Direct correlation between cloud adoption and GDP growth

A new report from Amazon Web Services suggests that increased cloud adoption could unlock up to R3.9-trillion of economic value in South Africa over the next decade.

AWS said it commissioned US consulting firm Telecom Advisory Services to conduct the study from which the report was developed.

The report found that productivity gains related to cloud adoption accounted for more than three quarters of the R14.3-billion that cloud technologies contributed to the local economy in 2021. The major correlation showed that every 1% increase in cloud penetration translates into 0.06% growth in GDP.

Similar studies examining the impact of technologies on society have previously been undertaken. In a 2015 study, the World Bank looked at the relationship between broadband internet and economic growth, which itself was a follow-up to a similar study from 2009.

Cloud adoption

“Until recently, research on the economic impact of cloud was focused at the firm level, understanding the microeconomic benefits associated with cloud adoption – for example, capital efficiency, contribution to product development and the like),” said AWS GM for sub-Saharan Africa Amrote Abdella in a statement.

Read: South Africa gets first AWS skills centre outside the US

“This report underscores the immense potential for South Africa and the sub-Saharan Africa region to harness cloud computing and expedite economic growth. By increasing the current average cloud penetration, the region can unlock additional economic value.”  — © 2023 NewsCentral Media

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