Georgian Cloud - a cheaper local IT solution in prospect
29 May, 2014
Georgian Cloud - a cheaper local IT solution in prospect
The state of the art Cloud Open Source technology is locally available in Georgia and at a much cheaper price than abroad. The National Agency of Public Registry, an arm of the Ministry of Justice of Georgia worked out and installed its own Cloud product and is ready to implement this service at its initial phase in other state structures. Later, this service is planned to become available to the private sector as well. One of
the key benefits of the Cloud technology is that it offers an optimal solution to information and data management when a company or organization needs extra infrastructure for temporary use. Cloud Open Source offers this temporary service at a lower cost which spares consumer companies from redundant expenses necessary for the purchase of costly equipment. According to Shota Chachkhunashvili, Deputy Chairperson of NAPR and former Chief Information Officer of this structure, this kind of infrastructure can cost USD one million or even more while organizations only need them for a short period to fulfill some quick project or a task, but when procured this technique will stay until the project is completed.
“For instance, once a year the Ministry of Education faces a peak in work load when it handles the national exams and to this end it needs extra resources, but when the exams are over the infrastructure is not used for almost an entire year. The Cloud technology, however, provides the opportunity to take an extra source from the “cloud” for as long as you need it and you pay as much as you have used. Maybe you need this technology for just a day and if you need to procure the necessary infrastructure you may spend a million because it is very expensive,” Chachkhunashvili elaborated in an interview with Georgian Journal. As a result, the layouts are significantly cut down. The Public Registry for instance, [after installing the cloud system within the organization most recently] has already witnessed the benefits: the cost for its server calculation systems maintenance shrunk ten times while the price of storage systems price reduced five times.
Chachkhunashvili underlines that NAPR did not buy this cloud solution abroad [where its basic providers are Amazon, Google, RackSpace etc.] but worked out its own product which cuts the prices down even below the foreign tariffs. For comparison, NAPR’s fixed service tariff for one hour use of one processor [or 1vCPU; 4GB RAM capacity] is 3 tetri which is almost four times cheaper than Google’s price of 12 tetri, and five times cheaper than the Amazon tariff - 16 tetri. RackSpace asks for even higher tariffs which exceed 28 tetri. On a monthly basis, NAPR asks GEL 26 for similar capacity while the Amazon, Google and RackSpace service costs exceed GEL 119, GEL 87 and GEL 201 respectively. The Georgian prices are cheaper because NAPR reimburses only the self-price of the service and does not make it commercial. However, Chachkhunashvili expects the prices to only go down when the market becomes bigger.
“They say technologies are expensive. The biggest lure of our technology is that it is cheap, besides, we made no investments in it,” he underlined, adding that Georgian businesses have already showed a high interest in the cloud product since its official announcement in March. However, NAPR is only insuring cloud service to state organizations for the moment. The point is that private companies may buy this service abroad, while this is not safe for state structures.
“Most of the state services need this service for internal use and to put this data on servers in foreign countries is not reasonable from a security and independence point of view. In case there is a problem, state services need immediate interference lest the service does not stop while it is impossible to do so from abroad. Besides, all the state databases will be allocated at one spot and we will have more tools to insure its security. Plus, the speed of local internet is much higher than the global one,” Chachkhunashvili explained.

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