- Telenor and Jotta form a new joint venture.
- The merger aims to enhance European tech sovereignty.
What happened: Telenor and Jotta join forces for local cloud
Norwegian telecommunications giant Telenor has announced a significant merger with local cloud storage provider Jotta, creating a joint venture aimed at strengthening the presence of homegrown cloud services in Europe. The new venture, which combines Telenor’s My Sky service with Jottacloud, will serve approximately 2 million active customers and is projected to generate an estimated revenue of NOK200 million ($18.9 million) in the upcoming year.
This strategic alliance is particularly timely, given the rising concerns regarding data security associated with US-based cloud providers. Telenor and Jotta are positioning themselves as viable alternatives to the dominant US hyperscalers, emphasizing the importance of offering secure and reliable cloud storage options to European consumers.
The merger has been valued at around NOK930 million, with control shared equally between Telenor and Jotta’s parent company, Hawk Infinity. The deal is expected to close in the second quarter of the year. Telenor’s CEO, Dan Ouchterlony, highlighted the ambition to build a leading international SaaS (software-as-a-service) company through this merger.
By combining their cloud storage capabilities, both companies aim to enhance their development environments and provide superior services to their customers. This strategic move is seen as a response to growing demands for local solutions amid increasing trade tensions between Europe and the US.
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Why it’s important
This merger is significant not only for the companies involved but also for the broader European tech landscape. As highlighted in a recent open letter signed by 95 European companies to EU President Ursula von der Leyen, there is a pressing need for a continent-wide strategy to bolster European tech sovereignty.
The letter advocates for the creation of the EuroStack, a comprehensive tech infrastructure encompassing semiconductors, data, and connectivity. This initiative aims to reduce Europe’s dependence on US tech giants and enhance its negotiating position in global trade.
The timing of the Telenor and Jotta merger aligns with growing consumer sentiment favoring local businesses and services, particularly in cloud computing. As European consumers become increasingly concerned about data privacy, there is a burgeoning movement advocating for local alternatives to US-based services.
This merger could serve as a catalyst for other European tech companies to follow suit, fostering a more competitive and secure digital environment within the continent.
