TRENDING
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Prediction 2: Multi-tenanted
data centres
Multi-tenanted data centres will drive growth
in data centre revenues. The data centre (DC)
revenue contributes 8% towards the overall
ICT industry and is estimated to reach R8.0
billion in 2019 with a growth of 10.6%.
While a 1.8% growth in DC’s revenue
is expected in 2019, the growth of DC
services via cloud will take longer than
expected due to consumer protection
regulations and the fact that large
enterprises’ transition to cloud is hampered
by legacy infrastructure.
A potential business model would be for
cloud services to target SMEs as they have
the potential to improve efficiencies and
reduce costs.
Prediction 3: 5G will take longer than
anticipated; 3G is the present reality
for South Africa
Expensive data packages and delays
in spectrum release are hampering
subscriber base growth for 5G. While
mobile operators are ready to develop
4G networks and deploy 5G services,
3G will be the dominant technology
over the next three years. 5G promises
significantly higher speed than 3G and 4G;
however, there are still concerns about the
immediate reliance on 5G for industries.
5G will be appropriate for industries
requiring real-time decision making.
Prediction 4: South African start-ups
will lead the innovation in IIoT and
its cross-industry integration
With start-ups focussing on innovative
IoT solutions to reach 6.2 million in M2M
subscriptions, non-voice services, especially
mobile data (3G and 4G), will continue to
drive IIoT market growth in 2019.
Telecommunication providers will become
end-to-end solutions providers, growing
beyond offering connectivity services
to provide sensors, hardware, software,
platforms, cloud, analytics and security.
Prediction 5: AI-powered
business applications to increase
productivity and efficient customer
support and services
AI solutions that address regionally relevant
challenges such as poaching and accessible
healthcare and education services will grow
steadily, improving the quality of life in
South Africa.
Hospitality, manufacturing and mining will
use AI services in 2019.
Prediction 6: Digital Transformation
to improve customer experience
Customers are demanding self-service, and
companies aiming to improve the customer
experience will focus on the digitisation
of processes such as AI-enabled customer
touch points.
An omni-channel strategy will ensure a
consistent, high-quality customer experience,
regardless of how, where or why a customer
chooses to interact with an organisation.
Prediction 7: Incumbents and
fintech firms will continue to enjoy a
(mostly) good relationship
With the exception of direct competitors,
South African banks will continue to attempt
to work with fintech start-ups and encourage
innovation in this area.
South Africa’s fintech ecosystem is becoming
steadily more innovative and dynamic with
South African banks attempting to work with
fintech firms either through acquisitions or
partnerships to capitalise on innovations.
Blockchain, augmented reality and virtual
reality are the emerging technologies that
Frost & Sullivan believes will disrupt the
South African ICT industry in 2019.
Blockchain has the potential to greatly
increase the efficiency of data transfer
between multiple parties, significantly
reducing delays and costs, despite
cryptocurrency price clashes and regulations,
which will prompt exploration of other
applications of blockchain technology.
Augmented reality will be largely used in
facilitating training and education and in
industrial maintenance in the engineering
services industry. It will also be used to
enhance customer engagement and branding
in the banking and retail industries through
gamified mobile app-based platforms.
Virtual reality will redefine the training,
marketing and advertising service
delivery models across various sectors
and provide customers with an immersive
and interactive experience while helping
to reach a wider audience to establish
deep-rooted relationships with existing and
potential new customers. n
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