What does partnerships like Jio and Microsoft, Airtel & Google with existing competition in cloud services like IBM and Amazon mean for SMBs and Gaming Industry in India
Coming times are of cloud service wars in India, with new partnerships on the horizon between giants like Microsoft and Jio, Airtel and Google competing with existing providers like Amazon (AWS) and IBM. The big bang battle will have some serious impact on SMB’s and the gaming industry.
Talking at the Tech Summit event held in Bengaluru, Reliance Industries Limited Chairman and MD, Mukesh Ambani made a startling proclamation of “ten-year partnership deal” with the technology giant Microsoft. The announcement was made with an aim to support the Indian startups in digital transformations and provide them with the required solutions needed to boost the Indian economy.
Further, this partnership allows business ventures to have ingress to Microsoft-cloud services via JioFiber. Jio has connected 340 million people in the country at cheap prices and better service. Microsoft has aided several businesses in transfiguring with the help of its products like intelligent cloud and intelligent edge.
Bharti Airtel and Google Partnership
Soon after the pact between Microsoft and Jio, telecom operator Airtel and Google partnered to offer G-Suit services to Small and Medium Business. This agreement is made to accelerate digital trends in India.
Also, the CEOs of Airtel and Google Cloud exhibited ecstasy towards this deal. Talking to the press, Gopal Vittal, MD & CEO (India and South Asia), Bharti Airtel stated that,“We are pleased to further strengthen our deep relationship with Google Cloud and build products and services aimed at transforming Indian businesses.”
Thomas Kurian, CEO of Google Cloud said, “Indian companies are making a massive transformation to the cloud and we’re thrilled to partner with Airtel to support this transition.”
5G And Gaming Go Hand In Hand
Well, let’s not forget about the booming gaming industry, which will be the one among the many to benefit from this pact. Today, the two discussed topics widely are 5G and the boom in the gaming industry. One of the main reasons for its regular demand is due to the evolution of smartphones.
Today every individual has an internet-enabled smartphone, which is available at free-of-cost or at affordable rates. And soon, we’ll be seeing smartphones operating through 5G networks.
Anshuman Jaiswal, Principal, Digital Transformation at Kearney India stated his views saying that “With billions of smartphones and 5G technology, choice of low-cost subscription basis games can provide the convenient, and cheaper alternative for entertainment to billions of Indians”.
Furthermore, he added that in order to make this partnership move ahead, the companies should upgrade—, have a lucid strategy for cloud migration, CEO sponsor, and developing new cloud-based products that could transform the digital world in a much better way.
Moreover, the companies who are offering cloud services should ensure that there is incessant progress in the development of cloud-based products and services.
How Jio-Microsoft pact benefit SMEs and Gaming Industry?
In August 2019, Reliance Jio decided to set up new cloud data centers all over India in partnership with Microsoft to support small and medium enterprises. The combined efforts here is put forward to accelerate the growth of digitalization by giving small and medium business access to new technologies and several business applications.
Satya Nadella, CEO of Microsoft, stated at the event, “The combination of Jio’s leading connectivity and digital solutions with Azure, Azure AI and Office 365 will bring powerful tools and platforms for compute, storage, productivity and more to millions of businesses in the country”.
This collaboration leverage Jio to use Azure as a platform to build distinct cloud solutions that focuses on problem-solving for SMEs and promote it in among the emerging startups and businesses. This deal will aid and solve the hassles of the customers by meeting the desired demands and enhance the growth of the business.
As India being a diverse country with manifold cultures and speaking multiple languages – Jio in partnership with Microsoft decided to offer its services in multiple languages. So far, the cognitive services support 13 languages, and also have the option to add other dialects if needed, based on the requirements and needs of the business.
Cloud Service in India: Battle Of The Giants
The move to the partnership by Microsoft and Jio/Airtel and Google, along with already existed cloud services offered by AWS and IBM has opened opportunity gates for the SMBs, gaming industries and other firms. But, the reflection in the mirror says something different from its presumed opinion.
As we know that Microsoft has already made a deal to sell its services to SMBs through Jio. Few weeks after that, Google made a move by partnering with the third-largest telecom giant Airtel, by making a deal to sell its G-Suite services with the help of Airtel.
The list of services offered by G-Suite includes Gmail, Docs, Google Drive and Calendar. This deal will give Airtel the right to offer G-Suite services to its customer bases, SMBs, and other businesses.
Not only that, but also allow Google to give a stiff competition to AWS, IBM, and Microsoft Azure, who also offer cloud services in India. Further, through certain reports, it is known that Google has already has big clients in their pockets, namely Hungama, DB Corp and PaGaLGuY.
Also, the E-commerce giant Amazon is not sitting silently and watching this battle. Last year, they opened new centers in Hyderabad and New Delhi to offer Amazon CloudFront and AWS Direct Connect. And not to mention, Amazon also has big clients in their hand, namely, HDFC Life, Ashok Leyland, Aditya Birla Finance, MakeMyTrip, RedBus ICICI Bank, Whirlpool and L&T Infotech.
So, looking this on a larger scale, it’s evident that there will be a cut-throat contest among these rivals (Microsoft-Jio vs Airtel-Google vs Amazon vs IBM). Additionally, there will be clashes in terms of pricing and rates offered to SMBs and other businesses.
According to Gartner survey reports, the revenue forecast for SaaS showed an upscale curve from USD 204 million in 2018 to USD 251 million in 2019 to USD 313 million in 2020.
However, the move to shift digitally would lead to additional costs, where companies need to spend more on safety and security aspects to safeguard the content and information of the clients.