Vanguard (Lagos)

Nigeria: Cost of Technology Hinders SMEs Sector

An Information Communication Technology (ICT) company, Business Connexion (BCX), has attributed high cost of technology on why Small and Medium Enterprises (SMEs) has remained in the informal sector, just as it launched the "cloud computing services."

Executive Director, BCX Group, Mr. John Jenkins said this during the launch in Lagos.

BCX, is Africa's leading provider of Data Centre and Cloud Computing Services, manages products, services and solutions for key private and public sector organisations, parastatals and medium-sized companies.

Jenkins said, "One of the challenges SMEs face is technology and is so expensive for them as individual companies to create a formal structure of payroll for proper accounting system, so the cost of doing that is inhibitive. Often SMEs keep themselves out of the formal environment because they have to invest.

With the introduction of the cloud computing services, Nigeria will benefit local IT Services offering at a reduced operating costs, increased flexibility and rapid provisioning times. The small enterprise should understand that there is more value than cost, we give cost effective mechanism for small and medium enterprise to get into the formal sector and also offer their customers some advantage, an advantage which should have been difficult if they were in an informal environment."

He said that the company is working in with approved local resellers to develop regular releases of applications, which are high on the priority list of the Nigerian SMEs. "The company has partnered with Parallels and Rackspace, both worldwide leaders in hosting and cloud service enablements, Parallels have delivered applications to more than 12 million SMEs worldwide, using cloud services developed to simplify and quickly deliver applications to the SME."

Earlier, Chief Executive Officer of the Company, Mr. Benjamin Mophatlane "Nigeria's economy has shown robust growth over the past decade and we have noted that key drivers of growth lie squarely in the telecommunications, construction, tourism, manufacturing, Mining, agriculture and wholesale and retail trade, all areas in which our business provides ICT solutions.

"The rationale behind using a locally based Data Centre facility is to ensure customer data is kept in country, bandwidth cost is kept to a minimum, applications are not impacted by network latency and a Nigerian based service for Nigerians. We want to ensure that we provide Nigerian business big and small with secure, dependable cloud services," he said.

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