adaping is the key. If one had only specialised in web designing, change into something else. Its impossible to hoard technology. In the early nineties, only a few could use computers and nowadays its common place.

Regulation would be a solution of some sort. In some countries it is totally illegal to store customer data beyond the borders of the country. This forces the companies to setup the data centers locally.

On the other hand, some of these Kenyan companies don't understand what they are doing. What they are most interested in is to save money without really understanding the implications.

The service is being given for free in exchange of business intelligence for the service provider.

If you ask yourself, how for example does Google make money? it is largely ad driven income. So when they collect all this data,is a great source of insight on how to serve more customized and local ads.

In short, no business runs and sustains itself on the premise of "free". The source of revenue may be obscure but every business has to finance their operations in one way or another.

Some companies will not be content with the free google website offering and would still seek a local developer - there's still people making money off website development though competition is stiff.

Not quite sure how dealfish, mocality et al are going to make their money - waiting to see.

As been alluded: differentiation and innovation is key.