Amazon Empire is expanding its reign to a LOSS making Telecom industry!
To DESTROY Reliance, Amazon's buying stake in Vi (Vodafone Idea)
Why BUY a company that's drowned in DEBT?
Let's unravel this mystery👇🏻🧵
To DESTROY Reliance, Amazon's buying stake in Vi (Vodafone Idea)
Why BUY a company that's drowned in DEBT?
Let's unravel this mystery👇🏻🧵
Amazon has been hovering around Vodafone Idea (VI) to acquire a stake in the debt-ridden company.
VI has been trying to raise Rs.25,000 Cr for almost 3 years now.
And Amazon is ready to give VI a makeover by looking to invest around Rs.20,000 Cr.
VI has been trying to raise Rs.25,000 Cr for almost 3 years now.
And Amazon is ready to give VI a makeover by looking to invest around Rs.20,000 Cr.
It all started with Facebook buying a stake in Jio, followed by Google in Airtel and now probably Amazon in VI.
Why are these tech giants going all mushy over the Indian telecoms?
Especially at a time when they are reeling under financial stress?
Let's snoop around…
Why are these tech giants going all mushy over the Indian telecoms?
Especially at a time when they are reeling under financial stress?
Let's snoop around…
If at all there's anything that has increased apart from inflation over the past 2 years, it's our usage of digital channels.
Most of us now work, play, socialize and communicate through digital channels.
Most of us now work, play, socialize and communicate through digital channels.
Be it Google Meet, Valorant, Tinder or social media.
And telecom companies have been the unsung heroes.
They have become more essential than ever.
It is almost unimaginable to do most things without the services provided by them.
And telecom companies have been the unsung heroes.
They have become more essential than ever.
It is almost unimaginable to do most things without the services provided by them.
And that my friend, makes them a very attractive business.
But this is not it.
Let's dig in deeper..
But this is not it.
Let's dig in deeper..
You see, telecoms collect a large amount of data.
Be it your mobile phone usage, call records, browsing history👀, billing information, social networks etc.
All your phone and online activity.
Be it your mobile phone usage, call records, browsing history👀, billing information, social networks etc.
All your phone and online activity.
With 1.2 billion telecom users in India, you can only guess the volume of data being generated.
And with huge data, comes huge infrastructure costs.
Operating data centres or any IT infrastructure for that matter is very costly and energy-intensive.
And with huge data, comes huge infrastructure costs.
Operating data centres or any IT infrastructure for that matter is very costly and energy-intensive.
How convenient it would have been if there was a way to make all these operations online too?
Well, here's where our knight in the shining armour comes in. "The Cloud".
Well, here's where our knight in the shining armour comes in. "The Cloud".
Cloud refers to servers (computers) that are accessed over the Internet, remotely.
And cloud computing is the delivery of computing services—like storage, software, and analytics—over the Internet.
Now cloud provides way more benefits than physical infra.
And cloud computing is the delivery of computing services—like storage, software, and analytics—over the Internet.
Now cloud provides way more benefits than physical infra.
In terms of scalability, lower costs, fault tolerance, high performance - you name it.
Telecoms have already made life a lot easier, faster and more accessible.
And with the cloud, it's time to digitize the entire business.
Telecoms have already made life a lot easier, faster and more accessible.
And with the cloud, it's time to digitize the entire business.
But not all companies have the expertise or resources to set up a cloud infrastructure.
That is where Cloud Service Providers (CSPs) come into play.
The most common ones are Google Cloud, Amazon's AWS and Microsoft's Azure.
That is where Cloud Service Providers (CSPs) come into play.
The most common ones are Google Cloud, Amazon's AWS and Microsoft's Azure.
See the best part about the cloud is that it offers multiple services but you only pay for those which you use.
So for example, Airtel Business:
So for example, Airtel Business:
Airtel's Information and Communications Technology service provider arm is in a strategic collaboration with AWS that helps businesses digitize themselves.
They provide services like database storage, migration to the cloud, and Content Delivery networks among others.
They provide services like database storage, migration to the cloud, and Content Delivery networks among others.
Most CSPs are also equipped with analytics tools.
So they help their users in many ways:
1. They generate meaningful insights;
2. Security Hubs that can help protect an organization's assets;
So they help their users in many ways:
1. They generate meaningful insights;
2. Security Hubs that can help protect an organization's assets;
3. IoT services, advanced ML, AI tools and various APIs to help develop Web and Mobile apps.
So you see, the cloud can completely revolutionize and digitize any business.
So you see, the cloud can completely revolutionize and digitize any business.
Now Amazon isn't just an e-commerce platform.
Its cloud services arm AWS helps drive its profits.
According to a report, AWS has almost 41% of the cloud market share.
And it accounts for 16% of Amazon's total revenue.
Its cloud services arm AWS helps drive its profits.
According to a report, AWS has almost 41% of the cloud market share.
And it accounts for 16% of Amazon's total revenue.
Amazon's first choice was Airtel since it had already a strategic collaboration with Airtel's business and wanted to invest over $2 billion in telecom.
But the deal didn't go through.
But the deal didn't go through.
With Facebook and Google already picking their favourites, Amazon seems to be going for the next best one.
Its interest in VI is particularly for its data centres and fibre network.
You see, Amazon wants to penetrate deep into India.
Its interest in VI is particularly for its data centres and fibre network.
You see, Amazon wants to penetrate deep into India.
Its e-commerce arm has already made its mark.
Its payment gateway is gaining traction.
And if this deal with VI goes through, it will seal the deal for Amazon.
Why? Data.
With more data in its bucket, it can cater to the consumer market more accurately.
Its payment gateway is gaining traction.
And if this deal with VI goes through, it will seal the deal for Amazon.
Why? Data.
With more data in its bucket, it can cater to the consumer market more accurately.
But with the data protection and localization laws becoming more stringent, will it be as easy for Amazon to play around with data?
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