The Jio-Google Cloud deal, which is not only for 5G but also to transition Reliance Retail and JioMart to the Cloud, also includes developing apps with Edge Computing.
Analysts estimate that Google Cloud's arrangement with Reliance Jio Infocomm Ltd. could generate over $1 billion in revenue, making it one of the most lucrative for the technology giant as it competes with Amazon Web Services (AWS) and Microsoft Azure.
While the financial details of the Jio-Google Cloud deal have yet to be revealed, as has the timescale for its interpretation, analysts believe the relationship will be akin to Google's deal with Deutsche Bank, which is one of the company's largest cloud deals.
The goal is to create a cutting-edge, AI-driven transformation platform that will fuel Reliance's digital goals. Consider this a multibillion-dollar expansion of the $4.5-billion investment.
Owned by Alphabet Inc. Google set aside $10 billion for India projects, beginning with a $4.5 billion investment in Jio Platforms for a 7.73 percent ownership.
Because they entail less heritage and are more tech-driven, 5G and JioMart are likely to be the initial phase of the technology implementation, he said. “The legacy business is highly customised, with a high level of complexity. It'll most likely be the last leg of the voyage".
According to Pareekh Jain, founder of Pareekh Consulting, Reliance Industries is experimenting with a multi-vendor strategy since it does not want to interact much with Amazon given the ongoing battle on the retail side. “By using a multi-vendor sourcing model, they are hedging their bet. They appear to have gotten a better deal on this from Google,” he said.
In April, Alphabet said that revenues for the Google Cloud business, which includes Google Workspace, increased 46 percent to $4 billion in the first quarter, but the company also reported a $1 billion operating loss.
