Data center services are a strategic focus area for telcos in sub-Saharan Africa

Telecommunications companies (telcos) in the sub-Saharan Africa region, which have traditionally focused on voice and data connectivity, are increasingly looking to expand their enterprise services portfolio and transition towards offering IT services according to GlobalData, a recognized leader in providing business information and analytics.

The company’s latest report states that data centers are a key pillar for telcos to provide IT services such as colocation, managed services and cloud services.

Mak Rahnama, Senior Technology Analyst for GlobalData, explains: “Key drivers in the adoption of data center services in sub-Saharan Africa include increasing fixed broadband coverage and a growing number of submarine cables providing improved wholesale and international connectivity. This has led to the data center competitive landscape developing significantly over the past few years, as in addition to telcos and dedicated data center providers, governments in the region are also launching data centers and selling these services to enterprises.

“However, enterprises have limited familiarity with data center services, making it a key barrier to adoption. Telcos need to address this in their go-to-market strategies by launching targeted awareness campaigns to inform and educate the market on data center services.”

One commercial strategy deployed by providers of data center services in the region involves using technical features of the data center as the main way to differentiate service offerings. These include access to a reliable power supply, a feature that is particularly important in a region plagued by unreliable national electricity grids.

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