Safaricom in Sh2b investment in landmark solution

October 27, 2011
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, NAIROBI, Kenya Oct 27- Telecommunications operator Safaricom has made a Sh2 billion investment in deepening its data business with the launch of a virtual data storage solution.

The launch of the Safaricom Cloud will enable the firm to venture into data managed services, and further boost its groiwng prescene in information Technology.

Speaking during the Launch Safaricom Chief Executive Officer Bob Collymore said the launch of cloud computing services has been made possible through a raft of partnerships between Safaricom, Seven Seas Technologies as the integration partner, global networking leader Cisco and EMC², which has built a name worldwide for its expertise in building Cloud infrastructure.

“This launch means a great deal for us and shows that the partnerships we have built pack great strategic potential and value for our customers. With this move, we have solidly positioned ourselves as the go-to provider for cost-efficient and secure corporate data solutions of scale and impact in this market,” Collymore said.

Cloud computing is a style of computing in which scalable and elastic IT-enabled capabilities are delivered as a service to external customers using Internet technologies. It is an example of what are called managed services in the trade.

These refer to a suite of corporate data services that an increasing number of companies and organizations prefer to out-source to companies with better expertise in these areas. This then frees up the organization’s resources which can then be deployed fully on core business.

Collymore said Cloud computing is gaining traction in corporate Kenya as they race to cut the rising technology costs and operators say firms can cut their IT expenditure by 30 percent.

“We believe that the full potential of enterprise data services will not be tapped unless we deploy world class solutions to match corporate and public sector requirements and we are focused together with our partners on achieving this end through an unmatched Cloud computing offering,” he said.

Safaricom has seen the bedrock of its business, voice that accounts for 67 percent of its revenues shaken to the core by the halving of calling rates since last year, and is now looking at the data business to maintain its profitability.

The Safaricom Cloud will enable clients to deliver to business requirements quickly and with unparalleled agility and provide a secure environment to protect customer’s data and.

Outsourcing IT functions provides clients with greater flexibility but also reduces the risks to the organization, while materially changing staffing profiles.

Collymore said the company will invest a further Sh1.5 billion in the venture within the next two years to further grow the business line.

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