Jio Cloud PC: Will it be a game changer for small and medium businesses?

Analysts believe India would finally usher in the home broadband segment

In its 45th Annual General Meeting (AGM) on August 29, Reliance Industries announced a slew of investments in its telecom and fiber foray. One such announcement was the Jio Cloud PC, which hosts a virtual PC in the cloud.

The company said that Jio Cloud PC would be a game changer with users not having to upgrade their PCs or make an upfront investment, yet bringing the power of computing to every home in the country.

This will be possible through JioAirFiber, which will give fiber-like speed to wireless devices and allow users to create WiFi hotspots. Though they did not disclose the product's technical details, media reports suggest that the cloud PC will have compact hardware, like a router connecting to a display, keyboard and mouse.  

Cloud PCs, virtual PCs, or thin client PCs, use the cloud for computing and are generally in the SaaS mode.

Given these technlogies have been in existence for long, why is Mukesh Ambani's announcement making headlines?
 

Analysts believe the key differentiator will be scale and pricing. The right price could change the small and medium business landscape regarding computing power. Many analysts also said India would finally usher in the home broadband segment.

Faisal Kawoosa, the founder of research firm Techarc, said: "The cloud PC as a concept has been around for decades in the format of virtual PC or thin clients. From what has been said, this will be a game changer for digital transformation among MSMEs and SMEs. Because even though the concept was available for years, these smaller companies would still need a Chief Technology Officer or a Chief Information Officer. This will bring down the CapEx model to an OpEx format for small businesses."

OpEx is an ongoing cost incurred monthly or annually. The low or zero upfront cost associated with an OpEx purchase means that budget approval is often easier. CapEx asset purchases generally provide less flexibility. It's harder to increase or decrease capacity in this model.

Kawoosa also opined that what Reliance will offer is a complete package and pricing, which is conducive to the Indian market. "Some of the offerings that we have in India and which are being offered by multinationals have pricing that suits US MSMEs. Also, the timing of the offering from Reliance is crucial, and we are at a point where digital is all-encompassing."

Ashwinder Sethi, senior principal, Analysys Mason, believes India has become a mobile-first market when it comes to internet consumption. Reliance is now slowly making a use case for home broadband usage.

"They want to take this concept to capture the home broadband segment, especially in the hinterlands. PCs are still an expensive proposition as you move into smaller cities, so bundling of hardware and applications for the home broadband user can be a game changer," added Sethi.

Kiran Thomas, director of Reliance Jio, during the AGM, said: "This will be a game-changer for every student, every gig-worker, every small business in our country. Be it a pharmacy or a doctor's clinic, a grocer or a hotel, a consultant or a Chartered Accountant, everyone can get an affordable computer through Jio Cloud PC and JioAirFiber. Even large enterprises can use this solution. Across Reliance, we use a lot of computers. We are now replacing most of these with Jio Cloud PCs. Jio 5G can also be used to create private 5G networks for large enterprises."