Ayotunde Coker

MD Rack Centre
African Colo markets’ Response to
Digital Transformation in the
Enterprise’?
The emergence of edge data centres:
Interconnecting with global hyperscale data centres’
July 24th 2018

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Contents

• The African Macro Context

• Nigeria Market Context

• Global Inter-connectivity

• Cloud Ecosystem For

enterprise Transformation

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• Conclusion

© Rack Centre: DCD Africa 2018 2

Africa GDP and Population: World Reference

World Population 2017 7.5b

Africa Population 1.25b 16.7%
Source: www.worldometers.com
The Africa
World GDP 2017 $77,988 T Prosperity
Gap
Africa GDP $2,273 T 2.9%
Source: International Monetary Fund World Economic Outlook (October 2016)

Metric Global Africa Comment

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Total Internet Users 4514 (3,340)m 454 (341)m 9.9 (9.3)% users are African.
Internet Penetration 54.4 (54)% 35.2 (29)% Some African countries
compare with global ratios.

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Africa Demographics: Median Ages

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Smartphone Adoption in Africa

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Sub-Sahara Africa Network Launches

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Source: GSMA 2017 Report

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Africa Trajectory From 2G to 4G

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Sovereign Data and Africa Regions

Regional Economic Communities Language Diversity

Number of Countries 54
Anglophone 20
Francophone 29
Lusophone 6

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© Rack Centre: DCD Africa 2018 8
Top 15 Countries in Africa (Nominal GDP)
Nominal GDP Population Nominal GDP / Internet Internet %
SN Country Language Facebook users
*Billion (USD) '000 Capita * (US $) Users Population
1 Nigeria English 376.3 195,875,000 1,994.24 98,391,456 50% 17,000,000

2 South Africa English 349.3 57,398,000 6,179.87 30,815,634 54% 16,000,000

3 Egypt English 237.0 99,375,000 2,500.77 49,231,493 50% 35,000,000

4 Algeria French 178.3 42,008,000 4,292.27 18,580,000 44% 19,000,000
5 Angola Portuguese 124.2 30,774,000 4,407.66 5,951,453 19% 3,800,000
6 Sudan English 119.0 41,511,000 1,428.00 11,816,570 28% 2,600,000
7 Morocco French 109.8 36,191,000 3,151.15 22,567,154 62% 15,000,000
8 Ethiopia English 80.9 107,535,000 872.84 16,437,811 15% 4,500,000
9 Kenya English 79.5 50,950,000 1,701.55 43,329,434 85% 7,000,000
10 Tanzania English 51.7 59,091,000 1,033.57 23,000,000 39% 6,100,000
11 Ghana English 47.0 29,463,000 1,663.19 10,110,000 34% 4,900,000

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12 DR Congo French 41.4 84,004,000 478.237 5,137,271 6% 2,100,000

13 Ivory Coast French 40.4 24,905,000 1,616.98 6,318,355 25% 3,800,000

14 Tunisia French 40.3 11,659,000 3,496.29 7,898,534 68% 6,400,000

English /
15 Cameroon 34.0 24,678,000 1,400.74 6,128,422 25% 2,700,000
French
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 Africa’s Comprehensive Connectivity
SN Name of Submarine cables Capacity
1 ACE 5.12 Tbit/s
2 Mainone 1.92 Tbit/s
3 SAT 3 340 Gbit/s
4 WACS 14.2 Tbit/s
5 Glo 1 2.5 Tbit/s

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www.submarinecablemap.com © Rack Centre: DCD Africa 2018 10
Africa’s Fibre Distribution Status

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Xalam Analytics – Africa Data

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Top 20 Internet Countries - 2016

8th
98.4 97.2
(2017) mil

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Top 10 Most Populated countries - 2016

• Population: 186 Million

• % Global: 2.55%
7th
• Media Age: 18 Years
• GDP: 481b USD

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http://www.internetworldstats.com/top20.htm
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Nigeria Cloud Computing and SMEs

• Number of SMEs: 20 million

approximately. 35m MSMEs.
Significant Professional SMEs.

• Higher than populations of

Netherlands, Belgium, combined

• Locally hosted and widely

available.

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• Reduce threshold of access to
computing.
• Transform efficiency and
economic impact.
© Rack Centre: DCD Africa 2018 15
Environmental and Macro Scale Drivers
Macro Driver
Sovereign and local data laws
Dense content development.
Nollywood, etc.
Geophysical location.
English language proficiency
Volume of hosting outside the
country.
Broadband penetration
Technology ecosystem actions.
Comments and Narrative
Oil and Gas, Telecommunications, Government and Financial data to
be held in country.
Nigerian Nollywood is estimated as higher than Hollywood and
trending to surpass Bollywood. Content serving moving to local carrier
neutral ecosystems.
Located midway from South Africa to Europe. Median access to
Western and Eastern hemispheres. High fibre connectivity enable
latency efficient global/local services integration.
Population speaks excellent English. Growth in business process
outsourcing, contact centre outsourcing. Increasing reputation for
business integrity.
Legislation and practical considerations driving relocation of data back
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to the country.
Drive to reach 30%. 4G LTE penetration to enable rapid broadband
growth.
Co-creation hubs, local talent growth (e.g. Andela, Facebook
investments), Government Technology and Innovation Council.
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Hyperscale Hub / Edge Architecture

Hyperscale Core Edge Delivery

Hyperscale Core
Hyperscale Core Centres

Global
Interconnect

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Local Edge
Location and Data
Store
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Edge Computing Developments

Emerging
Regional Scale /
Demand

Key Drivers

Low Latency
Sovereign Data
Computing
Law

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(AI, Trading
Enforcements
Systems)

© Rack Centre: DCD Africa 2018 18

Cloud Ecosystems for the Business Ecosystem

CDN

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© Rack Centre: DCD Africa 2018 19
Conclusions

Cloud growth in Sub-Sahara Africa is emerging and rapidly

developing to scale

Cloud anchor points emerging across the continent driving scale

and multi-location carrier neutral data centres

The comprehensive colocation and cloud ecosystems will cater to

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the scale spectrum, and the ‘sachet’ economies in Africa

© Rack Centre: DCD Africa 2018 20

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Ikeja, Lagos, Nigeria

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