Synopsis

The report focuses on the Datacenter infrastructure market in Nigeria. The insights in the report highlight the emerging Datacenter trends in the country, drivers and inhibitors to investments and general adoption trends by enterprises across key verticals. The report is an expose on the current state of the Datacenter infrastructure and concludes by predicting future market trends based on user behaviour and market forces.

Executive Summary

In 2015, ICT spend in Nigeria was about $12.7 billion and is expected to grow at compound annual growth rate (CAGR) of about 7% through to 2020.

The ICT landscape is in the infrastructure-build phase with significant investments in hardware and software. The services market is nascent, however it is expected to grow in the long term.

ICT in Nigeria is growing in leaps and bounds as individuals and organizations are increasingly leveraging ICT to address daily needs of communication, entertainment, education, financial transactions, and security and so on. As such, for individuals, demand for improved connectivity has increased and for businesses, demand for secured connectivity to access enterprise applications or services to improve efficiency of business process, reduce operating cost and increase overall profitability is driving ICT growth.

One ICT infrastructure that has recently driven both local and international investments in Nigeria is the Datacenter. Datacenters in Nigeria have transformed over the years and have grown to become critical IT infrastructures to enable business profitability. Datacenter infrastructure growth in the country has been driven by increased ICT market maturity, in 2015 for example, Datacenter spend on hardware accounted for about 66% of total IT hardware spend and also in the same year, investments in infrastructure software accounted for about 45% of total IT software spend.

However, growth in Datacenter has been limited to some verticals i.e., telecoms and IT, banking, financial services and insurance (BSFI) and Oil & Gas. There has been a sustained growth in demand for hosting and collocation services, business continuity and disaster recovery (BC/DR) and cloud service as organizations implement latest technologies to drive operations. In 2015, total Datacenter IT spend was about $930 million i.e., servers $65 million, storage $40 million, networking equipment $700 million and infrastructure software $125m. A compound annual growth rate of 8% is expected through 2020. Leading vendors include Cisco, HP, IBM, EMC, NetApp and so on.

Poor connectivity, lack of steady power supply, low availability of IT skill set, depreciation of the Naira (N) are all major inhibitors to the growth of Datacenters in Nigeria. In the short to medium term, we expect continued investment into Datacenter roll out projects, however in the longer term, the need to run reliable and efficient Datacenters will become critical and will take centre stage.

Contents 1

• DATACENTER MARKET MARKET OVERVIEW 4 2
• DATACENTER MARKET TRENDS IN NIGERIA 5 2.1
• DATACENTER AVAILABILTY AND TRENDS 5 2.2
• DATACENTER MARKET DRIVERS AND INHIBITORS 7 3
• FUTURE TRENDS 11 4
• CONCLUSIONS 12

APPENDICES 14

• APPENDIX 1: METHODOLOGY 14
• APPENDIX 2: ABBREVIATIONS 14

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