ITCEN GROUP will launch a cloud specialized company ‘CloIT’. Their goal is to invest in cloud business where there is a lot of potential to grow, and also support business of their group based on cloud.
Subsidiary of ITCEN GROUP, Ssang Young Information has decided to put their cloud innovation(CI) business division under physical division on the 1st, and decide the official launch of CloITduring the board meeting held in the 2nd.
The CI business division is an organization that was in charge of cloud conversion and development projects. Even after their establishment,CloIT plans to support Ssang Yong Information other cloud business of the whole group and gradually grow into an independent cloud specialized company.
CEO of CloIT will be the Chief Operating Officer(COO) of ITCEN GROUP, Jin-gook Park. They announced that Park will make the official announcement soon.
CloITwill be constructed with business division, technology division, and cloud-native lab system. They will start with 139 people, and aims to reach 200 by the end of 2023 and 800 by 2025.
CloIT plans to expand their business areas based on the experience and knowledge accumulated in the various cloud transition, construction, and operation from public institutions and financeto finance and high-tech manufacturing.
By focusing on cloud native application modernization, they will be working as cloud application management outsourcing (AMO) and cloud infrastructure management outsourcing(IMO). They plan to expand 'SaaSification' business, which moves applications to software as a service (SaaS).
An official from CloIT said, “As a cloud-native specialized company, CloIT will enhance Ssang Yong Information’s ability to win orders for public-oriented cloud conversion and construction projects, and provide technical support so that it can successfully carry out order projects.We plan to expand our business into the cloud conversion in finance and enterprise market.”
CloIT targeted their annual sale of 40 billion KRW this year and 300 billion KRW in 2025.
The reason why ITCEN GROUP and Ssang Yong Information are spinning off CloIT is to focus on nurturing the cloud business, which is the future growth engine.
The goal is to move away from Ssang Yong Information, which specializes in system integration (SI), and to develop group cloud capabilities through cloud business and R&D.
Independent companycan receive external investment in the future to accelerate their growth. As a cloud-specialized company, it is advantageous for nurturing professional man-power.
The competition in the domestic cloud market is expected to intensifywith the launch of CloIT.
In the cloud service provider (CSP) sector, NHN Cloud and KT Cloud were launched independently last month.
In the cloud management service provider (MSP) sector, a brutal battle is expected between Ssang Yong Information, Daishin Information &Communication and LG Hitachi this year over the transition to public cloud.
Bespin Global and MEGAZONE Cloud are growing rapidly not only in Korea but also overseas. Samsung SDS and LG CNS are also strengthening their MSP business, so competition is inevitable.
〈Table〉Summary of CloIT
By Staff Reporter Ho-cheon An (hcan@etnews.com)