[kictanet] Local Content: Cost of Local Hosting

[muriuki mureithi]

Barrack , 

 We did a study for a client  last year and  our finding is that the current
ones cannot benefit from economies of scale, are not able to attract high
volume third party business both local as well as international - should be
TIA942 and preferably Tier4 . data centre is a volume business and we need
to break  the glass ceiling to compete globally. The fibres that landed in
Kenya  will ONLY take away the business  even more efficiently  than  before
unless we have a national strategy or a big operator decides to step in  to
move the country   past the glass ceiling.

 

Cheers 

MM

 

From: kictanet-bounces+mureithi=summitstrategies.co.ke at lists.kictanet.or.ke
[mailto:kictanet-bounces+mureithi=summitstrategies.co.ke at lists.kictanet.or.k
e] On Behalf Of Barrack Otieno
Sent: 06 February 2010 09:20
To: mureithi at summitstrategies.co.ke
Cc: KICTAnet ICT Policy Discussions
Subject: Re: [kictanet] Local Content: Cost of Local Hosting

 

Wes,

Great observation, i know of a number of data centres locally, i wonder
whether any research has been done to establish whether they are profitable
ventures, as you have mentioned it seems cheaper to host externally however
this has its own ramifications that you have rightly quoted.
Regards

On Fri, Feb 5, 2010 at 11:30 PM, wesley kirinya <kiriinya2000 at yahoo.com>
wrote:


Bandwidth costs seem to be coming down and that's welcome news. However an
important area seems to be largely ignored and that's the cost of hosting
locally.

A Dedicated server in the U.S/Europe (8 Core Processor, 6GB RAM, 3,000GB
Bandwidth, 500GB disk space, ...) costs about $500/month. I believe in Kenya
that would cost about 8-10 times more and that's without the 3,000GB
bandwidth. With bandwidth becoming cheaper and better quality, it's far
cheaper to host the local content internationally, and end-users might not
feel a big difference in speed and quality.

Factors leading to high hosting cost might be cost of physical space and
electricity (highly priced and unstable). If these are the major reasons why
hosting costs are high, then we cannot expect the cost to come down any
sooner no matter how many fibres are coming to Kenya. 

Local companies (e.g. BPOs dealing with large volumes of data) and local
branches of international companies looking for secure off-site back up
might also do it from internationally located servers, where the companies
running those servers not only offer lower cost but also more experience
which leads to better service. As one of such companies puts it ,"98% of
replies within 30 mintues, 99.9% Network Uptime Guarantee, ...".

Therefore we are looking at a situation where local content might be hosted
internationally.

8~!

 



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Barrack O. Otieno
Administrative Manager 
Afriregister Ltd (Ke)
P.o.Box 21682
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