A REPORT ON IGF BUSINESS ROUND TABLE
By Lorna TINGU, Ministry of Education and Sports, Uganda
28th September, 2011
Lord Errol Hotel
1.1.
Introduction
The 6th UN IGF was held in Nairobi, Kenya from 27-30 September, 2011. As part of the
activities, side events were organized to feed into the main IGF. The IGF Business Round Table
was one such event, whose focus was on Cloud Computing and mobile Internet. The Business
fraternity represented included: CISCO; Google USA; Nokia Middle East and Africa; Telekom
Kenya – Orange; Safaricom; Deloitte; MSFT; I-Way Africa; Nation Media; Njuki Services,
JKUAT and ACCESS Kenya. Other organizations were KENYA News Agency, Radio Africa,
KENIC, Kenya’s Ministry of Information and Communication, Kenya ICT Board; KENYA ICT
Action Network(KICTANet), and Ministry of Education and Sports, Uganda;
1.2.
Highlights
Ms. Grace Githaiga, on behalf of the Kenya IGF steering committee welcomed guests and
pointed out the session had been deemed as of interest by the committee, since it would allow the
Business fraternity to start discussing critical issues of cloud computing and mobile telephony.
She pointed out that cloud computing is being touted as the next business model. It is therefore
important to start understanding, and engaging, and for the business sector not be left behind. It
is also important for the sector to understand for example why they should invest in cloud
computing and mobile internet.
Mr. Patrik Faltstrom, a Distinguished Consulting Engineer, Office of the Chief Technological
Officer (CTO) CISCO Systems, Inc. Sweden congratulated the Kenya Government and all who
had contributed to the success of the IGF. He then defined Internet Governance as the
development and application of shared principles, rules, shared norms and decision making
procedures and programs that shape the evolution of the internet. On the history of Internet
Governance he said that when the internet was introduced in 1980s, it was a specific type of
technical management of the global core resources of internet namely domain names, IP
addresses, and internet protocol. However, in the current context, more innovations have come
up.
He pointed out that multistakeholders’ main goals are to make business and grow themselves.
Therefore the technical community and governments should be able to work together and raise
issues on what the providers are doing and what needs to be done for the benefit of the society.
He further noted that fiber is now available in Kenya and called on the community to be creative,
innovative and maximize benefits from this development for example job opportunities,
education and social economic development. He said that whether there is a monopoly or
competition, there is need for communication of information to the community.
1
According to Nasser Kettani, MICROSOFT Regional Technology Officer Middle East and
Africa, the technology/policy and innovation engineers at times do not think of the implications
of new innovations. There is always a need to engage in communication of information. He
briefly took the participants through the history of cloud computing which he said is a service
rather than a product where shared resources, software and information are delivered to a
computer as a utility over a network or through the internet. Cloud computing is performed on a
set of devices namely phone, tablet, PC to access information/data stored elsewhere in a cloud.
This means that a company utilizing a cloud does not have to buy software or equipment which
brings a cost reduction. Resources can then be moved to focus on the core business.
Kettani further explained that cloud computing is not new because every time we use email we
are using the cloud. “When you use cloud computing, you do not need to make purchases,
somebody does it for you; therefore important resources could be turned for core business”. On
the business perspective, there are opportunities for instance self motivation, infinity power,
infinity storage for small or large businesses. On challenges of cloud computing, he advised that
one should look for transparency of the provider of the cloud, security and privacy. Ask yourself
whether you trust the provider to keep say your transactions on their data, and whether there are
policy and regulatory requirements. Ask whether there are policies that allow privacy of stored
data.
Radio Africa journalist, James Mbugua expressed fears that some customers would prefer to
keep data in the local registry than keep it in the clouds out there because they were not sure who
owned the data. He also wondered what would happen in case the authorities for example
government or courts needed to access the data on a server and who gives it to them.
In response, Kettani said there are companies that are not registered yet they are doing business.
The important thing is to inquire whether the vendors you are about to engage are transparent
and ask for their policy and safety of information. For policy makers, there is an issue of how
much should be regulated. And this is a question that must be debated.
Marc Crandall, Senior Manager Global Compliance at Google explained that the customers own
their data. Therefore the authority to release data is between the customer and those who want
the data. In the case of jurisdiction, it depends on the given country law. In cloud computing one
decides what information to keep in the cloud and that to be shelved. There are opportunities of
storage, networking, and online packages that address the peak. It is anticipated that prices will
decrease as a result of increase in customers of the cloud.
A question was raised on what action the provider would take if data was required in another
country. In response, Crandall explained that this also depended on the courts exercising
jurisdiction in the given country. In Kenya, the government can access data if there is an
investigation and where bilateral agreements have been signed with other states. United States
laws do not allow any body to access data without the owner’s permission. Governments have to
enact laws and follow legal procedures in order to access data and this vary from country to
country.
2
Ms.Catherine Ngahu, Chair of Kenya ICT Board, thanked the business fraternity for contributing
to Kenya IGF, and encouraged use of cloud computing as well as investing in the peak period
usage. She emphasized efficiency to earn confidence of clients and attractive prices.
Mr. Kenneth Munyi of IwayAfrica pointed out that the issue of security remains primarily
important and there is need to eliminate the risk and exposure we see in Cloud computing.
Microsoft, Google, Amazon have made efforts to reduce the risk. Microsoft has inbuilt security
systems. Microsoft minimizes risks at the data center by storing the same data in different
centers/servers. Data is not stored on one machine, data is reproduced in multiple centers for
speed, security and back-ups in case the center breaks down.
Another question raised was on how providers concerned with data could guarantee not selling
the data to a 3rd party (for analytics to draw conclusions on markets, internet usage etc), and
whether there was an agreement on privacy policy about the data.
In response, Kettani said that the Cloud computing concept is selling a service. Therefore there is
need for clients to research before working with the vendor. This sounded caution to clients of
the cloud computing services to be careful not to pick on fake providers.
On Mobile Internet, Mr. Nzioka Waita of Safaricom emphasized the impact that mobile internet
had made in the lives of Kenyans. He said information is power and power is nothing without
control. 22 million mobile users in Kenya use it for news, education, entertainment etc. The
Computer has come a long way starting with a mainframe and now on mobile phones one can
pocket. To a business person a mobile phone is very important today. You may invest in
infrastructure as the country continues to develop, connect users or invest as a storage provider
or in money added services on internet like content development. In the Kenya today a
consumer simply wants to consume local content than it was previously six years ago. Google is
presently developing local content, and having access to internet alone will not be enough.
Software technology development through cell phones is an investment and road to
monetization.
Waita noted that landlords now invest in real estate in urban areas, where one acre of land can be
used to build 1000 units of one bedroom houses. An innovation they are engaging in is the
mobile network for instance on banking on phone to pay rent fashioned along the M-Kodi
(mobile rent) concept. The opportunities that lie in mobile internet are many.
Nokia representative observed that to understand the monetization of mobile phones, Nokia
carried out a research on mobile penetration and found 4 million Kenyans access internet by
mobile phones and that the indirect impact of mobile telecom section went up from 2.5 to 3%
GDP. Mobile phones stimulate business. Kenyan developers can therefore sell their services
around the world by distributing 70% - 75% as they do have access through internet. There is
need to monetize innovations. Nokia will stimulate more customers by working with other
companies in the same trade to lower prices. High prices are a barrier and fake devices are used
to rob people who use the mobiles to access information. It was pointed out that in the past,
media houses controlled and distributed content. The cost of developing content is still the same
but the provider wants to take 60% of the revenue.
3
1.3.
Recommendations and way forward















Cloud providers should be transparent, and ensure security of data processing. The prices
should be lowered in order for the community to benefit and develop.
There is a risk of breach of contract between provider of a cloud and client. Therefore
the need of putting precautions in place is necessary.
Threat, hackers, cybercrime and risk is very high so there is need for service providers to
work as a team to reduce these risks.
There is a problem of non registered service providers or fake ones who may not be
apprehended. There is need for stakeholders to come up with measures of handling this
phenomenon.
There is need for training users of Cloud computing.
There is need for transparency and dissemination of information to the public.
Big or small businesses should be encouraged to invest in Cloud computing and mobile
internet and also invest in innovation growth. Cost savings in business are seen in data
center, maintenance, security, manpower and by scale.
The future is bright with wireless internet and it is the way to go. There is need to
encourage rural/urban rich to use wireless internet. Big companies should invest in
technology to build their infrastructure.
Cost of mobiles is still too high. There is need to lower costs to encourage more
customers.
Mobile companies are minting a lot of money and not giving incentives to the users.
Industries should not shy away from internet business.
There is room for innovation, develop and grow the product infinite.
Companies in the same trade of mobiles and internet should explore collaboration to
lower prices, make it affordable, high quality, and governments should lower import
duties and VAT.
The idea on affordable devices companies should initiate and work with the ICT Board.
The Society should be encouraged to use internet for knowledge and development.
On process:
 Future engagements with the business community be held in the morning (breakfast) to
allow more business people to attend. Business persons are more open to morning
meetings.
4