Amazon Web Services (AWS), a leading cloud service provider, has disclosed in a recent study that the adoption of cloud technology in Nigeria is projected to generate an additional N30.2 trillion in economic value by 2023.
Amrote Abdella, AWS General Manager for Sub-Saharan Africa (SSA), stated in a press release on Wednesday that the report underscores the substantial potential of cloud adoption within the Nigerian market for the forthcoming decade from 2023 to 2033.
Abdella said that the potential yield of N30.2 trillion represented 0.36 percent of Nigeria’s cumulative Gross Domestic Product (GDP), just by accelerating adoption of cloud.
She said that the new report commissioned by AWS was to quantify the relationship between public cloud computing adoption, national productivity, and economic growth in Nigeria.
According to her, the report underscores the immense potential of cloud adoption for Nigeria and the SSA region.
Cloud adoption is a strategy used by enterprises to improve the scalability of Internet-based database capabilities while reducing cost and risk.
Put simply, “the cloud” is comprised of software and services residing and operating on the Internet instead of a local computer or on-premise network of servers.
To achieve this, businesses engage in the practice of cloud computing or using remote servers hosted on the Internet to store, manage and process critical data.
Cloud computing has been available to the general public for several years, but hybrid cloud computing is a relatively newer concept combining one or more cloud providers, such as Amazon Web Services.
Abdella said that there was immense potential in harnessing cloud computing and expediting economic growth.
She said that by increasing the current average cloud penetration, the region could unlock additional economic value.
“AWS is committed to supporting its customers and partners in Nigeria throughout their cloud journey.
“We firmly believe that cloud technology will be crucial in driving innovation, boosting productivity, and scaling businesses in the region over the next decade.
“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,” she said.
According to Abdella, the study demonstrates that the economic impact of cloud computing is guided by returns to scale of greater adoption of cloud computing.
She said it would lead to proportionally greater productivity gains and economic impact.
The AWS general manager noted that in 2021, only 27 percent of organisations in Nigeria adopted cloud computing, significantly lower than the adoption rates of 49 percent in Western Europe and North America.
She said that this presented an opportunity for the country to enhance its cloud penetration and reap substantial benefits.
According to her, the report identifies four key advantages of cloud computing to be enhancing business efficiency and effectiveness, streamlining processes and improving outcomes.
Abdella added that cloud computing also offered access to a wide range of services, enabling businesses to leverage advanced technologies.
“It boosts productivity by facilitating collaboration, mobility and agility within the workforce.
“Lastly, cloud computing promotes environmental sustainability by reducing carbon emissions per unit of data transmitted,” the AWS general manager added.
AWS is a subsidiary of Amazon that provides on-demand cloud computing platforms and APIs to individuals, companies and governments, on a metered, pay-as-you-go basis.
Since 2006, AWS has been the world’s most comprehensive and broadly adopted cloud.