Price storm brewing with affordable Cloud Tech in works
Reliance Jio Infocomm is likely to trigger another wave of price disruption – this time with its plan to roll out affordable cloud-based solutions for small and medium enterprises in partnership with Microsoft, which will also boost the country’s data centres business, analysts said.
Reliance Industries chairman Mukesh Ambani said recently that its telecom arm would offer SMEs a combination of Microsoft cloud solutions with connectivity at Rs 1,500 a month – effectively a tenth of the current cost of similar services. It plans to do so by leveraging its upcoming maze of data centres across the country that will run Microsoft’s Azure platform.
Just as “RIL’s entry into the cellular space led to mobile data explosion, its entry into the enterprise market, particularly its offerings to SMEs, will disrupt pricing and increase affordability of enterprise solutions and drive substantial adoption of data growth among small businesses who are currently not using enterprise services,” Bank of America-Merrill Lynch said in a note seen by ET.
RIL, it said, “could decide on pricing once it targets SMEs, and offerings could be a SaaS or ‘softwareas-a-service’ kind of bundle of connectivity with some hosted apps.”
Brokerage Credit Suisse said Jio would also enjoy a first-mover advantage in marketing its cloud services, especially “as it becomes difficult later for an enterprise (availing of such services) to switch its architecture suited for a different cloud services provider.”