LG CNS joins with Mega­zone to tap cloud biz

The Korea Times - - BUSINESS - By Baek Byung-yeul [email protected]­re­atimes.co.kr

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.

Cour­tesy 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.

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