Response to local demand such as digital government
Targeting to achieve KRW 1 trillion in sales by 2025
Attention to subsidiaries of NHN and Naver
Collaboration of Bespin Global and Japan’s Serverwo
MEGAZONE Cloud has completed an enterprise combination registration in Japan for a joint venture established with Itochu Techno-Solutions (CTC). MEGAZONE Cloud plans to expand their investment in the joint venture and start targeting the Japanese cloud market in earnest.
Itochu Techno-Solutions is a system integration company of Itochu, Japan's largest trading company, with sales of KRW 100 trillion. They not only provide Information Technology (IT) and cloud solution in Japan, but also to other mega companies in Asia.
MEGAZONE Cloud and Itochu Techno-Solutions already signed capital partnership agreement back in 2020. At that time, Itochu Techno-Solutions invested 19% in the joint venture for the purpose of verifying its effectiveness. Recently, they increased the investment up to 49%. Itochu Techno-Solutions explains that they have secured capital in order to strongly promote the joint venture.
MEGAZONE Cloud and Itochu Techno-Solutions will respond to the hybrid-cloud service which has been increased in demands with sophistication and diversification. They are promoting their business focusing on Itochu Techno-Solutions' cloud brand 'OneCubic'. They will help with cloud migration of corporate systems and provides compatibility, network connectivity, and security services in the process of implementing the cloud. They have set a goal of achieving KRW 1 trillion in sales by 2025.
Not only MEGAZONE Cloud, other cloud companies are also heading to Japan. NHN Cloud, Naver Cloud, and Bespin Global have also entered Japan.
NHN Cloud is operating a cloud management service provider (MSP) business in Japan through NHN Techorus. They also established a region in Japan in 2019. It is analyzed that NHN's cloud growth is accelerating due to the strong MSP business of NHN Techorus.
Naver Cloud also built a data center in Japan. They are targeting the Japanese market with 'Game Report', a game-oriented solution. Moby Dick, a Japanese game company, has already adopted Game Report, and many Japanese game companies are negotiating to adopt Game Report.
Bespin Global established a joint venture 'G-gen' with Japanese cloud company Serverworks. G-gen is characterized by providing Google Cloud at the lowest price in the Japanese market. They are developing their business target in the enterprise market, which is the strength of Serverworks.
The reason cloud companies are concentrating on Japan one after another is due to the growth of the cloud market and a stable business environment. The Japanese cloud market is growing rapidly with double-digit growth every year. It can be a bridgehead to advance into Asia geographically.
A cloud company official said, "The Japanese government has many opportunities for digital transformation, such as strengthening the nation's digital innovation by establishing a digital policy organization in May last year. Since we are physically close to Japan, domestic cloud companies are continuing to enter Japanese market.”
By Staff Reporter Hye-mi Kwon (hyeming@etnews.com)