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
      South Africa planning big overhaul of public sector IT - State IT Agency Sita

      South Africa planning big overhaul of public sector IT

      23 April 2026
      Usaasa's 30-year run nears its end - Communications minister Solly Malatsi. Image c/o DCDT

      Usaasa’s 30-year run nears its end

      23 April 2026
      Charge to switch on first N3 off-grid EV stations in May - Joubert Roux

      Charge to switch on first N3 off-grid EV stations in May

      23 April 2026
      Middle-class South Africa is ditching streaming for AI

      Middle-class South Africa is ditching streaming for AI

      23 April 2026
      Mythos forces South African banks onto high alert - Graham Lee

      Mythos forces South African banks onto high alert

      23 April 2026
    • World
      More organic compounds detected on Mars - Nasa Curiosity rover

      More organic compounds detected on Mars

      21 April 2026
      Adobe bets on AI agents to fend off cheaper rivals

      Adobe bets on AI agents to fend off cheaper rivals

      16 April 2026
      Google poised to lose ad crown to Meta

      Google poised to lose ad crown to Meta

      14 April 2026
      Grand Theft Data - hackers hit Rockstar Games - Grand Theft Auto

      Grand Theft Data – hackers hit Rockstar Games

      14 April 2026
      UK PM Keir Starmer declares war on doomscrolling

      UK PM Keir Starmer declares war on doomscrolling

      13 April 2026
    • In-depth
      Africa switches on as Europe dims the lights

      Africa switches on as Europe dims the lights

      9 April 2026
      The biggest untapped EV market on Earth is hiding in plain sight

      The biggest untapped EV market on Earth is hiding in plain sight

      1 April 2026
      The R18-billion tech giant hiding in plain sight - Jens Montanana

      The R16-billion tech giant hiding in plain sight

      26 March 2026
      The last generation of coders

      The last generation of coders

      18 February 2026
      Sentech is in dire straits

      Sentech is in dire straits

      10 February 2026
    • TCS

      TCS+ | ‘The ISP for ISPs’: Vox’s shift to wholesale aggregator

      20 April 2026
      TCS | Werner Lindemann on how AI is rewriting the infosec rulebook

      TCS | Werner Lindemann on how AI is rewriting the infosec rulebook

      15 April 2026
      TCS | Donovan Marsh on AI and the future of filmmaking

      TCS | Donovan Marsh on AI and the future of filmmaking

      7 April 2026
      TCS+ | Vodacom Business moves to crack the SME tech gap - Andrew Fulton, Sannesh Beharie

      TCS+ | Vodacom Business moves to crack the SME tech gap

      7 April 2026
      TCS | MTN's Divysh Joshi on the strategy behind Pi - Divyesh Joshi

      TCS | MTN’s Divyesh Joshi on the strategy behind Pi

      1 April 2026
    • Opinion
      The conflict of interest at the heart of PayShap's slow adoption - Cheslyn Jacobs

      The conflict of interest at the heart of PayShap’s slow adoption

      26 March 2026
      South Africa's energy future hinges on getting wheeling right - Aishah Gire

      South Africa’s energy future hinges on getting wheeling right

      10 March 2026
      Hold the doom: the case for a South African comeback - Duncan McLeod

      Apple just dropped a bomb on the Windows world

      5 March 2026
      R230-million in the bag for Endeavor's third Harvest Fund - Alison Collier

      VC’s centre of gravity is shifting – and South Africa is in the frame

      3 March 2026
      Hold the doom: the case for a South African comeback - Duncan McLeod

      Hold the doom: the case for a South African comeback

      26 February 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • 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
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Policy and regulation
      • 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
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Afrihost Andre Joubert Derek Wilcocks Gian Visser Internet Solutions MWeb
    WhatsApp YouTube
    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

    Fibre: the backbone of South Africa's digital health ecosystem - Mweb

    Fibre: the backbone of South Africa’s digital health ecosystem

    16 April 2026
    The new way of working - an Mweb study

    The new way of working – an Mweb study

    9 February 2026
    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
    Company News
    Security by design is the channel's strongest pitch - Othelo Vieira

    Security by design is the channel’s strongest pitch

    23 April 2026
    Your brand is invisible to the AI that's choosing your competitor - Michelle Losco

    Your brand is invisible to the AI that’s choosing your competitor

    23 April 2026
    How AnyDesk is redefining remote access for African enterprises

    How AnyDesk is redefining remote access for African enterprises

    22 April 2026
    Opinion
    The conflict of interest at the heart of PayShap's slow adoption - Cheslyn Jacobs

    The conflict of interest at the heart of PayShap’s slow adoption

    26 March 2026
    South Africa's energy future hinges on getting wheeling right - Aishah Gire

    South Africa’s energy future hinges on getting wheeling right

    10 March 2026
    Hold the doom: the case for a South African comeback - Duncan McLeod

    Apple just dropped a bomb on the Windows world

    5 March 2026

    Subscribe to Updates

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

    Latest Posts
    South Africa planning big overhaul of public sector IT - State IT Agency Sita

    South Africa planning big overhaul of public sector IT

    23 April 2026
    Usaasa's 30-year run nears its end - Communications minister Solly Malatsi. Image c/o DCDT

    Usaasa’s 30-year run nears its end

    23 April 2026
    Charge to switch on first N3 off-grid EV stations in May - Joubert Roux

    Charge to switch on first N3 off-grid EV stations in May

    23 April 2026
    Middle-class South Africa is ditching streaming for AI

    Middle-class South Africa is ditching streaming for AI

    23 April 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}