Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Vuyani Jarana: Mobile coverage masks a deeper broadband failure

      Vuyani Jarana: Mobile coverage masks a deeper broadband failure

      30 January 2026
      SABC Plus to flight Microsoft AI training videos

      SABC Plus to flight Microsoft AI training videos

      30 January 2026
      Fibre ducts

      Fibre industry consolidation in KZN

      30 January 2026
      Watts & Wheels S1E3: 'BYD's Corolla Cross challenger'

      Watts & Wheels S1E3: ‘BYD’s Corolla Cross challenger’

      30 January 2026
      What ordinary South Africans really think of AI

      What ordinary South Africans really think of AI

      30 January 2026
    • World
      Apple acquires audio AI start-up Q.ai

      Apple acquires audio AI start-up Q.ai

      30 January 2026
      SpaceX IPO may be largest in history

      SpaceX IPO may be largest in history

      28 January 2026
      Nvidia throws AI at the weather

      Nvidia throws AI at weather forecasting

      27 January 2026
      Debate erupts over value of in-flight Wi-Fi

      Debate erupts over value of in-flight Wi-Fi

      26 January 2026
      Intel takes another hit - Intel CEO Lip-Bu Tan. Laure Andrillon/Reuters

      Intel takes another hit

      23 January 2026
    • In-depth
      How liberalisation is rewiring South Africa's power sector

      How liberalisation is rewiring South Africa’s power sector

      21 January 2026
      The top-performing South African tech shares of 2025

      The top-performing South African tech shares of 2025

      12 January 2026
      Digital authoritarianism grows as African states normalise internet blackouts

      Digital authoritarianism grows as African states normalise internet blackouts

      19 December 2025
      TechCentral's South African Newsmakers of 2025

      TechCentral’s South African Newsmakers of 2025

      18 December 2025
      Black Friday goes digital in South Africa as online spending surges to record high

      Black Friday goes digital in South Africa as online spending surges to record high

      4 December 2025
    • TCS
      TCS+ | How Cloud On Demand is helping SA businesses succeed in the cloud - Xhenia Rhode, Dion Kalicharan

      TCS+ | Cloud On Demand and Consnet: inside a real-world AWS partner success story

      30 January 2026
      Watts & Wheels S1E3: 'BYD's Corolla Cross challenger'

      Watts & Wheels S1E2: ‘China attacks, BMW digs in, Toyota’s sublime supercar’

      23 January 2026

      TCS+ | Why cybersecurity is becoming a competitive advantage for SA businesses

      20 January 2026
      Watts & Wheels S1E3: 'BYD's Corolla Cross challenger'

      Watts & Wheels: S1E1 – ‘William, Prince of Wheels’

      8 January 2026
      TCS+ | Africa's digital transformation - unlocking AI through cloud and culture - Cliff de Wit Accelera Digital Group

      TCS+ | Cloud without culture won’t deliver AI: Accelera’s Cliff de Wit

      12 December 2025
    • Opinion
      South Africa's skills advantage is being overlooked at home - Richard Firth

      South Africa’s skills advantage is being overlooked at home

      29 January 2026
      Why Elon Musk's Starlink is a 'hard no' for me - Songezo Zibi

      Why Elon Musk’s Starlink is a ‘hard no’ for me

      26 January 2026
      South Africa's new fibre broadband battle - Duncan McLeod

      South Africa’s new fibre broadband battle

      20 January 2026
      AI moves from pilots to production in South African companies - Nazia Pillay SAP

      AI moves from pilots to production in South African companies

      20 January 2026
      South Africa's new fibre broadband battle - Duncan McLeod

      ANC’s attack on Solly Malatsi shows how BEE dogma trumps economic reality

      14 December 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » In-depth » Is a price war looming in local Web hosting?

    Is a price war looming in local Web hosting?

    By Editor2 June 2010
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Gian Visser

    Is a price war looming in the local Web hosting market? It appears that big changes may be coming that could put a smile on the faces of executives at SA companies, especially those running small and medium enterprises.

    SA consumers and businesses have long complained about the high cost of hosting their websites in the country versus the sometimes negligible costs of offshore hosting.

    Now, whisperings in the industry suggest the situation may be about to change, with Internet service providers saying hosting costs are too high and must come down dramatically.

    Talk of much lower costs will be music to the ears of businesses, especially small companies, many of which have been forced to host their servers in Europe or even the US to save costs. This is far from ideal, as international bandwidth tends to be slower and less reliable than local bandwidth.

    But prices in some parts of the world have fallen to such an extent that service providers charge less than €10/month — and sometimes as little as €5/month — to provide basic but unlimited website hosting on shared servers.

    In SA, by contrast, service providers tend to charge incrementally for each service offered. They also charge clients for data transferred, usually measured by the megabyte.

    Though SA finally has much cheaper fixed-line broadband thanks to dramatically reduced per-gigabyte charges and the recent introduction of uncapped services, hosting costs have remained stubbornly high.

    It’s a problem that hasn’t escaped the attention of MWeb business division, whose GM, Andre Joubert, says prices will have to come down.

    MWeb shook up the local market earlier this year when it introduced the first relatively affordable uncapped broadband offerings delivered over Telkom’s fixed-line network.

    “The big capacity we’ve bought on the ADSL side will flow directly into the hosting side,” says Joubert. “The benefits have to flow through to our customers.”

    Joubert says the big corporate customers are already seeing the benefits of lower bandwidth costs. But lower prices haven’t yet been passed on to small businesses and individuals hosting their websites locally.

    Though he expects prices to come down sharply — and to do so soon — Joubert warns that they may never reach the levels they have in Europe and the US.

    He says service providers in those markets have the scale that allows them to offer prices that may never be possible in the SA context, simply because the country doesn’t have the same level of demand.

    However, hosting costs “will follow connectivity and bandwidth costs downwards”, Joubert says.

    Afrihost CEO Gian Visser agrees. He says the hosting community in SA has long had a mindset that it cannot compete on price with international service providers. He says this has to change.

    “We fell into this trap as Afrihost,” Visser says. “Our mindset was to compare ourselves to our rivals in SA and it was kind of accepted we could never compete with the overseas guys.”

    Though SA will never quite match the prices that are charged by European and US service providers, Visser says local hosting providers can match the sort of services, like storage space, offered by overseas companies, and at prices that aren’t dramatically out of kilter.

    “We have the same hardware and software and there’s no reason why we shouldn’t be competitive,” he says.

    Visser says the approach to the SA market will change. He compares local hosting providers to people who said no athlete would ever run a mile in under four minutes.

    “They said it was biologically impossible, that we didn’t have enough capacity in our lungs, and that our bones weren’t strong enough,” he says. “Then Roger Bannister came along and soon hundreds of people were running sub-four-minute miles.

    “We’ve been looking at this the wrong way. We need the same mentality we have in ADSL bandwidth, where volumes have driven down prices.”

    However, not everyone is convinced there’ll be big price drops in local hosting costs. The corporate market, in particular, shouldn’t expect prices to fall dramatically, says Internet Solutions MD Derek Wilcocks. He says skyrocketing electricity prices are largely offsetting any benefits from reductions in local bandwidth costs.

    Derek Wilcocks

    Wilcocks says between 20% and 40% of what clients pay for a dedicated hosting service is related to bandwidth. So, if bandwidth prices come down 50%, they can expect a 10% to 20% reduction in hosting charges.

    In shared server environments, such as those used by European hosting providers to offer cut-rate prices, falling bandwidth costs have a much bigger impact on overall costs, he says. So, retail consumers can expect to benefit more.

    Local bandwidth prices are falling by about 10-12%/year, Wilcocks says. However, rising electricity tariffs could negate the benefits for companies with dedicated hosting infrastructure.

    “Power can be 20% or 30% of your total cost,” he says. “If you are not hosted in a shared environment, if you have your own server, then power is a big cost factor.”

    Even though electricity prices have risen substantially in the past two years, Wilcocks says Internet Solutions’ hosting charges have remained flat or fallen slightly, mainly driven by falling bandwidth prices.  — Duncan McLeod, TechCentral

    • Subscribe to our free daily newsletter
    • Follow us on Twitter or on Facebook


    Afrihost Andre Joubert Derek Wilcocks Gian Visser Internet Solutions MWeb
    WhatsApp YouTube Follow on Google News Add as preferred source on Google
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleEskom rakes in huge profit
    Next Article SA set to abandon digital TV standard (corrected)

    Related Posts

    AOL is shutting down dial-up internet - Telkom beat it by years

    AOL is shutting down dial-up internet – Telkom beat it by years

    19 August 2025
    Anton Tkachenko

    Ronnie Apteker to release new film on Ukraine

    15 August 2025
    Cell C CEO Jorges Mendes

    Cell C CEO vows to defend MVNO leadership

    14 May 2025
    Company News
    Huawei turns 25 in South Africa, celebrates with major device discounts

    Huawei turns 25 in South Africa, celebrates with major device discounts

    30 January 2026
    Phishing has not disappeared, but it has grown up - KnowBe4

    Phishing has not disappeared, but it has grown up

    30 January 2026
    Smartphone affordability: South Africa's new economic divide - PayJoy

    Smartphone affordability: South Africa’s new economic divide

    29 January 2026
    Opinion
    South Africa's skills advantage is being overlooked at home - Richard Firth

    South Africa’s skills advantage is being overlooked at home

    29 January 2026
    Why Elon Musk's Starlink is a 'hard no' for me - Songezo Zibi

    Why Elon Musk’s Starlink is a ‘hard no’ for me

    26 January 2026
    South Africa's new fibre broadband battle - Duncan McLeod

    South Africa’s new fibre broadband battle

    20 January 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Vuyani Jarana: Mobile coverage masks a deeper broadband failure

    Vuyani Jarana: Mobile coverage masks a deeper broadband failure

    30 January 2026
    TCS+ | How Cloud On Demand is helping SA businesses succeed in the cloud - Xhenia Rhode, Dion Kalicharan

    TCS+ | Cloud On Demand and Consnet: inside a real-world AWS partner success story

    30 January 2026
    Huawei turns 25 in South Africa, celebrates with major device discounts

    Huawei turns 25 in South Africa, celebrates with major device discounts

    30 January 2026
    SABC Plus to flight Microsoft AI training videos

    SABC Plus to flight Microsoft AI training videos

    30 January 2026
    © 2009 - 2026 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}