BCX pushes cloud dominance plan with DotCom acquisition

BCX has acquired cloud solutions provider DotCom for an undisclosed sum, adding to the group’s cloud investment push.

“As a cloud solutions provider, DotCom adds to our own cloud capabilities, specifically with regards to Microsoft Azure, which further drives our cloud agnostic strategy”, said Jan Bouwer, chief of digital platform solutions at BCX.

Founded in 2012, DotCom specialises in cloud solutions and has gained status as a Microsoft Azure Gold partner over time.  

DotCom delivers services and solutions including cloud software and cloud-managed services, as well as cloud advisory and consulting to companies making the move to cloud computing. The company says it has built up a client base from a range of industries, including the financial and insurance sectors.

Telkom continues its search for a global joint venture partner with the financial and technological muscle to help plug the holes in the IT service unit, which has been losing money for years. Having been bought out by the partially state-owned operator in 2014, BCX has struggled to produce a consistent profit.

The group’s mission to take up greater market share in cloud computing and to make its business more attractive for a potential outside investor has been boosted by a recent deal that sees BCX supplying cloud computing products on behalf of Jack Ma’s Alibaba, from which Telkom expects to make money from the 2024 financial year.

BCX believes more businesses are investing in a hybrid approach that mixes on-premises and cloud-based systems, and that the market as a whole is moving towards greater reliance on subscription-based software, infrastructure and managed cloud services. 

“BCX is [also] aggressively growing its capabilities to create a more balanced product portfolio for growth. The acquisition of DotCom combined with existing capabilities at BCX will create a powerhouse in the cloud space,” BCX CEO Jonas Bogoshi said.

The search for an investor for the IT company is part of a wider strategic push by the fixed-line operator to release billions of rands trapped in its sprawling structure, which includes properties, masts and towers, BCX and internet fibre operator Openserve.

Telkom hopes outside investment will help to stabilise BCX’s business, but progress in finding such a benefactor appears to be much slower than market players had expected. A lack of solid plans or announcements for BCX, as well as for masts and towers unit Swiftnet and Openserve, has become a concern for the market as the group reported its first full-year earnings. 

gavazam@businesslive.co.za