KT and NHN will spin off their cloud business on the 1st. It aims the public cloud market. Attention is being paid on whether KT Cloud and NHN Cloud will be a variable that shakes the existing structure dominated by AWS and Microsoft as they expand their positions in the public and private cloud market.
◇KT Cloud challenges AWS, aiming beyondleading operator in Korea
KT Cloud has established a system that enables rapid decision-making according to the characteristics of cloud and IDC business. KT Cloud, along with KT,plans to strengthen specialized businesses such as artificial intelligence (AI) infrastructure, desktop service (DaaS), and cloud-related big data analysis based on their strength of being the only one in Korea to provide integrated network, IDC, and cloud.
KT Cloud will focus on the public cloud conversion project, worth 800 billion won, to strengthen customized services, while also establishing a business system dedicated to the public sector.
In addition,it plans to actively respond to the IaaS market based on Korea's largest cloud infrastructure. It's market share is said to be around 20%. It is expected to compete fiercely to secure a meaningful share in the cloud market, where Amazon Web Services (AWS) controls about 60%.
◇NHN Cloud, Expanding customer base is 'primary force'
NHN is also going to launch NHN Cloud by dividing its cloud division into physical parts. It plans to expand sales through public cloud targeting and global market entry, and push for an initial public offering (IPO).
Do-min Baek, general director of NHN's cloud business division, and Dong-hoon Kim, director of NHN's cloud business group, were appointed as the first co-representatives. About 300 people, more than 30% of NHN's headquarters personnel, will move to NHN Cloud.
NHN Cloud plans to focus on winning domestic public cloud conversion projects led by the Ministry of Public Administration and Security. This year, the Ministry of Public Administration and Security plans to secure one-third of the 240 billion won budget for the cloud conversion project. The goal is to become the leading operator in the public cloud market.
NHN Cloud received 100 billion won in orders from the public cloud sector last year, and sales grow by more than 30% every year.
NHN Cloud will also expand its infrastructure, such as building a data center to provide cloud services,in order to secure early investment after its launch. Following Pangyo, additional data centers will be established in Gwangju, Gimhae, and Suncheon. It also seek to enter the global market. It will expand global services centering on Southeast Asia, such as Vietnam and Indonesia.
A cloud expert said, “Currently, the domestic market is at a stage where an ecosystem is being formed around foreign cloud platforms. He added, “Domestic companies should grow the domestic cloud market through cooperation rather than bleeding competition.”
By Staff Reporter Ji-sung Park (jisung@etnews.com), By Staff Reporter Hye-mi Kwon (hyeming@etnews.com)