In an interview with TechFinancials, William Dong, President of Huawei Cloud Marketing, shared insights on how Huawei Cloud is positioning itself to drive growth and accelerate digital transformation in South Africa’s private and public sectors.
As South Africa’s market moves closer to adopting cloud and AI technologies, Dong emphasised the pivotal role that Huawei Cloud plays in enabling this shift.
Dong was speaking ahead of the inaugural Huawei Cloud South Africa Cloud Summit 2024, set to be held tomorrow in Johannesburg.
This landmark event will bring together over 600 industry leaders from various sectors at the Gallagher Convention Centre for discussions, speeches, and product showcases that aim to shape the future of South Africa’s digital industries.
In July, Huawei announced the launch of its Huawei Cloud Stack 8.3 offering at the Huawei Africa Connect 2024 conference, also held in Johannesburg. In line with this, Huawei Cloud has ramped up investments across Africa to support the continent’s development into an intelligent digital hub.
The journey began in 2018 with the launch of Africa’s first public cloud region by Huawei Cloud in Johannesburg. This was followed by the launch of Northern Africa’s first public cloud region in Cairo, Egypt, in June 2024. Huawei Cloud has since been recognised as one of the fastest-growing cloud providers globally.
During the interview at Huawei’s Campus in Johannesburg, Dong shared his views on the critical role of cloud technology as the backbone of digital transformation.
The power of cloud and AI in digital transformation
Digital transformation has become a buzzword across industries, but for companies to successfully embark on this journey, they first need to build robust digital infrastructure.
According to Dong, the cloud is the backbone of this transformation.
“Cloud technology is the best platform for building digital infrastructure. It provides access to the latest technology and abundant resources for data storage and computing power. What’s unique about cloud technology is that it can bring the most advanced capabilities from anywhere in the world to South Africa. It ensures that businesses can stay up to date with global innovations while operating locally,” Dong explained.
For South Africa, this is a significant opportunity. As companies in sectors such as e-commerce, logistics, and financial services expand, they can leverage the cloud to scale quickly without the limitations of traditional infrastructure.
Cloud as a catalyst for success
Dong highlighted how Huawei Cloud is more than just a technology provider, it’s an enabler of best practices. He compared the cloud to a smartphone ecosystem filled with applications:
“For any business, from FinTech, ecommerce to government services, cloud platforms offer ecosystems of applications that are proven successful. These best practices are critical for ensuring that digital transformation efforts lead to concrete results.”
In South Africa, where digital transformation is still in its early stages, companies can benefit from these best practices to accelerate their growth.
Opportunities in South Africa’s public and private sectors
While private enterprises are already seeing the benefits of cloud technology, Dong sees enormous potential in the public sector as well. South Africa’s government is making strides toward digital transformation, but more needs to be done to fully harness the potential of cloud and AI.
“We see huge opportunities in the public sector, particularly in areas like education, healthcare, and government services. Cloud technology can help improve the efficiency and effectiveness of public services, making them more accessible and user-friendly,” Dong said.
One example is Huawei’s partnership with the Passenger Rail Agency of South Africa (Prasa), which is already benefiting from cloud solutions. Prasa has implemented Huawei’s Smart Railway Perimeter Detection Solution to enhance the safety of its railway infrastructure.
This system, which uses AI and sensor technology, has significantly reduced the risk of security breaches along the railway tracks. By employing cutting-edge cloud solutions, public sector organizations like Prasa are leading the way in digital transformation.
Challenges in accelerating digital transformation
Despite the promising outlook, South Africa faces challenges in fully embracing cloud technology. Dong, who has been to South Africa multiple times over the last decade, observed that while certain industries are showing rapid growth, others are still lagging in their digital transformation journey.
“In Asia-Pacific, for example, e-commerce has grown tremendously, with online platforms offering highly interactive and personalised shopping experiences. In South Africa, online shopping is growing, but the local market is still in the early stages of adopting these advanced capabilities,” Dong noted.
He emphasised that for South Africa to keep up with global trends, local businesses and ecosystems must accelerate their digital transformation processes. This is where Huawei Cloud aims to step in, providing the tools and technologies needed to help South African companies and government entities digitise faster.
Hybrid Cloud solutions for a diverse market
At the upcoming Huawei Cloud Summit, Dong revealed that the company will be launching hybrid cloud solutions to address South Africa’s unique needs. Hybrid cloud, which combines the benefits of public and private clouds, is ideal for organisations that need to maintain strict data privacy while still accessing cutting-edge technology.
“Sometimes businesses need the scalability of public cloud services, but they also have concerns about data privacy. Our hybrid cloud solutions offer the best of both worlds, enabling businesses to leverage the cloud’s flexibility without compromising on security,” Dong explained.
Additionally, Huawei Cloud will unveil its latest large language models, such as the “Pangu models,” designed to help businesses accelerate their AI adoption. These models are expected to revolutionise how South African companies use AI in sectors like customer service, logistics, and financial services.
Strategic partnerships fueling growth
One of the key strategies for Huawei Cloud’s growth in South Africa is forging strategic partnerships with Standard Bank.
Group CEO of Standard Bank PPB Funeka Montjane said partnering with Huawei will not only help their systems meet customer demands, but it will also benefit society.
For example, the collaboration can enhance Standard Bank’s digital crowdfunding platform which connects students from rural areas “who would have not had an opportunity to study without access to that funding.”
She concluded that it is a significant partnership because “technology connects people”.
For small and medium-sized enterprises (SMEs), Huawei Cloud is also introducing new products like Huawei Cloud Flexus, designed to make cloud adoption simpler and more affordable.
“With just one click, businesses can access the full power of the cloud. This is especially important for SMEs that may not have the resources to build their own infrastructure from scratch,” Dong added.
The road ahead: A cloud-first approach
Looking ahead, Dong believes that South Africa is at a tipping point.
As more industries adopt cloud and AI technologies, the country has the potential to become a leader in digital transformation on the continent. However, to achieve this, both the public and private sectors must embrace a cloud-first approach.
“For us, digital transformation starts with the cloud. It’s not just about technology, it’s about enabling organisations to innovate and grow. By adopting a cloud-first mindset, South Africa can accelerate its digital transformation and create a more connected, efficient, and competitive economy,” Dong concluded.
With Huawei Cloud’s advanced technology and commitment to the local market, South Africa is poised to embark on an exciting journey toward digital transformation.
As more businesses and government entities tap into the power of cloud and AI, the country’s digital landscape will continue to evolve, opening up new opportunities for growth and development.
