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<p class=MsoNormal><span style='font-size:9.0pt;font-family:"Century Gothic","sans-serif";
color:#1F497D'>Barrack , <o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:9.0pt;font-family:"Century Gothic","sans-serif";
color:#1F497D'> 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.<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:9.0pt;font-family:"Century Gothic","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:9.0pt;font-family:"Century Gothic","sans-serif";
color:#1F497D'>Cheers <o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:9.0pt;font-family:"Century Gothic","sans-serif";
color:#1F497D'>MM<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:9.0pt;font-family:"Century Gothic","sans-serif";
color:#1F497D'><o:p> </o:p></span></p>
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<p class=MsoNormal><b><span lang=EN-US style='font-size:10.0pt;font-family:
"Tahoma","sans-serif"'>From:</span></b><span lang=EN-US style='font-size:10.0pt;
font-family:"Tahoma","sans-serif"'>
kictanet-bounces+mureithi=summitstrategies.co.ke@lists.kictanet.or.ke
[mailto:kictanet-bounces+mureithi=summitstrategies.co.ke@lists.kictanet.or.ke] <b>On
Behalf Of </b>Barrack Otieno<br>
<b>Sent:</b> 06 February 2010 09:20<br>
<b>To:</b> mureithi@summitstrategies.co.ke<br>
<b>Cc:</b> KICTAnet ICT Policy Discussions<br>
<b>Subject:</b> Re: [kictanet] Local Content: Cost of Local Hosting<o:p></o:p></span></p>
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<p class=MsoNormal><o:p> </o:p></p>
<p class=MsoNormal style='margin-bottom:12.0pt'>Wes,<br>
<br>
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.<br>
Regards<o:p></o:p></p>
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<p class=MsoNormal>On Fri, Feb 5, 2010 at 11:30 PM, wesley kirinya <<a
href="mailto:kiriinya2000@yahoo.com">kiriinya2000@yahoo.com</a>> wrote:<o:p></o:p></p>
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<p class=MsoNormal style='margin-bottom:12.0pt'><span style='font-family:
"inherit","serif"'>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.<br>
<br>
A <b>Dedicated </b>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.<br>
<br>
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. <br>
<br>
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, ...".<br>
<br>
Therefore we are looking at a situation where local content might be hosted
internationally.<br>
<br>
8~!<o:p></o:p></span></p>
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<p class=MsoNormal><span style='font-family:"inherit","serif"'> <o:p></o:p></span></p>
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<br>
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<p class=MsoNormal><br>
<br clear=all>
<br>
-- <br>
Barrack O. Otieno<br>
Administrative Manager <br>
Afriregister Ltd (Ke)<br>
P.o.Box 21682<br>
Nairobi 00100<br>
Tel:<br>
+254721325277<br>
+254733206359<br>
+254202498789<br>
Riara Road, Bamboo Lane<br>
<a href="http://www.afriregister.com">www.afriregister.com</a><br>
<a href="http://www.afriregister.co.ke">www.afriregister.co.ke</a><br>
ICANN accredited registrar.<br>
Skype: barrack.otieno<o:p></o:p></p>
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