<div dir="ltr"><div><div><div><div><div><div>Martin,<br><br>The interesting bit is, and as you can see, we are struggling to name a few successful 'mobile' companies that are maybe paying their bills. Maybe one company here having downloable music, another there selling coupons in town, another there showing farmers how much cabbages are going for in town. Yes nice noble applications. And then there is this Kenyan guy in Barcelona who 'claims', maybe he does, makes a few million shillings per month, but what I would like to ask is this.<br>
<br></div>Have you heard of firms like:<br></div>Craft Silicon, PesaPal, Alliance Technologies, Seven Seas, TurnKey Africa, MyStocks, TBM, Compulynx, AccessKenya, Wananchi Group, EIM, Coretec, Octagon Data Systems, KAPS etc?<br>
<br></div>These are technology firms, founded here in Kenya by Kenyans and today , year-in-year out, have combined revenues exceeding Ksh 5B, and employing thousands of techies.<br><br></div>I think if we as a country wanted to invest into the technology industry, it would be good to pick from the lessons learnt by these firms in order to push them to higher heights as well as pull in more newer and younger companies that would fill in the slots.<br>
<br></div>But, somehow, somewhere, someone, without much thought, wanted this country to be the next silicon valley. His Answer; let us develop mobile apps and BPOs. Industries in which there was not even a precedent and success stories to talk about locally.<br>
<br>And thus, every investment coin the country has had to invest in technology, is being spent in an incubation lab somewhere, trying to make the next iCow, instead of maybe having a serious conversation with say Richard Bell of Wananchi and asking him what do we need to do to make Zuku a bigger brand than DSTV in Africa in 10 years, as an example.<br>
<br></div><div>So, what has our investment got us? Developers who are so spoilt with money and easy options each making a single little feature, calls it the next big thing in mobile, wins a mobile-competition somewhere, and that's the last your hear of them, until their next 'big' idea or until there is a call for the next competition with anyone with 'Talent'.<br>
<br></div><div>If there is something in common with the firms that I have mentioned above, is that we *all* learnt how to be cash-flow positive from the word go. We started by making applications the market was ready to buy, and then we moved on from there.<br>
<br></div><div>I do remember when AccessKenya used to operate from a single room in Wabera Street, in early 2000s. But one thing I can tell you, that first leased line they had, someone paid for it, and then they became 2, 3... and the rest is history they say...<br>
<br>Guys, that is how you build industries, a step at a time.<br><br>Regards<br>Waithaka Ngigi<br></div></div><div class="gmail_extra"><br><br><div class="gmail_quote">On Sat, Mar 22, 2014 at 4:17 PM, Martin Gicheru <span dir="ltr"><<a href="mailto:martingicheru@gmail.com" target="_blank">martingicheru@gmail.com</a>></span> wrote:<br>
<blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex"><div dir="ltr">Liko of course there is a huge difference in terms of the opportunities, I concur. But remember in business there is the enterprise economy and there is SME economy, the latter is what's actually the bigger contributor to the economy, talk about jua kali and the likes. Now coming to ICT, we come from a position where local businesses are buying accounting applications from South Africa, this has more to do with the service providers that are the likes of you Liko and Bernard than the government.<div>
<br></div><div>Spinlet is indeed quite huge in that market, and as we see the same west africa companies though funded by European companies venturing into our ecommerce industry.</div><div><br></div><div>Bernard I can quote several companies that are doing something in terms of sustaining the lives of at least 5 people. Take the case of <a href="http://waabeh.com" target="_blank">waabeh.com</a>, they are actually quoting figures, they actually get paid downloads from as far as Japan for Kenyan music. Ukall does have employees on payroll and though I wouldn't know whether this can go out yet, they have good prospects already. They are making good money.</div>
<div><br></div><div>I met with a Kenyan developer in Barcelona recently who said he makes 2 million a month from mobile apps. The downloads that actually make the revenue ticker go are of course not Kenyan, but external, but he is making money in the global scene. That's what we would take as an example of exporting as opposed to the importing we are used to. </div>
<div><br></div><div>So yes, Angry birds and Flappy birds can happen in Kenya.</div><div><br></div><div>What happens is that you can't expect that huge level of success but there are indeed businesses popping up.</div>
</div><div class="HOEnZb"><div class="h5"><div class="gmail_extra"><br><br><div class="gmail_quote">On Sat, Mar 22, 2014 at 3:53 PM, Bernard Kioko <span dir="ltr"><<a href="mailto:bkioko@bernsoft.com" target="_blank">bkioko@bernsoft.com</a>></span> wrote:<br>
<blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex"><p dir="ltr">Martin are these apps your quoting capable of actually sustaining a livelihood? Eg a spinlet initiative in kenya...are consumers going to buy music to a point ppl can make profits to pay rent..buy food...pay school fees etc</p>
<div><div>
<div class="gmail_quote">On 22 Mar 2014 15:32, "Martin Gicheru" <<a href="mailto:martingicheru@gmail.com" target="_blank">martingicheru@gmail.com</a>> wrote:<br type="attribution"><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex">
<div dir="ltr">What Phares and Ngigi say is true, but if you look at some applications that do not necessarily rely on govt for revenue like Spinlet in Nigeria and Ukall here locally, you will notice the fronting is mobile but they really are desktop and web apps who's delivery is mobile. <div>
<br></div><div>For example, would you say Waabeh is a mobile app? It's a mass consumption app that spans both platforms and processing is on the cloud, if such an app were to succeed and it already looks like its headed that direction, couldn't that then count as one of the successes of mobile apps? </div>
<div><br></div><div>What developing mobile apps seeks to do in this market is ensuring that the platform that most users feel at home on have content that is local that would then make Kenyan consumers start believing in local products. </div>
<div><br></div><div>So if you are using a mobile app to stream local music which you paid for via local payments, manage your chama via a mobile app or on a tablet than it will make sense for the corporates to also think mobile first when delivering services. Think microinsurance data collection, govt is the biggest client but let's not forget we have a growing enterprise that seeks to be seen to be successful and cool.</div>
<div><br></div><div>Regards,</div><div>Martin Gicheru<br><div class="gmail_extra"><br><br><div class="gmail_quote">On Sat, Mar 22, 2014 at 3:02 PM, Agosta Liko <span dir="ltr"><<a href="mailto:agostal@gmail.com" target="_blank">agostal@gmail.com</a>></span> wrote:<br>
<blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex"><div dir="ltr"><div>John<br><br>What you are talking about (govt supporting mobile apps) only works in labs and incubator<br>
<br>Real world ... Please re-look at Ngigi and Phares arguments<br><br></div>Thanks<br></div><div class="gmail_extra">
<br><br><div class="gmail_quote"><div><div>On Sat, Mar 22, 2014 at 2:47 PM, Bernard Kioko <span dir="ltr"><<a href="mailto:bkioko@bernsoft.com" target="_blank">bkioko@bernsoft.com</a>></span> wrote:<br></div>
</div><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex"><div><div>
<p dir="ltr">Ngigi I agree with you.</p>
<div class="gmail_quote"><div><div>On 22 Mar 2014 14:21, "Ngigi Waithaka" <<a href="mailto:ngigi@at.co.ke" target="_blank">ngigi@at.co.ke</a>> wrote:<br type="attribution"></div></div><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex">
<div><div>
<div dir="ltr"><div><div><div><div>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.<br>
</div><br>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.<br><br></div>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.<br>
<br>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.<br>
<br></div>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.<br>
<br></div><div>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.<br><br>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.<br>
<br></div><div>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.<br><br></div><div>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.<br>
<br>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.<br>
<br></div><div>Regards<br></div><div>Waithaka Ngigi<br></div></div><div class="gmail_extra"><br><br><div class="gmail_quote">On Sat, Mar 22, 2014 at 1:30 PM, Phares Kariuki <span dir="ltr"><<a href="mailto:pkariuki@gmail.com" target="_blank">pkariuki@gmail.com</a>></span> wrote:<br>
<blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex"><div dir="auto"><div>John,</div><div><br></div><div>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. </div>
<div><br></div><div>Most mobile applications are hollow at best without infrastructure. </div><div><br></div><div>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. </div>
<div>
<div><br></div><div><br>Sent from my mobile device, excuse brevity</div></div><div><div><div><br>On 22 Mar 2014, at 13:22, Dennis Kioko <<a href="mailto:dmbuvi@gmail.com" target="_blank">dmbuvi@gmail.com</a>> wrote:<br>
<br></div><blockquote type="cite">
<div>Hi Kieti,<div>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? </div>
<div>
<br></div><div>See our drift, government should be removing barriers and improving service delivery for all. </div><div><br></div><div>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. <br>
<div><br>On Saturday, 22 March 2014, John Kieti <<a href="mailto:jkieti@gmail.com" target="_blank">jkieti@gmail.com</a>> wrote:<br><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex">
<div dir="ltr"><div><div>Phares, Ngigi, Conrad<br><br></div>Your focus and preference for server side and
enterprise desktop mode solutions is very much appreciated.<br><br>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. <br><br>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!<br>
<br></div><div>That said, what would you rather the CS did about local enterprise desktop based solutions and server side services?<br></div><div><br></div><div>Have a nice weekend.<br></div></div><div class="gmail_extra">
<br><br><div class="gmail_quote">On Sat, Mar 22, 2014 at 12:47 PM, Rad! <span dir="ltr"><<a>conradakunga@gmail.com</a>></span> wrote:<br>
<blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex">
<div dir="ltr">I'm mystified as well at this obsession with mobile apps.<div><br></div><div>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.</div>
<div><br></div><div>Looks like mobile apps will be this regime's Pashas & BPOs</div></div><div class="gmail_extra"><br><br><div class="gmail_quote"><div>On Sat, Mar 22, 2014 at 12:14 PM, Phares Kariuki <span dir="ltr"><<a>pkariuki@gmail.com</a>></span> wrote:<br>
</div><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex"><div><div><div dir="auto"><div>A fairly narrow view of the technology sector. It's not all mobile. <br>
<br>Sent from my mobile device, excuse brevity</div>
<div><br>On 22 Mar 2014, at 04:56, Grace Githaiga <<a>ggithaiga@hotmail.com</a>> wrote:<br><br></div><blockquote type="cite">
<div>
<div dir="ltr"><div><a href="http://www.standardmedia.co.ke/m/story.php?articleID=2000107530&story_title=Got-talent-Matiangi-is-looking-for-you" target="_blank">http://www.standardmedia.co.ke/m/story.php?articleID=2000107530&story_title=Got-talent-Matiangi-is-looking-for-you</a><br>
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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.<br>
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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.<br>
<br>
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.<br>
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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.<br>
<br>
KICTANetiquette : Adhere to the same standards of acceptable behaviors online that you follow in real life: respect people's times and bandwidth, share knowledge, don't flame or abuse or personalize, respect privacy, do not spam, do not market your wares or qualifications.<br>
</blockquote></div><br><br clear="all"><br>-- <br><div style="border-collapse:collapse;color:rgb(136,136,136);font-family:'Droid Sans',arial,sans-serif;font-size:13px"><div><font face="Calibri"><font><b>Regards,</b></font></font></div>
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