LG CNS joins with Megazone to tap cloud biz
LG CNS will establish a joint venture with local cloud computing company Megazone Cloud to tap into the country’s fast-growing public cloud computing market, the IT service arm of LG Group said Thursday.
The company said the joint venture aims to occupy the country’s cloud computing market at a time when many companies and public agencies are planning to migrate their operating systems to the cloud.
The cloud market here is expected to grow faster in the following years as the government loosened regulations that prevented financial companies from adopting cloud computing technologies in January.
Data provided by market researcher Gartner estimates the country’s public cloud computing market will reach 2.9 trillion won ($2.42 billion) in 2020.
“With the joint venture, LG CNS and Megazone Cloud aims to improve their market share in the digital transformation market here,” an LG CNS official said.
Megazone Cloud is a domestic cloud computing firm with some 1,000 experts in the sector. It has been offering cloud transformation and cybersecurity services to 1,300 customer companies.
LG CNS has been cooperating with the domestic company to develop cloud computing platforms and related technologies after signing a strategic partnership in December 2018.
CEOs of the two companies agreed to set up the joint venture Wednesday. The two will go through the preparation process over the next three months and launch the new company before the end of the year.
LG CNS will also cooperate with Megazone Cloud to tap into the overseas cloud market. LG CNS previously announced its bid to become one of the top three cloud system integration service providers in the Asia-Pacific region.
“Joining hands with Megazone Cloud, LG CNS will lead both domestic and overseas cloud markets,” said Kim Young-shub, CEO of LG CNS.
LG CNS CEO Kim Young-shub, left, poses with Megazone Cloud CEO Lee Joo-wan after agreeing to set up a joint venture at the latter’s headquarters in Seoul, Wednesday.