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Red Hat looks to Africa

The US-based company wants to tap into Africa's potential to leapfrog to new technology, such as the cloud.

Nicola Mawson
By Nicola Mawson, Contributor.
Johannesburg, 04 Apr 2014
Red Hat is testing the water in Nigeria, says Michel Isnard, VP for the company's southern EMEA region.
Red Hat is testing the water in Nigeria, says Michel Isnard, VP for the company's southern EMEA region.

Red Hat, a US-based provider of open source software for the enterprise market, has identified 10 African countries into which it wants to expand as the continent gears up for ICT growth.

The company, which has 6 300 staff members around the world, already has six people on the ground in SA, supported by back-office staff in global hubs, and has dedicated channel partners supporting some African clients.

Michel Isnard, VP for the company's southern Europe, Middle East and Africa region, says Red Hat is co-funding accounts in Nigeria as a way to test the water and will monitor the outcome for as long as 18 months.

After that, Isnard says, the company may set up a physical presence in the country. He explains it will take a cautious approach to expansion in Africa, and each country must present a viable business case.

Isnard adds there are about 10 other markets in Africa to which Red Hat must pay attention, which include Nigeria and Kenya. Morocco, Tunisia and Egypt are also being pondered as additional growth avenues, he says.

Vital infrastructure

Isnard says more than half the company's business comes from the general channel, which it views as a natural extension. He says this will expand in future as IT is becoming more about selling a value proposition.

Red Hat has followed the same development path in SA as it has in other regions of the world, says Isnard. The company sees the country as a major market within its Middle East, Turkey and Africa region, he notes.

The company, which is two decades old, has been in SA for five years and sees the country as its largest operation on the continent, says Isnard. He explains that when Red Hat ponders a new country, it considers aspects such as growth prospects and the size of the addressable market.

Red Hat also takes into account factors such as the telecoms infrastructure, level of education and trade connections.

"SA remains prominent in our African strategy, because of the size of the addressable market, the level of education within the IT community, the market's depth of experience in infrastructure solutions, and the fact there are a considerable number of multi-nationals whose African headquarters are in the country."

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