[kictanet] Got talent? Matiang'i is looking for you

Sat Mar 22 14:13:55 EAT 2014

There are few global pure-play mobile firms that are profitable and/or cash
flow positive. Its really really hard to get the Internet to pay for
something and without resorting to the old-age game of advertising and in
which case you will need numbers north of 100M Users to be taken seriously.

In order to get to those level of users, you would need to invest in a few
billion shillings to get things moving in terms of advertising as well as
the hosting these applications.

So, while we hear of Twitter, WhatsApp and other successful mobile firms,
it would be wise to know that without a solid funding background to these
non-profit making companies, they wouldn't be there.

Now, where does that money to invest in these firms come from? It comes
from those American firms such as IBM, HP, Intel, CISCO, Google, Symantec,
Amazon; solid companies that are making products that users actually get
their hard earned cash to pay for.

So, if you would ask me, we would need first to create our own industry
first, with applications that the market is actually paying for (e.g The
Ksh 15B GoK Enterprise Service Market) before we get to investing in
applications that are built first then someone figures out how to make cash
later.

The problem as I have seen in the local market is the tendency to just
build applications for the sake of it and that ultimately no one will pay
anything for.

And finally, enterprise applications (what you maybe be call server side)
are those applications that actually help someone in their work. Their
delivery modes are vast (desktops, tablets, phones etc) They are basically
applications that a user would pay for.

So while MPesa rans on mobile phones its actually an enterprise application
if you just think what goes on behind the scenes and as you look for the
revenue model.

So before we get to start yet another competition to review the best dating
app, let look at the fact that there are companies in this country that are
already paying billions for certain applications, and if there are good
local options, they wouldn't mind buying local.

My point is, lets invest first-and-foremost in applications that have a
ready market, that the market is already paying for, before we start
applications that even the market hasn't figured out yet how to make them
commercially viable.

Regards
Waithaka Ngigi

On Sat, Mar 22, 2014 at 1:30 PM, Phares Kariuki <pkariuki at gmail.com> wrote:

> John,
>
> You forget that mobile focuses on delivery. No real computing happens on
> mobile. Facebook runs massive data centers to compliment it's mobile
> offering. So does Google, to complement android. M-Pesa had to get capacity
> in rack space. Mobile is but a delivery tool. The argument that we should
> focus on mobile is akin to saying that we should scrap universities
> (knowledge 'producers') and focus on printing presses, because people read
> books.
>
> Most mobile applications are hollow at best without infrastructure.
>
> Think about it all the leaders in mobile Instagram, Amazon, Apple,
> Facebook, Safaricom have massive compute capacity (Instagram leases from
> amazon). We on the other hand only want to focus on delivery.
>
>
> Sent from my mobile device, excuse brevity
>
> On 22 Mar 2014, at 13:22, Dennis Kioko <dmbuvi at gmail.com> wrote:
>
> Hi Kieti,
> How comes none of these thousands of software developers are supplying
> even a single solution to government. How comes government services are
> barely available to the millions of Kenyans via mobile?
>
> See our drift, government should be removing barriers and improving
> service delivery for all.
>
> Also, what was the role of governments in the likes of Angry Birds, King
> (Candy Crush Saga) and Facebook, beyond providing an enabling environment -
> which we don't do here.
>
> On Saturday, 22 March 2014, John Kieti <jkieti at gmail.com> wrote:
>
>> Phares, Ngigi, Conrad
>>
>> Your focus and preference for server side and enterprise desktop mode
>> solutions is very much appreciated.
>>
>> However the thousands of local software developers getting into the
>> system will not fit into just that pie of the value chain you are in for
>> now. More so, 30m+ mobile subscribers is no small market place for software
>> entrepreneurs. And nowadays the computer does not have to be on your desk
>> or lap, in fact most computers among Kenyans are mobile phones. It is not
>> bad for policy to at least direct the youth towards the opportunity in
>> mobile.
>>
>> You'll recall that its a global market place and some of the kids we
>> deride for writing the so called "mVitus" are earning thee figure dollar
>> checks monthly from downloads and ads in india, brazil etc. They just wont
>> shout that aloud. More importantly though M-Pesa is seven years old. Many
>> mobile solutions targeting local/regional problems will not mature as soon
>> as we impatiently expect. We're only 3-4 years into the "mobile craze" and
>> most serious attempts are not over 3 years old. There's no short cuts to
>> developing competitive advantages - even in mobile, give it time. If you
>> are not convinced yet, try the ringtone market and premium SMS services.
>> Its a whole big economy out there, with big money changing hands, and its
>> all mobile!
>>
>> That said, what would you rather the CS did about local enterprise
>> desktop based solutions and server side services?
>>
>> Have a nice weekend.
>>
>>
>> On Sat, Mar 22, 2014 at 12:47 PM, Rad! <conradakunga at gmail.com> wrote:
>>
>>> I'm mystified as well at this obsession with mobile apps.
>>>
>>> Not that we should not to them, but there is so much opportunity in
>>> other sectors - infrastructure, cloud computing, enterprise applications,
>>> content management that Kenya can not only benefit from, but we can be
>>> competitive globally.
>>>
>>> Looks like mobile apps will be this regime's Pashas & BPOs
>>>
>>>
>>> On Sat, Mar 22, 2014 at 12:14 PM, Phares Kariuki <pkariuki at gmail.com>wrote:
>>>
>>>> A fairly narrow view of the technology sector. It's not all mobile.
>>>>
>>>> Sent from my mobile device, excuse brevity
>>>>
>>>> On 22 Mar 2014, at 04:56, Grace Githaiga <ggithaiga at hotmail.com> wrote:
>>>>
>>>>
>>>> http://www.standardmedia.co.ke/m/story.php?articleID=2000107530&story_title=Got-talent-Matiangi-is-looking-for-you
>>>>
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>>>
>>>
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>>> sector in support of the national aim of ICT enabled growth and development.
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>>
>>
>>
>> --
>> My Blog - www.gmeltdown.com
>> '''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''
>> The ordinary just won't do
>>
>
>
> --
> with Regards:
>
> blog.denniskioko.com <http://www.denniskioko.com/>
>
>
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> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform
> for people and institutions interested and involved in ICT policy and
> regulation. The network aims to act as a catalyst for reform in the ICT
> sector in support of the national aim of ICT enabled growth and development.
>
> KICTANetiquette : Adhere to the same standards of acceptable behaviors
> online that you follow in real life: respect people's times and bandwidth,
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> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform
> for people and institutions interested and involved in ICT policy and
> regulation. The network aims to act as a catalyst for reform in the ICT
> sector in support of the national aim of ICT enabled growth and development.
>
> KICTANetiquette : Adhere to the same standards of acceptable behaviors
> online that you follow in real life: respect people's times and bandwidth,
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-- 
*Regards,*

*Wait**haka Ngigi*
Chief Executive Officer | Alliance Technologies | MCK Nairobi Synod Building
T + 254 (0) 20 2333 471 |Office Mobile: +254 786 28 28 28 | M + 254 737 811
000
www.at.co.ke
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