In this week’s newsletter, we talk about Jio’s new freebie, troubles with coffee production and more.
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Quote of the day 
“Know what you own, and know why you own it.” – Peter Lynch
Jio’s free storage to beat Google and Apple?
India’s cloud storage demand is booming. And there’s plenty of evidence to back this up.
The public cloud market is set to hit $13 billion by the end of 2024. It’s already been growing at a blistering pace — 24% annually over the last three years, to be precise. And it could contribute 8% to India’s GDP (Gross Domestic Product or the value of all the goods and services the country produces) by 2026.
Naturally, Reliance has sniffed an opportunity here. And it’s not hard to see why.
Cloud storage lets people and businesses store all their data — files, photos, videos, everything, online. And Reliance’s Jio, with its 490 million users, is now the world’s largest mobile data company. Each Jio user consumes around 30 GB of data per month, and Jio’s network handles a whopping 8% of global mobile traffic.
So, in true Jio fashion, they decided to offer free cloud storage services.
At the recent Reliance Industries annual meeting, MD and Chairman Mukesh Ambani made a simple but bold announcement. Come Diwali, Jio users will get up to 100 GB of free cloud storage to securely store and access all their digital content.
And that feels like yet another disruption in the making. Just think about it. Apple charges ₹75 a month for 50 GB of iCloud storage, and Google’s 100 GB plan sets you back ₹130 a month once you max out the free limit. But Jio’s offer comes with no strings attached. It completely blows these paid subscriptions out of the water.
Sounds familiar, doesn’t it?
Remember when Jio launched 4G in 2016?
It turned the telecom industry upside down by offering free data and calls for months, building a massive user base in no time. And once the numbers were there, Jio secured partnerships with giants like Facebook and Google, who invested billions into Jio Platforms.
So, maybe we’ll see the same playbook with Jio Cloud. And by Diwali, Jio could quietly start capturing a huge chunk of the cloud storage market practically overnight.
But this time, the story might be slightly different because there’s a twist. Right now it’s not just about shaking up the cloud storage market. There’s something bigger at play here.
Enter Jio Brain, the company’s ambitious AI initiative. It aims to build artificial intelligence (AI) and machine learning models.
And here’s the thing. These models need data, lots of it. And with millions of users uploading their files to Jio’s cloud, they’ll have access to a goldmine of information — everything from user behaviour to search patterns. All this data is key to creating AI solutions that address India’s unique challenges.
Mukesh Ambani sees this as the future. His vision, “AI Everywhere for Everyone” is about democratising AI. So Reliance plans to make AI affordable for all.
And it may make sense too. Because this new strategy isn’t just about shaking things up. It’s about creating something groundbreaking.
See, right now, the AI scene is dominated by giants like OpenAI, Google, Microsoft and Amazon. But Jio’s entry could flip the script. With access to data from millions of users, Jio has the potential to drive AI innovations tailored to India’s unique needs.
Imagine AI tools designed specifically for Indian farmers, students or small businesses, all powered by data from Jio’s vast network.
Jio has already hinted that its cloud storage could lay the groundwork for AI tools that help farmers predict crop yields more accurately, assist rural healthcare workers in diagnosing diseases faster, or provide personalised learning platforms for millions of students.
So if you look at it, Jio’s free storage isn’t just a tech offering. It’s a potential game-changer for small businesses and innovation. To put things in perspective, currently, 49% of companies in India use cloud services for data infrastructure, and 40% rely on it for productivity. So, the demand is there, and Jio may be stepping in at just the right moment.
This move could also kick off a new trend in India’s cloud market. With free storage on offer, millions might dive in just like they did with Jio’s mobile plans back in 2016. It’s a tried-and-tested play ― hook users with freebies, then roll out paid options once they’re hooked. This could drive even more Indians to adopt cloud storage.
But it’s not all smooth sailing.
For starters, there are concerns about data security and privacy when a single company controls so much information. This has been a worry since the days of free Facebook and Google services.
Then, there’s the part about switching cloud providers, which isn’t exactly a walk in the park. People get comfortable with how platforms like Google Drive and iCloud operate, especially since they’re closely linked to their devices and apps. Businesses, too, have set up their entire workflows around these platforms, making any switch a potential headache.
And finally, let’s not forget the heavyweights already making waves in India’s cloud market. For context, Google Cloud overall raked in $33 billion in 2023 and finally turned a profit with $191 million after years of hefty infrastructure investments. Today, India is a key market for them and they’re actively courting Indian startups with discounts to lure them to their cloud. And Apple isn’t sitting idle either. It’s eyeing India’s growing market for iCloud and has even faced legal pushback for trying to push users exclusively into its cloud ecosystem. With India becoming one of Apple’s biggest markets, it’s betting big on expanding its cloud presence too.
So, we’ll have to wait and see if Jio’s deep pockets and bold plans can carve out a competitive edge in cloud storage, taking on Google and Apple’s years of experience.
Right now, Mukesh Ambani aims to boost Reliance’s telecom revenue to $100 billion in the coming years and double the profits. Jio is also laying the groundwork for a national AI infrastructure in Jamnagar, complete with gigawatt-scale, AI-ready data centres powered by green energy. Plus, they’re rolling out Jio PhoneCall AI, which integrates AI into every call you make.
Will Jio’s “old wine in a new bottle” trick work its magic?
Well, it’s too early to tell. Jio Cloud is still in its early days, just like India’s cloud market, which currently accounts for only 1.5% of the global public cloud space. But, as always with Jio, there are sure to be surprises along the way.
We’ll just have to see if this shiny new free cloud storage can shift Indian users’ perceptions and draw them into the Jio ecosystem, all while pushing competitors to rethink their pricing strategies.
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Is the world running out of coffee?
Coffee isn’t having the best of times these days. The world consumes around 2 billion cups of it every day, but the production is only dropping. And if the demand for coffee keeps rising as it has over the past three decades, consumption could double by 2050, while half of the land ideal for growing it may no longer be suitable. Naturally, you can see why prices are shooting up.
And if you think that this doesn’t matter to you because India loves chai (tea), think again! Sure, we may drink 30 cups of tea for every cup of coffee, but India still gulps down 11 million cups of coffee every day. That’s no small feat, especially when less than a third of the population are coffee drinkers. And let’s not forget that India is the eighth-largest coffee producer in the world. So we are going to feel the pinch too.
But why are coffee prices rising in the first place?
Well, as you’ve probably guessed already, the real culprit behind it all is climate change. And it’s hitting all the major coffee-producing nations hard.
Take Brazil, for instance — the world’s coffee giant, responsible for 40% of the global supply. In 2021, a frost wiped out coffee plantations the size of Mauritius. And now, erratic weather, including droughts, insufficient rain and extreme heat, continues to wreak havoc. Coffee farmers are left with smaller-than-usual beans. And the arabica variety of coffee has been hit really bad. This is the stuff that most people sip at cafés. Brazil produces it in abundance, but these climate swings are shrinking its output.
So, naturally, we look to Vietnam, the second-largest coffee producer, which specialises in robusta coffee beans. It’s the variety used in instant coffee, and thankfully, it’s more resilient to heat and pests. Plus, it’s cheap and mass-produced, making it the go-to for multinational companies that use coffee beans for instant coffee, soft drinks and even pharmaceuticals. So, while it may not be as fancy as arabica, robusta is kind of the world’s backup plan right now.
But here’s the thing. Vietnam isn’t immune to climate troubles either. The country’s been dealing with prolonged dry spells, and a recent typhoon has raised fears that coffee production will take a hit. And even though Vietnam’s robusta coffee is more weather-resistant, the country isn’t willing to gamble with unpredictable climate shifts. So, it’s making a move that’s crushing the coffee industry’s last hope. It’s shifting away from coffee production and turning to a rather unusual alternative ― a pungent fruit called durian.
The logic is simple. Global demand for this garbage-smelling, yet oddly tasty fruit has skyrocketed — up 400% year on year. All thanks to a craze fuelled by China.
You see, China’s middle class is growing, and more people can now afford durians, which are far from cheap. For context, a durian from Thailand, China’s main supplier, sells for about $20. And another prized variety from Malaysia can fetch up to three times that price! Not only that. Durians have also become a popular gift among friends and family in China.
So, Vietnamese farmers are ditching coffee and jumping on the durian bandwagon to cash in on this booming market.
And you can’t blame them either. Growing and selling durians can be five times more profitable than coffee. So, coffee’s last hope isn’t really much of a hope anymore.
The end result is that this reduced coffee output from two of the biggest coffee suppliers is translating into rising prices. In fact, just a few months ago, coffee prices on the commodity exchange shot up, especially for the robusta variety, which saw its biggest spike since 2010.
So, what’s the solution, you ask?
Well, one option gaining traction is synthetic or no-bean coffee alternatives. Companies are turning to biotechnology and food science to brew up coffee replacements that don’t come with all the climate baggage.
These alternatives are made from things like chickpeas or “upcycled” agricultural waste, such as date seeds. Some even use lab-grown cells from real coffee plants to mimic the taste and feel of your regular cup of joe.
And since these substitutes are sustainable and don’t rely on deforestation to plant more coffee trees, they might just be the future of your morning brew. Just a heads up though. Your coffee could start tasting a little different.
But that’s more of a workaround than a solution, no?
That’s exactly why some countries, like the US, Argentina, Uruguay and China, are thinking ahead by taking advantage of warmer temperatures to start growing coffee in new regions. While that’s promising, it likely won’t be enough to replace the output of the world’s top coffee producers.
So the real solution may actually be tackling climate change head-on. By keeping temperatures in check, we can protect wild coffee species that could help revive production. You see, there are over 120 varieties of coffee in the world, but we mostly drink just two — arabica and robusta. But these other wild varieties hold potential for crossbreeding to create more resilient strains that can withstand pests, diseases and changing climates.
But there’s still a catch. Climate change is threatening those wild coffee varieties too.
And even if we develop new varieties, there’s still a long road ahead for coffee farmers. Coffee bushes take three to four years to bear fruit, and new crops require more labour and support.
So, while backup solutions like no-bean coffee and new coffee-growing regions may hold us over for now, the real key to safeguarding coffee’s future is addressing climate change.
And let’s hope we do. Because the last thing we need is a world without coffee.
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Today’s discussion 
: Accidental inventions
As a young child, Howard Fielding was fascinated by his father’s latest unusual creation. Little did he know that soon just like him the rest of the world would also be hooked on popping the bubbles on a sheet of dotted plastic.
Yes, we are talking about bubble wrap!
Let’s rewind—back in 1957. Two engineers, Alfred Fielding and Marc Chavannes, were experimenting with different materials to produce textured wallpaper. So, they decided to seal two shower curtains together through a heat-sealing machine. The process caused small air bubbles to form and the new sheet couldn’t be used as a wallpaper. But the duo saw more to it.
Turns out that those air-filled bubbles provided excellent cushioning.
Soon Alfred and Marc sought other avenues to utilise it. And, in 1960, with a spark of genius, they pivoted from wallpaper to packaging and launched Sealed Air Corporation. They hit it big when IBM chose their air-filled sheets for packaging and protecting the first IBM 1401 computers.
This bubble wrap didn’t just bubble up in the shipping world. It started popping up everywhere. And that’s how your icon of stress relief was born.
So the next thing you see a bubble wrap you now know that it was the sweet result of a failed experiment!
Answer of the day: Jio is the only network in India that offers VoLTE technology for voice calling on all of its sites.
And that’s all for today folks!
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