NEW DELHI: Bharti
is unlikely to lose high end consumers in the enterprise market segment in the initial few years even as Reliance
is planning its entry in the market through its partnership with
’s Azure, Bank of America Merril Lynch said in a report.
“…we see less risk of high-end consumers moving away. This is because currently enterprise is not a price-sensitive market; instead value, reliability and experience play a pivotal role,” the brokerage said.
Airtel’s enterprise arm, Airtel Business clocked $1.7 billion in revenues for the Fiscal year 2018-19.
BoAML, however, believes RIL’s entry in the enterprise market (in partnership with Microsoft’s Azure) could disrupt this pricing and increase affordability. “We could see quite a substantial adoption of data growth as SMEs could now start using enterprise services – in turn expanding the market and benefiting all companies,” it added.
The cloud market size in India to be $1 billion, growing at 30%+ CAGR for the next few years.
Reliance Industries Ltd. chairman Mukesh Ambani said recently that its telecom arm would offer SMEs a combination of Microsoft cloud solutions with connectivity at Rs 1,500 a month – effectively a tenth of the current cost of similar services. It plans to do so by leveraging its upcoming maze of data centres across the country that will run Microsoft’s Azure platform.
“We maintain our Buy rating on RIL and Bharti (both on favorable risk-reward) and Underperform on VIL (risk of market share loss),” Bank of America Merril Lynch said.