UAE firms wasting 'billions' on offshore Web hosting

Research from Buzinessware shows 91% of UAE firms host offshore, at average annual cost of AED 800 each

Tags: Buzinessware (www.buzinessware.com)United Arab Emirates
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UAE firms wasting 'billions' on offshore Web hosting Only 9% of UAE-based companies host their online content locally
By  Tom Paye Published  April 27, 2015

UAE-based companies could be losing an estimated Dh132 million annually by hosting their websites with offshore providers rather than locally, according to a research paper from Buzinessware, a Dubai-based cloud specialist.

Of an estimated 335,450 companies in the UAE, 91% are known to host offshore, at an average cost of AED 800 annually, Buzinessware said. However, local hosting packages can be found from AED 365 for the same service and data allowance, the company claimed.

"We knew there were many incentives for UAE-based companies to host their websites and Internet activities locally, but the huge amount of money that is being wasted paying offshore providers for a service that is better and more efficiently provided locally was a huge surprise," said Buzinessware CTO Anoop Sharda.

Buzinessware's survey asked a sample of IT managers and business owners how much they currently spend on their web hosting. Responses varied from AED 300 per year to AED 2,000 per year, creating an average of AED 800. For comparison, Buzinssware said that it offered local hosting for much smaller amounts.

"Multiply those savings by business and organisations across the country - not just those registered with Dubai Chamber, and you're looking at potential savings of billions of dirhams to the UAE economy, not to mention the macro-economic effects of increased employment and servicing local web hosting contributes to the economy."

Only 9% of UAE-based companies host their online content locally, the company said.

Buzinssware said that, as well as providing cost savings, local hosting offers UAE-based businesses increased security and performance.  When content accessed by local users is hosted overseas, the content must traverse expensive and under-provisioned international links, which can have a significant impact on the user experience with increased delays, the company claimed.

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