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Amazon Web Services to Open Data Centres in South Africa

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Amazon Web Services

By Dipo Olowookere

In the first half of 2020, Amazon Web Services will open an infrastructure region in South Africa that will consist of three Availability Zones.

Currently, AWS provides 55 Availability Zones across 19 infrastructure regions worldwide, with another 12 Availability Zones across four AWS Regions in Bahrain, Hong Kong SAR, Sweden, and a second GovCloud Region in the U.S. expected to come online in the coming months. For more information on AWS’s global infrastructure, go to: https://aws.amazon.com/about-aws/global-infrastructure/.

“Having built the original version of Amazon EC2 in our Cape Town development center 14 years ago, and with thousands of African companies using AWS for years, we’ve been able to witness first-hand the technical talent and potential in Africa,” said Andy Jassy, CEO, Amazon Web Services, Inc. “Technology has the opportunity to transform lives and economies across Africa and we’re excited about AWS and the Cloud being a meaningful part of that transformation.”

The new region is the latest in a series of AWS investments in South Africa. In 2004, Amazon opened a development centre in Cape Town that focuses on building pioneering networking technologies, next generation software for customer support, and the technology behind Amazon EC2. AWS has also built a number of local teams including account managers, customer services representatives, partner managers, solutions architects, and more to help customers of all sizes as they move to the cloud.

In 2015, AWS opened an office in Johannesburg, and in 2017 brought the Amazon Global Network to Africa through AWS Direct Connect. In May of 2018, AWS continued its investment in South Africa, launching infrastructure points of presence in Cape Town and Johannesburg, bringing Amazon CloudFront, Amazon Route 53, AWS Shield, and AWS WAF to the continent and adding to the 138 points of presence AWS has around the world.

The addition of the AWS Africa (Cape Town) Region will enable organizations to provide lower latency to end users across Sub-Saharan Africa and will enable more African organizations to leverage advanced technologies such as Artificial Intelligence, Machine Learning, Internet of Things (IoT), mobile services, and more to drive innovation. Local AWS customers will also be able to store their data in South Africa with the assurance that their content will not move without consent, while those looking to comply with the upcoming Protection of Personal Information Act (POPIA) will have access to secure infrastructure that meets the most rigorous international compliance standards.

African organizations already moving to AWS

Organizations across the African continent have been increasingly moving their applications to AWS. Enterprises such as Absa, Investec, MedScheme, MiX Telematics, Old Mutual, Pick n Pay, Standard Bank, Travelstart, and many more are using AWS to drive cost savings, accelerate innovation, and speed up time-to-market. African startups choosing AWS as the foundation for their businesses include Aerobotics, Apex Innovation, Asoriba, BusinessOptics, ColonyHQ, Custos Media, DPO PayGate, EMS Invirotel, Entersekt, graylink, HealthQ, JourneyApps, JUMO, Luno, Mukuru, NicheStreem, Parcelninja, Simfy Africa, Zanibal, Zapper, and Zoona. The African Public Sector, including researchers, museums, and health sciences organizations, are also choosing AWS. For example, The National Museums of Kenya (NMK), is using AWS to digitize their most precious and valuable artifacts, which make up one of the largest collections of archaeology and paleontology in the world.

Absa, one of the largest and most innovative banks in Africa, welcomes the news of an AWS Region. “AWS has been Absa’s primary cloud provider for the past three years. The reduction in latencies that will accompany their expansion to South Africa will further enable us to scale our cloud consumption,” said Andy Baker, CIO at Absa. “We no longer deploy bespoke hardware, SAN storage, or high-cost proprietary database solutions. Instead, our new tech stack utilizes low cost, fully automated, logically partitioned, open source software, with real-time security and application monitoring. AWS’s track record of delivering enterprise ready and South African regulator-approved services to Absa has given us confidence to deploy services aimed at further reducing our operational costs and improving our cyber risk profile.”

Another well-known South African enterprise using AWS for their mission critical workloads is MiX Telematics, a global provider of fleet management, driver safety, and vehicle tracking services and solutions. “We started working with AWS in 2015 and decided to go ‘all-in,’ including migrating our full fleet and mobile asset management stack to AWS and shutting down our on-premises data centres over a period of 18 months,” said Catherine Lewis, Executive VP (Technology) at MiX Telematics. “Through moving to AWS, we have been able to speed up innovation and increase system reliability, while reducing the time to get new ideas into production from months to minutes. While we already use AWS globally in Ireland, Australia, and the U.S., an AWS infrastructure region in Africa will accelerate our innovation even further, improve our service, and ultimately reduce the costs of supporting our base of over 700,000 vehicles. We are also in the process of migrating over 7,000 costly Microsoft SQL Server databases to Amazon Aurora and Amazon RDS PostgreSQL, and adopting new technologies, such as AWS’s Artificial Intelligence and Machine Learning services, to help more intelligently manage vehicle efficiency, improve driver safety, and ultimately enable us to drive greater value for our customers.”

Pick n Pay is one of the largest retailers in Africa, with over 80,000 staff across 1,560 stores, and is moving their eCommerce and data analytics systems to AWS. “By moving our eCommerce and mobile customer application to AWS, from our previous managed services model, we estimate we have saved significantly on our total cost of ownership over the past year,” said Chris Shortt, General Manager of Information Services, Pick n Pay. “The relationship, performance, reliability, and cost savings has been positive and has led us to move our SAP Business Warehouse systems to certified AWS X1 instances. Selecting AWS highlights the differentiated, cloud-first thinking they bring to us as opposed to more traditional, and less agile, service providers. The scale, security, speed, and customer focused nature of AWS is something we’ve become accustomed to and look forward to expanding our use of their services as the South African Region becomes a reality.”

In the startup space, Entersekt, an authentication and mobile application security company, is leveraging the scalability of AWS to support world-renowned financial services organizations including Absa, Capitec Bank, Nedbank, Swisscard, and more. The company is using AWS to send fully encrypted data from their banking customer’s on-premises environments to the cloud. This high level of security helps Entersekt’s customers across 45 countries to secure over 150 million transactions per month, drastically reducing online and mobile banking and payment fraud rates. “As a South African headquartered company and long-term customer, we are proud to be among the first to welcome the news of an AWS Region,” said Schalk Nolte, CEO of Entersekt. “Our customers are large financial institutions for whom even minutes of downtime are unacceptable. They experience significant spikes in transaction volumes during the course of a month and AWS provides the elasticity and availability they demand, without having to build, operate, and protect a system of this kind themselves. AWS has ensured extremely high service levels even as transactions continue to double every six months. An AWS infrastructure region in South Africa is great news as it will give us the opportunity to continue this rapid growth and offer South African financial institutes localised data control and protection with increased system performance and reduced latency.”

Another startup using AWS to speed up their work is South African-based Hyrax Biosciences. Originating from the South African National Bioinformatics Institute at the University of the Western Cape, Hyrax Biosciences has developed a technology on AWS called Exatype that rapidly and accurately tests HIV and tuberculosis drug resistance. “When we were developing Exatype, we naturally turned to AWS because it allows us to provide patients with secure, timely, and reliable results. We knew that with the ability to quickly scale up our technology on AWS, our solution had the potential to influence the lives of millions of people,” said Professor Simon Travers, Co-Founder and CEO of Hyrax Biosciences. “Currently 10 percent of patients on HIV antiretroviral treatment do not respond to the drugs provided to them because of drug resistance. The Exatype system solves this problem by showing clinicians which drugs would be most effective for each individual patient in order to increase their response and improve treatment. Traditionally, it can cost as much as $300 to $500 to do a single resistance test. Now, thanks to AWS, Exatype can do this at a fraction of the cost. HIV still affects millions of people, so knowing an AWS Region is coming to South Africa is great news as it will help us to speed up research and take us a step nearer to ensuring all HIV positive people get the standard of care they need.”

AWS also has a vibrant ecosystem in South Africa, including AWS Partner Network (APN) Partners that have built cloud practices and innovative technology solutions on AWS. APN Consulting and Technology Partners in South Africa helping customers to migrate to the cloud include Autumn Leaf, BBD, Dimension Data, EOH, First Distribution, Silicon Overdrive, Servol Software, Symbiotics, Synthesis Software Technologies, and others.

AWS supports South African development

As well as supporting existing customers, AWS is also investing in the future of the South African technology community, taking part in a number of philanthropic and charity activities. Amazon supports organizations such as AfricaTeenGeeks, an NGO that teaches children to code, Code4CT, a charity set up to inspire and empower young girls by equipping them with technical skills, DjangoGirls, which introduces women to coding, and GirlCode, which supports the empowerment of women through technology. Amazon engineers work with these and other charities to provide coaching, mentoring, and AWS credits. Amazon also supports Africa-focused non-profit organization World Reader by donating cloud technology and Kindle devices, filled with e-books, to tackle illiteracy in Sub-Saharan Africa. As a result of the support from Amazon, World Reader has deployed over 27,000 Kindles to 396 schools and 109 libraries across 16 African countries.

In the education space, AWS supports the Explore Data Science Academy to educate students on data analytics skills in order to produce the next generation of data scientists in Africa. AWS is also working with education institutions in South Africa, such as the University of Cape Town and Stellenbosch University, to help train the next generation of cloud professionals through AWS Educate. Another program for higher education institutes is AWS Academy, which provides AWS-authorized courses for students to acquire in-demand cloud computing skills. The program has already attracted the country’s major academic institutions, including the University of Cape Town, University of Johannesburg, and Durban University of Technology.

To help grow the next generation of African businesses, AWS works with the venture capital community as well as accelerators and incubators in South Africa to provide resources to startups through programs such as AWS Activate. In Cape Town, AWS works with organizations such as 4Di Capital, AngelHub Ventures, Crossfin, Knife Capital, LaunchLab, MTN Solution Space, Mzansi Commons, and Silicon Cape as well as co-working hubs, such as Workshop17, to provide coaching and mentorship as well as technical support and resources to help African startups launch their businesses and go global.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via [email protected]

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Zoho Launches Nathu La Server

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Zoho Nathu La Server

By Modupe Gbadeyanka

A designed-in-house server known as Nathu La has been launched by a global technology company, Zoho Corporation.

Nathu La is engineered with hardware-rooted security at every layer of the stack. Its indigenous IP-driven approach reduces dependency on external entities for security audits, firmware updates, and licensing continuity.

The solution aligns with open-source software principles and reflects Zoho’s broader commitment to building sustainable, secure, and scalable digital infrastructure. It also supports the growing global focus on digital sovereignty, local innovation ecosystems, and high-performance computing capabilities.

The platform was introduced by the company as part of a pivotal step in its journey towards building its full technology stack, from the hardware layer to software applications.

With Nathu La, Zoho has achieved equivalent performance with 12-18 per cent lower power consumption and 20-30 per cent lower total cost of ownership (TCO), thereby reducing inference costs.

The Nathu La server, comprising Intel® Xeon® 6 processors, was developed collaboratively with Intel, leveraging their enablement capabilities and technical expertise.

The design philosophy behind Nathu La is rooted in the Open Compute Project (OCP), emphasising modularity, thermal efficiency, and ease of maintenance. This enables Zoho’s data centres to significantly reduce total cost of ownership and power consumption.

Zoho plans to host its applications on the Nathu La server platform, enabling the company to optimise the full software-hardware stack for its specific workloads, reduce costs, improve performance, and strengthen data governance for its global customers. This will also help bring down inference costs for Zoho’s AI usage.

The Nathu La server motherboard and chassis platform is the result of five years of R&D across hardware, firmware, and systems management. Based on Intel® Xeon® 6 Processors, the server is designed to optimise performance for virtualisation (VM), High Performance Computing (HPC), AI inference, and storage applications. This results in improved performance of Zoho applications for end users.

The server features customised power delivery subsystems, an in-house DC-SCM (Data Centre Secure Control Module) design, and modular chassis options compatible with diverse end-user environments, offering flexibility across deployment types.

All modular components – including the DC-SCM and NIC (Network Interface Card) – were designed in-house by Zoho’s hardware engineering team and assembled through electronics manufacturing partners, enabling tighter integration and quality control across the platform. Over five patents have been filed covering advanced thermal management and cost-optimised server architecture designs.

“Zoho Corporation has invested in building its own technology stack from the ground up over the last three decades. The Nathu La server launch is in line with that goal.

“With our strategy of using contextual, right-sized models, running on our own platform, on our own servers, in our own data centres, we are compounding the benefits accrued from owning and operating our entire technology stack. This ensures that our solutions are more sustainable and accessible for businesses.

“These long-term R&D investments we are making at every layer of the stack are aimed at delivering customer value,” the Country Head for Zoho Nigeria, Mr Kehinde Ogundare, stated.

In 2020, Zoho established a small R&D team in Nagpur, a Tier 2 town in India, focused on projects such as server design and systems engineering.

Members of the Nathu La R&D team include hires from SETU – short for Students’ Engagement for Transformative Upskilling – an initiative designed to build a pipeline of industry-ready engineers, with a focus on advanced learning in Electronics System Design and Manufacturing (ESDM).

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MTN Fintech Targets Credit Market With Direct Lending Plans

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mtn data centre

By Adedapo Adesanya

The financial technology arm of MTN is mulling a direct shift into lending after bringing on its parent company, MTN Group, as a major investor to help cushion against losses that have plagued the business.

According to MTN Group Fintech chief executive, Mr Serigne Dioum, the company wants to move beyond helping customers access loans through partners.

He said in markets where regulators allow it, MTN wants to lend directly and use its own balance sheet.

“We’ve expanded access to credit for more people, but we also want to move further up the lending value chain,” Mr Dioum told investors at the company’s capital markets day.

“Where appropriate, we will seek licences that allow us not only to facilitate loans but also to lend directly to customers and deploy our own balance sheet.”

This development is expected to create a shift in its current fintech model which provides financial services, including deposits, payments, transfers and digital wallets to individuals and small businesses via digital and mobile‑based platforms.

The company has applied for Payment Solution Service Provider and Payment Terminal Service Provider licences through MoMo PSB, its Nigerian fintech subsidiary. If approved, the licences would allow MTN to handle more payment processing, build merchant payment tools, deploy and manage POS terminals, and reduce its dependence on third-party processors.

Despite the opportunities present in the credit market, direct lending could give MTN a larger share of revenue, but it would also expose the company to credit risk, regulation and tougher competition with banks and digital lenders.

Mr Dioum said only about 4 per cent to 5 per cent of adults have access to formal credit across the African continent. In Nigeria, the funding problem is especially severe.

A 2025 report by the National Credit Guarantee Company said nearly 80 per cent of Nigerian MSMEs lack access to formal credit, while Stears has estimated the country’s MSME financing gap at about $236 billion.

For traders, small shop owners, transport operators and households, access to small loans can determine whether they restock inventory, pay suppliers, cover emergencies or expand a business.

In April, MTN Nigeria announced that its parent firm, based in South Africa, would acquire a 60 per cent stake in MoMo Payment Service Bank Limited (MoMo PSB) and Y’ello Digital Financial Services (YDFS) Limited.

The fintech units are currently loss-making, and this move will help MTN Nigeria to reduce financial risk and share future losses and investment burden. However, it will still keep a significant minority stake (40 per cent).

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Meta Expands Business Agent to Instagram, WhatsApp, Messenger

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Meta Business Agent

By Aduragbemi Omiyale

The reach of the Meta Business Agent is being expanded to Instagram and other platforms of the social media giant.

Meta Business Agent is an artificial intelligence (AI) that allows business owners to attend to customers’ needs with ease.

Customers expect instant responses, but no team can be everywhere at once. This innovation handles such without hassles.

It helps businesses to answer questions specific to the business, makes product recommendations from the catalogue, books appointments, qualifies incoming leads, and closes sales.

More than one million businesses are already using a Meta Business Agent on WhatsApp and Messenger to respond to customers around the clock.

“We’re now expanding our Business Agent to businesses big and small globally, so within minutes you can have yours up and running, responding in your customer’s local language using your tone,” Meta said in a statement.

“We’re also expanding these agents to Instagram since businesses connect with their customers there, too. Businesses can activate their Business Agent here. Getting started with the Business Agent is free. In the coming months, businesses will access the agent through our paid subscription offerings, with options for businesses of every size,” it added.

Meta also stated that it is making it simpler for people to discover businesses powered by a Meta Business Agent directly on WhatsApp. It noted that starting soon, people will be able to find businesses by typing their name in the Search bar, or by sharing their phone number or contact card in chats with friends and family. This way, when more customers reach out, they get a quick, helpful response.

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