Major South Korean companies are strengthening partnerships with global cloud service providers (CSPs) such as Amazon Web Services and Microsoft, aiming to enhance their role in the managed cloud services market in Korea and overseas, industry sources said on Jan. 4.
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| South Korean company joins hands with global cloud service providers. Pictured, a data center with rows of various communications equipment. (Source: Korea Herald) |
The domestic managed service provider (MSP) market has traditionally been led by mid-sized companies such as Megazone Cloud and Bespin Global, while others such as GS Neotek and Metanet Tplatform are rapidly increasing their market share.
The relative absence of large companies in this space may be due to the fact that cloud services have only been available in Korea for less than a decade, making the market immature. However, the landscape has changed significantly in recent years as both private companies and public organizations increasingly adopt artificial intelligence services that require cloud infrastructure. The ability to leverage existing IT consulting expertise and develop solutions without significant infrastructure investment has also encouraged large companies to enter the market.
According to research firm Gartner, the global MSP market is expected to grow at a compound annual growth rate of 21.2% to reach $100.3 billion by 2026. South Korea's MSP market was valued at 7 trillion won ($4.76 billion) in 2023 and is expected to reach 12 trillion won next year.
Traditional IT service companies affiliated with large corporations, such as Samsung SDS, LG CNS and SK C&C, which previously entered the MSP market, are also expanding their businesses, positioning the MSP sector as a key growth driver.
CJ OliveNetworks has strengthened its partnerships with cloud service providers such as AWS and Naver Cloud. The company recently obtained AWS’s “devops” consulting certification, which enables it to optimize various stages of the software development lifecycle and provide professional cloud services.
Telecom carrier KT is also making strides in the MSP space, leveraging a strategic partnership with Microsoft that was established in September. The company recently established a dedicated MS business unit to strengthen its MSP operations.
Similarly, Hyundai AutoEver has achieved AWS top-tier partner status, enabling the company to modernize its applications and deliver customized solutions to customers more efficiently.
While the market is expanding rapidly, sources said securing initial profits is challenging due to high initial investment costs and heavy reliance on cloud service providers from major US tech companies.
As large companies consolidate their MSP operations, established companies such as Megazone Cloud and Bespin Global are also stepping up efforts to go public to fuel growth. Megazone Cloud has hired Samsung Securities and JPMorgan as underwriters, targeting an IPO in 2026, while Bespin Global plans to list its shares within the next one to two years.
These companies are also focusing on profitability by developing proprietary solutions. Megazone Cloud has introduced services such as GenAI360 v2, which supports the adoption of generative AI, and Megazone Pops, a software-as-a-service management platform. Meanwhile, Bespin Global offers its in-house cloud management solution, OpsNow360, to its customers.
“In the MSP market, experience and collaboration with global CSPs are crucial. While the entry of large companies may not change the competitive landscape significantly, the growing demand for cloud services highlights the need for companies to work together to expand the market,” said an industry source, who requested anonymity.
Source: https://baoquocte.vn/han-quoc-bat-tay-cac-nha-cung-cap-dich-vu-dam-may-toan-cau-299786.html
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