New Delhi: Google Cloud could potentially earn over $1 billion in revenue from its deal with Reliance Jio Infocomm Ltd., analysts said, making the partnership one of the most lucrative for the technology giant as it looks to take on rivals Amazon Web Services (AWS) and Microsoft Azure.
While the financial details of the
Jio-Google Cloud deal haven’t been disclosed nor the timeline for its interpretation, analysts peg the partnership as similar to Google’s deal with Deutsche Bank—which is among the biggest cloud deals for the Mountain View, California-based company.
“The goal is to build a modern and AI-driven transformation platform that’s much needed at Reliance to power its digital ambitions. Think of this as a multi-billion-dollar extension of the original $4.5-billion investment,” said Ray Wang, founder of Constellation Research, Inc.
Last year, Alphabet Inc-owned Google
earmarked $10 billion for investments in India and began by
putting in $4.5 billion in Jio Platforms for a 7.73% stake.
“The deal will rank among Google largest cloud deals, next to customers like Deutsche Bank. With that, you get an implicit sense of the scale,” said Tom Reuner, senior vice president, HFS Research.
There is no ballpark figure yet, but the best way to think about it is Google’s $4.5 billion investment in Reliance last year. “With that you get a sense of the priority but also the depth of collaboration across the various businesses of both Reliance and Google,”…