AccessKenya embarks on data centre expansion

By Macharia Kamau

AccessKenya has injected Sh5 million in upping the capacity of its data centre.

This is in line with expectations that increased uptake of ICT in the country will see growth in its information technology business.

The fund is a re-investment into the storage facility that was initially set up at a cost of Sh15 million.

The firm, initially an Internet Service Provider, has been diversifying its product portfolio to beat competition, especially from mobile operators that have diversified to Internet service provision. This has significantly eaten into the profit margins of traditional ISPs.

AccessKenya has embarked on refurbishing a recently acquired IT division as well as set up a content arm as part of its diversification drive.

Raymond Macharia, the chief technical officer said the data centre, which is housed by the firm’s IT division, will be key in revenue generation for the listed firm.

"We are looking at any business large or small with data that needs backing up. There has been an increase in the number of firms that have taken up ICT and demand for safer data storage facilities," he said.

He added that the data storage segment of the ICT sector is poised for further growth as more firms opt to outsource management of their IT infrastructure.

Excess capacity

Also to drive growth of data centres are small companies, which find the shared resource affordable as opposed to setting up their own data centres.

"SMEs are taking up ICT fast and the next hurdle in managing the data they process using their computers. Setting up a back facility is not an option for them because of the cost," said Macharia.

"Manual back ups are also not reliable because a system can crash before the latest data additions are backed up or an IT manager can even forget to safely the day’s... there are too many hazards and its easy to loose data, which is why a third party data centre might be cheap and efficient for SMEs."

The company however has to face the fact large enterprises are deciding to set up their own data centre for their own use and leasing out excess "capacity to other companies.

Equity Bank last week said it would lease out more than 90 per cent of its Sh8 billion data centre.

The bank, which uses only eight per cent of the level four data centre, also said it would outsource its management.

The setting up and subsequent leasing of data centres by non-technology companies brings another dimension to competition that ICT firms like Access Kenya face.

AccessKenya is banking on its Internet and IT services customers to form a bulk of its clients on the data centre.