Why African tech Companies are Moving Away from On-premise Data Centres?

Picture of Editor - CyberMedia Research

Editor - CyberMedia Research

IT infrastructure, specifically cloud migration, has become one of the key components of any modern business. Up till recently, cloud migration was performed by companies via either Software-as-a-Service (SaaS) or Platform-as-a-Service (PaaS) models. However, startups are beginning to change this ecosystem.

In Africa, tech companies across the startup segment are now looking at making the Infrastructure-as-a-Service (IaaS) model the go-to option for setting up organizational cloud tech. This is when a cloud tech vendor hosts the entire data centre infrastructure as part of the service, and the receiver can simply use the cloud services using the internet.

Earlier the IaaS model was met with scepticism from most large businesses. But with the success it has received in recent years, it is quite clear that startups don’t want to commit to large infrastructural changes but want to achieve the competitive edge provided by cloud migration.

The IaaS Model Provides Certain Key Advantages

Primarily, it allows a business to remain rooted in its particular market segment and not have to deal with IT infrastructure development as one of its core functions. This also means reduced recruitment needs, lower attrition levels, and ultimately more savings.

It is also the more secure option for most startups. Especially in a continent such as Africa, which lacks robust cyber-security protocols, the IaaS model provides the best possible data security while skipping any on-site needs. The process is also highly scalable and can grow along with the organization.

Not having on-site infrastructure means the entire data resources of the organization are disaster-proof. And since such services are usually provided by some of the biggest names, Amazon, Google, etc.; multiple backups of the data are always available.

Signalling a Global Change

The SaaS and PaaS models of cloud infrastructure are still popular solutions globally. But this has also created an unfair advantage for startups, as not every business can afford to host the costs related to their own data centres. 

As per experts, there is a major shift coming in this segment. The changes are already visible in the African startup segment, and the trend of having an IaaS model of cloud tech is set to become a major phenomenon in other markets as well.