Jottacloud and Telenor Software Lab Merge to Build a Strong Norwegian Challenger in Cloud Storage

Core Viewpoint - The merger of Telenor and Jotta's cloud storage businesses aims to create a robust Norwegian alternative to global technology providers, driven by growing consumer concerns over data security and privacy [1][10]. Company Overview - Telenor Software Lab has been offering cloud services for over a decade, while Jottacloud has established itself as a leading storage provider in Europe since its founding in 2008, achieving an average annual revenue growth of 16.7% over the past ten years [2]. - The new company will be a joint venture owned 50/50 by Hawk Infinity and Telenor Amp, enhancing both Jottacloud and Min Sky services [3]. Market Context - The cloud storage market is rapidly expanding due to increasing data needs and digitalization, with services becoming essential in everyday life [6]. - The merger is expected to serve over 2 million active customers and generate revenues of approximately NOK 200 million in 2025, with an enterprise value estimated at NOK 1.5 billion [5]. Strategic Advantages - The merger is anticipated to create synergies in secure data storage, artificial intelligence, and product development, enhancing the overall cloud storage experience for users [4]. - Jottacloud has been a pioneer in AI, being the first cloud storage provider to introduce AI-powered language-based search for photos, which will continue to be a focus for innovation [8]. Commitment to Security and Sustainability - Jottacloud prioritizes privacy, sustainability, and data security, with its server infrastructure based entirely in Norway and powered by 100% renewable energy [9]. - Following the merger, all data will be relocated to Jottacloud's Norwegian data centers, reinforcing its commitment to secure, locally stored data [10]. Regulatory Considerations - The merger is subject to approval by the Norwegian Competition Authority, with completion expected in Q2 2025 [11].