders

38%
250-999
employees



Our research revealed a technology adoption gap,
but Pacesetters are bridging it

4

Source: Setting the pace in Africa, an IBM global study involving 180 Africa-based IT leaders



Pacesetters focus on three key areas to capitalize
on emerging technologies
The Pack

Strategic
business
leadership

Pacesetters

Pacesetters
Surpass the Pack

30%
70%
30%

Secure resources for
innovation

30%

Develop IT skills to meet
future business needs

80%

Incorporate new security
technology

30%

Communicate and
collaborate on security
concerns

30%

Provide professional security
skills development

6

Link IT investments to
business outcomes

Create a risk aware culture

Security

40%

Use metrics and scorecards
to assess IT risk

IT skills

Meet with our CEO/senior
execs regularly

30%



How can Africa-based IT leaders deliver on the strategic potential
of emerging IT? Questions to consider.
Assess strategic business
leadership competencies

What is your vision of how IT will drive the business forward?
How do you link investments to business outcomes?
How often do you meet with your peers in the business, including the CEO and
senior executives?
Which metrics and scorecards do you have in place?

Implement emerging technologies
and promote skills development

Are you driving IT skills development to transform the organization, beyond meeting
the basic needs of the business?
How do you proactively develop IT skills to meet future business needs?
Are you actively securing resources to pursue opportunities for technology-enabled
business innovation?

Tackle security maturity
and preparedness

How do you communicate and collaborate with your organization on
security concerns?
How do you deliver professional security skills development?
What process is in place to incorporate new security technology?

7



Why Cloud?

W h ile th e r e is n o o n e a n s w e r, c lo u d c o m p u tin g o ffe r s a n u m b e r o f
“ g a m e c h a n g in g ” e n a b le r s
C lo u d ’s B u s in e s s E n a b le r s
2

E x o g e n o u s F o rc e s

S o c ia l M e d ia

1
M o b ility

B ig D a ta

H y p e rC o n n e c tiv ity
S o u rc e : I B V A n a ly s is

 P r o v id e s l im it l e s s , c o s t e f f e c t iv e c o m p u t in g c a p a c it y
to s u p p o rt g ro w th

C ost
F le x ib ilit y

 S h i f t s f ix e d t o v a r i a b le c o s t
Pay as and when needed

6

B u s in e s s
S c a la b ilit y

3

 F a s t e r t im e t o m a r k e t
 S u p p o r t s in n o v a t iv e i d e a s

E c o -s y s te m
C o n n e c t iv it y

 N e w v a lu e n e t s
 P o t e n t ia l n e w
b u s in e s s e s

4
5

C o n t e x t - d r iv e n
V a r ia b ilit y

M a rk e t
A d a p t a b ilit y

M asked
C o m p le x it y

 E x p a n d p r o d u c t s o p h is t ic a t i o n
 S i m p le r f o r c it iz e n s / u s e r s

 U s e r d e f i n e d e x p e r ie n c e s
 I n c r e a s e s r e le v a n c e



The optimal cloud model varies based on the unique needs and goals of
an organization

Private Clouds

Hybrid

Public Clouds

Flexible business service delivery and consumption models
Evolve existing
infrastructure to
Cloud
Progressive
implementation roadmaps
using Cloud enablement
components

Flexible deployment
options through
pattern-based
approaches
Pre-integrated, simple to
deploy Cloud platforms
with built-in expertise

Immediate access to
a managed platform
with variable cost
Externally hosted Cloud
services platform with
enterprise QoS

Leverage Software as
a Service (SaaS)
Access 60+ public cloud
SaaS solutions

Common Cloud platform built an open standards reference model



Tunisie; Feuille de route 2018, une excellente plateforme



G o v e r n m e n ts c a n u s e in d u s tr y fr a m e w o r k s to s h a p e th e d e g r e e c lo u d
c a n b e u s e d to e n a b le th e ir b u s in e s s s tr a te g ie s
C lo u d E n a b le m e n t F r a m e w o r k

T ra n s fo rm
Im p ro v e

V a lu e C h a in

C re a te

D is r u p t o r s

In n o v a t o r s

O p t im iz e r s

Enhance

E x te n d
In v e n t
C u s to m e r V a lu e P r o p o s itio n

D i s r u p t o r s c r e a t e r a d ic a lly d if f e r e n t v a lu e
p r o p o s it io n s , g e n e r a t e n e w c u s t o m e r n e e d s
a n d s e g m e n ts a n d e v e n n e w e c o -s y s te m s
I n n o v a t o r s s ig n if ic a n t ly e x t e n d c u s t o m e r
v a lu e p r o p o s it io n s r e s u lt in g in n e w r e v e n u e
s t r e a m s a n d t r a n s f o r m t h e ir r o le w it h in t h e ir
in d u s t r y o r e n t e r a d if f e r e n t in d u s t r y
e c o s y s te m
O p t i m i z e r s u s e t h e C lo u d t o in c r e m e n t a lly
e n h a n c e t h e ir c u s t o m e r v a lu e p r o p o s it io n s
w h ile im p r o v in g t h e ir o r g a n iz a t io n ’s
e f f ic ie n c y



T o m a x im iz e th e v a lu e o f th e c lo u d G o v e r n m e n ts w ill n e e d to th in k
d iffe r e n tly a b o u t c lo u d w o r k lo a d s , c itiz e n s e r v ic e s a n d in n o v a tio n
C lo u d E n a b le m e n t F r a m e w o r k
C re a te

In n o v a t o r s

T ra n s fo rm
Im p ro v e

V a lu e C h a in

M a n y g o v e r n m e n t c lo u d p r o je c t s a r e
f o c u s e d o n c o n s o lid a t io n , c o lla b o r a t io n
( i. e . e m a il) , a n d w e b s it e o p e r a t io n s

D is r u p t o r s

T o t a k e f u ll a d v a n t a g e o f t h e c lo u d ’s
p r o m is e , c o r e s e r v ic e s m u s t b e p la c e d in it
N e w a d o p t io n s t r a t e g ie s s h o u ld b e
c o n s id e r e d :

O p t im iz e r s
•
Enhance

E x te n d
In v e n t
C itiz e n V a lu e P r o p o s itio n

S t a t ee s a s C SS P t o m u n ic ip a lit ie s a nn d a g e n c ie s
m
ip

•

C lo uu d c o lla b o r a t io n w it h t h e p r iv a t e s e c t o r
io

•

E n tt r e p r e n e u r ia l b u s in e s ss m a n d a t e s w it h in t h e
s t a t e ’s c u ltlt u rr e



Organizations must balance optimization with innovation to enable
new product and service models.

Innovation

Optimization
Next generation
of hybrid architectures

Innovation drives need
for continuous IT
optimization
1

CIO1

New economics of IT
fuels investments in
innovation

CMO2

Chief information officer (CIO); 2Chief marketing officer (CMO)


K e y C o n s id e r a t io n : W h a t w o r k lo a d s t o m o v e to c lo u d a n d w h a t
a p p lic a tio n d e liv e r y m o d e l is b e s t fo r th a t w o r k lo a d ?
T ra d itio n a l
O n -P re m is e s
A p p lic a t io n s
D a ta
R u n t im e
M id d le w a r e
O /S
V ir t u a liz a t io n
S e rve rs
S to ra g e
N e t w o r k in g

In fra s tru c tu re
a s a S e rv ic e
D a ta
R u n t im e
M id d le w a r e
O /S
S e rve rs
S to ra g e
N e t w o r k in g

P la tfo rm
a s a S e rv ic e
D a ta
R u n t im e
M id d le w a r e
O /S
S e rve rs
S to ra g e
N e t w o r k in g

S o ftw a re
a s a S e rv ic e
D a ta
R u n t im e
M id d le w a r e
O /S
S e rve rs
S to ra g e
N e t w o r k in g

S t a n d a r d iz a t io n ; O P E X s a v in g s ; f a s t e r t im e t o v a lu e
V e n d o r M a n a g e s in C l o u d

C lie n t M a n a g e s



 LuxCloud, the fourth pillar of Luxembourg's DCL Group (EuroDNS, Datacenter Luxembourg,
VoipGate), was founded in response to a fast growing software as a service (SaaS) market.
The emergence of more and more SaaS applications has resulted in high demand from
traditional software resellers and small and medium sized ISPs for tools to automate the
online sale of hosted applications. LuxCloud solutions enable resellers, software distributors
and service providers to offer SMEs the applications and services available on their
platforms, such as the hosting applications; e-mail and collaboration; business processes;
and packages for infrastructure.
 When IBM and LuxCloud met, the two companies instantly saw that their offerings
complemented one another. IBM is helping clients excel in cloud computing, providing
secure and reliable software software as service (SaaS), platform as a service (PaaS) and
infrastructure as a service (IaaS). These services can be offered on a "pay-as-you-go" basis
 IBM and LuxCloud now offer a cloud environment installed on Luxembourg soil, which
ensures resilience and the total availability of data. The shared, private cloud model enables
pooling of resources while still guaranteeing the confidentiality of data – an essential
criterion for the finance sector in Luxembourg, which is subject to extremely strict regulation



Cloud in action: Drivewyze

Eliminates costly IT infrastructure with an IBM SmartCloud solution

The need:

The solution:

• Drivewyze needed a
cost-effective, managed
infrastructure that could scale
to meet a rapid increase in
customer demand.

• The IBM SmartCloud
Enterprise+ solution provides
a flexible, fully managed
environment that reduces
administrative workload and
enables IT resources to focus
on core applications.

“Choosing to partner with IBM was a fairly easy decision
and the advantages of leveraging IBM resources to help
manage our infrastructure was a big deciding factor.”

Benefits:
• Increases customer
satisfaction with nearreal-time scaling to
more swiftly meet growthin-market demand
• Reins in IT costs with
• a fully managed model
that eliminates the need
to acquire up to six IT
resources for support
• Capitalizes on a securityrich, highly available
IBM architecture that
establishes credibility with
risk-averse customers

Brian Mofford, vice president, Drivewyze


Cloud in action: TP Vision

Reducing costs by 40 percent with an IBM SmartCloud solution

The need:
• As TP Vision grew, it was
challenged to scale its
traditional hardware
infrastructure to meet
customer demands efficiently
and cost effectively.

The solution:
• TP Vision moved its Smart
TV solution’s development,
testing and hosting
operations from a traditional
hardware architecture to an
IBM SmartCloud Enterprise+
environment.

“TP Vision was looking for a solution that would allow us
to support growing customer demand, and IBM was the
partner to do that with. The IBM SmartCloud infrastructure
fits perfectly with our vision.”

Benefits:
• Reduces operating costs
with a usage-based pricing
model, translating into
around a 40 percent
decrease in cost per TV
• Increases customer
satisfaction with near-realtime scaling to meet
demand as well as cyclical
and unplanned spikes
in usage
• Eliminates the need to
acquire and set up
hardware, reducing
provisioning time from
up to two months to
minutes

Remco Meeuwesen, director operations, Smart TV


Cloud in Action: Energy and Utility
•An energy & utility company in India
•The Client :
•Energy and utility company based
out of India.
• They build, own and operate
renewable energy power plants to
generate clean energy through
renewable sources namely wind;
solar; bio mass and hydro
•As a thriving mid-size organization
in an emerging industry, they expect
to grow their business 4 times over
the next 5 years

•In Collaboration With:

•The Need :
•To help support its growth
needed a partner that could
provide IT infrastructure that is
flexible and scalable with
growing business demands.
•As a newer organization, they
wanted to minimize up-front IT
capital expenditures so that they
could focus investments on
business growth.
•They sought a partner that could
provide business insights and be
a true partner in business growth

•Benefits :
•

Flexibility and scalability of
IT infrastructure to support
4x business growth over 5
years

•

Fast provisioning – minutes
versus hours/days

•

Low capital expense

•

Ability to harness business
insights and skills from a
trusted partner

•The Solution:
•10-year strategic outsourcing
partnership including a SoftLayer
cloud solution. The SoftLayer
solution enabled easy integration
of cloud into the deal with its
easy to provision components.


Using the IBM SmartCloud Enterprise for mission critical applications
Development & Test

Batch Processing

Web Applications

 A public broadcasting
company is moving
from tape-based
assets to digital
formats, stretching IT
beyond capacity.

 A university is using the
IBM SmartCloud
Enterprise and
CloudBroker software to
develop new antibiotics
to fight disease.

 An ISV created a
collaborative website for
a government
sponsored “innovation
challenge” on improving
education.

 The cloud solution
allows virtual
machines to be
provisioned in hours
rather than days
providing a rapid
response to changing
testing and storage
demands.

 Researchers were able
to analyze massive
amounts of data within
two weeks, a task that
would have taken
several months without
cloud.

 They needed to quickly
develop and test the
applications/ website,
as well as host and run
the back-end
infrastructure to support
the website.



 Wuxi Province
 China Railway
 Mobily
 Bharti Airtel
 MOD NZ
 LuxCloud
 Defense Ministry Asia Europe



© Copyright IBM Corporation 2014
IBM Corporation
New Orchard Road
Armonk, NY 10504
Produced in the United States of America
January 2014
IBM, the IBM logo and ibm.com are trademarks of International
Business Machines Corporation in the United States, other
countries or both. If these and other IBM trademarked terms are
marked on their first occurrence in this information with a
trademark symbol (® or TM), these symbols indicate U.S.
registered or common law trademarks owned by IBM
at the time this information was published. Such trademarks may
also be registered or common law trademarks in other countries.
Other product, company or service names may be trademarks or
service marks of others. A current list of IBM trademarks is
available on the web at “Copyright and trademark information” at
ibm.com/legal/copytrade.shtml

CIP03069-USEN-00
23



IT and line of business executives are under tremendous pressure to
achieve the balance and drive business growth.

Pressures on IT executives:

Pressures on line-of-business (LOB)
executives:

• Provide an agile, cost-effective
infrastructure that can enable more
nimble business processes and models
with flexible, scalable operations
• Keep the infrastructure up and running,
mitigating disruptions to the business
• Control costs and have greater
transparency to the budgetary and
operational impacts of decisions
• Mitigate financial, operational and
customer marketplace risk
• Demonstrate how their decisions
deliver value back to the business

•
•
•
•
•

Drive innovation and business value
Gain more competitive advantage
Quickly adapt to market changes
Increase business agility and speed
Rapidly deploy foundation IT



IT executives are facing inefficiencies in their traditional data centers,
making it difficult for them to meet business demands.
Common challenges with traditional server environments include:
• Low utilization of servers
• Having to dedicate a substantial number of servers
within a typical IT environment to handle peak loads
• Finding instant access to available IT infrastructure
resources (software packages and platforms) to meet
unexpected loads from new business initiatives
• Extensive, arduous labor-intensive process to procure,
build and maintain servers
• Long deployment times
• Mismatched development and test and
production environments
• High operational and cost inefficiencies due to lack
of standardization



Line-of-business leaders are also facing a host of challenges, making
it difficult for them to meet business demands.
Common challenges that LOB leaders face:
• IT organization unable to fulfill requirements
• Testing applications and putting them into production
tending to be time- and labor-consuming, and costly
• Business processes inhibiting customer interaction
• Lack of access to current and key data affecting
decision making



Cloud computing can help IT executives transform their
infrastructure to support business growth.
: Investing in cloud can help you
• Reduce operational, infrastructure and startup costs
• Speed time to market through increased efficiency
and automation
• Scale operations to meet market dynamics
and business strategy
• Reduce complexities in managing
virtualized environments
• Improve security of business and infrastructure functions
• Eliminate downtime and deliver on application servicelevel agreements service-level agreements (SLAs)



Cloud computing can help LOB executives transform business, reach
new customers, create new markets and address industry imperatives.
LOB executives are charged with:
• Bringing new quality products and services to market fast
• Fostering customer intimacy and interaction to create a
customer-focused enterprise
• Entering new markets and industries
• Leveraging the web, social media and other technologies
to reach new customers
• Mining insights from data that feeds innovation
• Driving innovation while managing cost
• Addressing imperatives in industries such as banking,
chemicals and petroleum, energy and utilities
and healthcare



To seize the opportunities offered by cloud, you need an enterpriseclass, production-ready managed cloud infrastructure.
You need a cloud administered by a technology company that can provide:
• Consistent availability
• Enterprise-class security
• Full management of the cloud infrastructure
and workloads
• Scalable access to applications, resources and services
• Choice of operating systems and configurations
• Service-level agreements that extend to the virtual
machine level
… so that your IT department can focus on new implementations
rather than just maintaining the existing infrastructure.



Uniquely able to accelerate value by leveraging all layers of cloud,
a standards-based approach and deep skills.
IBM can help you

Think it

Build it

Cloud experts that helps
you to strategize how to
use cloud to drive not
just savings but
revenue
and growth

Cloud technologies
whether you want to
build your own private
or hybrid cloud,
smarter cloud-based
products and services,
and data analytics in
the cloud

Tap into it
IBM SmartCloud®
offerings: The instant
way to tap into
analytics, softwareas-a-service (SaaS)
business applications
and hosting in
the cloud



Expanding footprints and reach: extending value across the globe.
Amsterdam,
The Netherlands
Ehningen,
Germany
Winterthur,
Switzerland
Seattle, U.S.A
San Jose, U.S.A
Boulder, U.S.A

Toronto, Canada
Washington, DC, U.S.A
Raleigh, U.S.A

Montpellier, France
Barcelona, Spain

Tokyo,
Japan

Dallas(6), U.S.A
Houston(2), U.S.A
Singapore
)Enterprise, SoftLayer(

Sao Paulo, Brazil

Legends
SmartCloud Enterprise and SmartCloud
Enterprise+ data centers
SmartCloud Enterprise only data center location
SoftLayer data center location
SmartCloud Enterprise+ only data center location

Sydney, Australia



Look for Open standards, no vendor lock-in; The OpenStack Foundation is Open for
Business
OpenStack is a global collaboration of developers & cloud computing technologists
working to produce an ubiquitous Infrastructure as a Service (IaaS) open source
cloud computing platform for public & private clouds.
Platinum Sponsors

Gold Sponsors

APR
2012

30 UGs

47 UGs

JAN
2013

As of

As of

Exponential growth in participation

2600 5600+ Individuals
Individuals

OpenStack Compute (core)

OpenStack Image Service (shared service)

OpenStack Object Store (core)

OpenStack Identity (shared service)

Provision and manage large networks of virtual machines
Create petabytes of secure, reliable storage using standard HW

OpenStack Dashboard (core)

Enables administrators and users to access & provision cloudbased resources through a self-service portal.

Catalog and manage massive libraries of server images

Unified authentication across all OpenStack projects and
integrates with existing authentication systems.

Code available under Apache 2.0 license. Design tenets – scale &
elasticity, share nothing & distribute everything

http://openstack.org


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