Why the cloud is the new frontier for small local enterprises

Kenya has ambitious plans to diversify its economies through digitisation. [iStockphoto]

Her firm has helped several companies onboard cloud-based solutions.

"In Kenya, this growth in cloud computing is being witnessed in the manufacturing and financial sectors. However, there is a need to address the skills gap so that more companies can build capabilities for the migration," she says.

However, Manji-Gidoomal says this growth could be inhibited by some business players who are reluctant to adopt cloud technology by clinging to more traditional systems.

"You have a more traditional market where someone will say, 'look, I have my own data centre or two where I have invested time and money and 30 people manning them. I don't need to be on the cloud.' However, I tell them to just look at recent security scares in some big firms in Kenya where data was almost compromised. It might take some time before the thinking changes," she says.

A report released on the sidelines of an African meeting for startups held last month in Johannesburg, South Africa, states that Kenya has the potential to unlock Sh1.4 trillion of additional economic value over the next decade, or 0.56 per cent of Kenya's cumulative GDP, by accelerating adoption of cloud computing.

According to this report, Kenya added 0.08 per cent to the GDP, amounting to Sh12.9 billion of value in 2021.

"Over 91 per cent of this impact can be attributed to the national productivity gains or the so-called "spillover effects" on the economy.

The remaining nine per cent was driven by cloud spending from both public and private organisations in the sub-Saharan region," says the report.

An increase of one per cent in cloud adoption by Kenyan, organisations added the report, will yield an average GDP increase of 0.03 per cent above the region's average of 0.02 per cent but behind the regional leader, South Africa, where one per cent of cloud adoption yields 0.06 per cent GDP increase.

Amrote Abdella, the general manager for sub-Saharan Africa at AWS, said the report underscores the immense potential for sub-Saharan Africa to harness cloud computing and expedite economic growth by increasing the current average cloud penetration with the region looking to unlock additional economic value.

"With the current forecast, the economic impact of the cloud is undeniable and is poised as a key catalyst for economic prosperity. As such, it is important for businesses in the region to invest in cloud computing technology to stay competitive and boost their economic potential," added Ms Abdella.

Kenya has ambitious plans to diversify its economies through digitisation, with 26 per cent of organisations in the country adopting cloud computing in 2021, showcasing the country's potential in improving cloud penetration.