Ola Breaks Ties with Microsoft Azure, Betting Big on Krutrim AI for Cloud Services
Ola's CEO Bhavish Aggarwal Announces Breakup with Microsoft Azure, Signals Bold Shift to Krutrim Cloud
13 May 2024
|
Neelesh Bachani
1. Ola Group of Companies, led by CEO Bhavish Aggarwal, has announced its decision to move away from Microsoft Azure and migrate its entire workload to its proprietary AI firm, Krutrim. This shift follows the removal of Aggarwal's post on "pronoun illness" by LinkedIn, which is owned by Microsoft.
2. Ola's departure from Azure, where it is one of the largest consumers, could result in a significant loss of business revenue exceeding Rs 100 crores. Despite the financial implications, Aggarwal is confident in his team's ability to successfully navigate this challenging transition.
3. This strategic move highlights Ola's focus on autonomy and control over its technological ecosystem. By leveraging its in-house AI capabilities, Ola aims to reduce dependency on external providers, foster innovation, and enhance competitiveness in the tech industry.
Bhavish Aggarwal, the founder and CEO of the Ola Group of Companies, made a significant announcement on May 11, revealing the firm's decision to sever ties with its current cloud service provider, Microsoft Azure. Instead, they plan to migrate their entire workload to their proprietary AI firm, Krutrim. This bold move comes hot on the heels of a recent incident where Aggarwal's post discussing "pronoun illness" was removed by LinkedIn, a job-search platform owned by Microsoft.
Aggarwal highlighted the motivation behind this strategic shift in a statement shared on the social media platform X (formerly Twitter). He cited the interconnectedness between LinkedIn and Microsoft and Ola's substantial reliance on Azure services as pivotal factors influencing their decision. The impending transition presents a formidable challenge, as Aggarwal acknowledged, but he expressed confidence in his team's readiness to tackle it head-on.
Industry insiders revealed that Ola ranks among the largest consumers of Microsoft's services, with the termination of this partnership potentially translating to a loss exceeding Rs 100 crores in business revenue. This financial repercussion underscores the significance of Ola's departure from Microsoft Azure and the magnitude of its commitment to Krutrim.
Apply to Xartup Fellowship Program
Get ₹1.5 Crore Technical Funding
The decision to migrate to Krutrim's cloud infrastructure signals Ola's strategic pivot towards greater self-reliance and control over their technological ecosystem. By leveraging its in-house AI capabilities, Ola aims to mitigate dependency on external providers and unlock new avenues for innovation and differentiation in the fiercely competitive tech landscape.
This move reflects broader trends within the tech industry, where companies increasingly prioritize autonomy and vertical integration to safeguard against external disruptions and maintain agility in the face of evolving market dynamics. Ola's bold stance underscores the pivotal role played by cloud infrastructure in shaping the digital strategies of modern enterprises and highlights the growing importance of proprietary technology solutions in driving sustainable growth and competitiveness.
As Ola embarks on this ambitious transition, the industry will keenly observe the outcomes and implications of this strategic realignment, which could potentially reshape the dynamics of the cloud computing market and influence the future trajectories of both Ola and its erstwhile partner, Microsoft.
Startup news delivered to your mail
Recommended for you
Paytm Loss Widens and Revenue Shrinks as it Grapples with Regulatory Clampdown
Discover 2023's 10 Hottest Upcoming IPOs
India Budget 2024: 5 Key Takeaways for Investors