Data Centre Services Boom as Internet Servers Head Home

The business of hosting of internet servers is witnessing a boost as organizations in the country have in recent times started relocating their servers from abroad.

Nigeria CommunicationsWeek investigations revealed that relocation of website servers by private organizations to Nigeria data centres has recorded some 15 percent increase over the past one year citing better understanding of connectivity, presence of international content players in Nigeria among others.

Reacting to the development, Muhammed Rudman, managing director, Internet Exchange Point of Nigeria (IXPN), said the movement can be seen with the increase of business activities of Data centre operators as well as the springing up of new commercial Data centre operators who encourage their customers to host with them by charging on local currency.

“Big Data centre operators’ charges are based on dollars which means you are expected to pay the equivalent in naira, but, these new Data centre operators charge in naira without clause of reviewing with change in foreign exchange rate,” he added.

Rudman also attributed the increase in website server relocation as well as domiciling it locally to understanding of connectivity by organization. “This means that if an organization’s server is located in the country it allows for faster service.”

He commended the efforts of office of local content under National Information Technology Development Agency (NITDA), which have resulted in relocation of Federal government ministries and agencies to Galaxy Backbone. This, he said helps to keep local traffic local.

Ike Nnamani, managing director, Medallion Communications, a Data Centre operator, agreed that their business has experienced an upsurge in the past one year, which according to him could be attributed to increase hosting activities in Nigeria by international internet content providers.

“Google has increased its hosting business in the country and another big international content provider will go live next month. Organizations doing business with them will have no option than to peer with them here,” he said.

He however lamented the concentration of hosting services in Lagos and urged for spreading of the service to other geographical locations of the country.

“The closer the content is to the user, the better the user experience and more efficient service delivery. It is against this back drop that we at Medallion is extending this infrastructure to other geo-political locations of the country to offer organizations in those areas better user experience,” he added.

Engr. Sam Adeleke, chief executive officer of Steineng Nigeria Ltd urged Data centre operators to consider multiplicity of location of server.

“Multiplicity of location of server is where most of the hosting companies abroad provider multiple location in case there is disaster in one location they will move to another location without their customers suffering downtime.

He added that continuity of business in Nigeria is not certain because of harsh business environment.

” Suggesting Galaxy backbone as the only alternative is risky because in as much as it is owned by government there is no guarantee that it will not collapse one day, as government is not good business man,” he said.