In today’s Finshots, we talk about Jio’s new freebie and the brain behind it.

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The Story

India’s cloud storage demand is booming. And there’s plenty of evidence to back this up.

The public cloud market is set to hit $13 billion by the end of 2024. It’s already been growing at a blistering pace — 24% annually over the last three years, to be precise. And it could contribute 8% to India’s GDP (Gross Domestic Product or the value of all the goods and services the country produces) by 2026.

Naturally, Reliance has sniffed an opportunity here. And it’s not hard to see why.

Cloud storage lets people and businesses store all their data — files, photos, videos, everything, online. And Reliance’s Jio, with its 490 million users, is now the world’s largest mobile data company. Each Jio user consumes around 30 GB of data per month, and Jio’s network handles a whopping 8% of global mobile traffic.

So, in true Jio fashion, they decided to offer free cloud storage services.

At the recent Reliance Industries annual meeting, MD and Chairman Mukesh Ambani made a simple but bold announcement. Come Diwali, Jio users will get up to 100 GB of free cloud storage to securely store and access all their digital content.

And that feels like yet another disruption in the making. Just think about it. Apple charges ₹75 a month for 50 GB of iCloud storage, and Google’s 100 GB plan sets you back ₹130 a month once you max out the free limit. But Jio’s offer comes with no strings attached. It completely blows these paid subscriptions out of the water.

Sounds familiar, doesn’t it?

Remember when Jio launched 4G in 2016?

It turned the telecom industry upside down by offering free data and calls for months, building a massive user base in no time. And once the numbers were there, Jio secured partnerships with giants like Facebook and Google, who invested billions into Jio Platforms.

So, maybe we’ll see the same playbook with Jio Cloud. And by Diwali, Jio could quietly start capturing a huge chunk of the cloud storage market practically overnight.

But this time, the story might be slightly different because there’s a twist. Right now it’s not just about shaking up the cloud storage market. There’s something bigger at play here.

Enter Jio Brain, the company’s ambitious AI initiative. It aims to build artificial intelligence (AI) and machine learning models.

And here’s the thing. These models need data, lots of it. And with millions of users uploading their files to Jio’s cloud, they’ll have access to a goldmine of information — everything from user behaviour to search patterns. All this data is key to creating AI solutions that address India’s unique challenges.

Mukesh Ambani sees this as the future. His vision, “AI Everywhere for Everyone” is about democratising AI. So Reliance plans to make AI affordable for all.

And it may make sense too. Because this new strategy isn’t just about shaking things up. It’s about creating something groundbreaking.

See, right now, the AI scene is dominated by giants like OpenAI, Google, Microsoft and Amazon. But Jio’s entry could flip the script. With access to data from millions of users, Jio has the potential to drive AI innovations tailored to India’s unique needs.

Imagine AI tools designed specifically for Indian farmers, students or small businesses, all powered by data from Jio’s vast network.

Jio has already hinted that its cloud storage could lay the groundwork for AI tools that help farmers predict crop yields more accurately, assist rural healthcare workers in diagnosing diseases faster, or provide personalised learning platforms for millions of students.

So if you look at it, Jio’s free storage isn’t just a tech offering. It’s a potential game-changer for small businesses and innovation. To put things in perspective, currently, 49% of companies in India use cloud services for data infrastructure, and 40% rely on it for productivity. So, the demand is there, and Jio may be stepping in at just the right moment.

This move could also kick off a new trend in India’s cloud market. With free storage on offer, millions might dive in just like they did with Jio’s mobile plans back in 2016. It’s a tried-and-tested play ― hook users with freebies, then roll out paid options once they’re hooked. This could drive even more Indians to adopt cloud storage.

But it’s not all smooth sailing.

For starters, there are concerns about data security and privacy when a single company controls so much information. This has been a worry since the days of free Facebook and Google services.

Then, there’s the part about switching cloud providers, which isn’t exactly a walk in the park. People get comfortable with how platforms like Google Drive and iCloud operate, especially since they’re closely linked to their devices and apps. Businesses, too, have set up their entire workflows around these platforms, making any switch a potential headache.

And finally, let’s not forget the heavyweights already making waves in India’s cloud market. For context, Google Cloud overall raked in $33 billion in 2023 and finally turned a profit with $191 million after years of hefty infrastructure investments. Today, India is a key market for them and they’re actively courting Indian startups with discounts to lure them to their cloud. And Apple isn’t sitting idle either. It’s eyeing India’s growing market for iCloud and has even faced legal pushback for trying to push users exclusively into its cloud ecosystem. With India becoming one of Apple’s biggest markets, it’s betting big on expanding its cloud presence too.

So, we’ll have to wait and see if Jio’s deep pockets and bold plans can carve out a competitive edge in cloud storage, taking on Google and Apple’s years of experience.

Right now, Mukesh Ambani aims to boost Reliance’s telecom revenue to $100 billion in the coming years and double the profits. Jio is also laying the groundwork for a national AI infrastructure in Jamnagar, complete with gigawatt-scale, AI-ready data centres powered by green energy. Plus, they’re rolling out Jio PhoneCall AI, which integrates AI into every call you make.

Will Jio’s “old wine in a new bottle” trick work its magic?

Well, it’s too early to tell. Jio Cloud is still in its early days, just like India’s cloud market, which currently accounts for only 1.5% of the global public cloud space. But, as always with Jio, there are sure to be surprises along the way.

We’ll just have to see if this shiny new free cloud storage can shift Indian users’ perceptions and draw them into the Jio ecosystem, all while pushing competitors to rethink their pricing strategies.

Until then…

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