Five cloud computing and software service providers SK Broadband Inc., Naver Cloud Corp, AhnLab Inc., TmaxOS Co. and Hancom Inc., have signed a strategic partnership agreement to develop a cloud ecosystem for Korea’s public institutions.
The Korean firms will develop parts of the ecosystem according to their own expertise. SK Broadband and Naver Cloud will develop cloud PC solutions and cloud infrastructure, AhdLab is set to optimise cloud security, while TmaxOS and Hancom will set up open-source operating systems.
The Korea Economic Daily reported that these firms sought to launch cloud services specifically tailored to public institutions’ demands for a smart working environment. The article highlighted that the firms intended for their collaborative efforts to bolster Korea’s cloud ecosystem and expand the local market.
Accelerating Cloud Adoption in Public Institutions
South Korea, a rapidly-growing digital hub, is bolstering digitalisation efforts across the country, by developing data centres and scaling up adoption of cloud services to establish “smart cities” in Korea. South Korea’s government has also stepped up initiatives such as the Digital New Deal 2.0, the National Project of Bio Big Data, and investments in artificial intelligence.
Given the prime market conditions in Korea, the five Korean companies will have to deal with competition from major multinational players in the cloud industry, such as Alibaba, Microsoft, Oracle, AWS, and Google.
Hence, the joint projects between SK Broadband Inc., Naver Cloud Corp, AhnLab Inc., TmaxOS Co. and Hancom Inc. could be a crucial strategic move to ensure the companies can stay ahead in the industry, by enhancing their competitiveness and relevance.
Notably, Korea’s public sector has a vested interest in cloud adoption, as the Korean government has affirmed that it will integrate all public institutions’ information systems into the private cloud by 2025. Earlier in 2021, the government announced that it would prioritise the adoption of private cloud over public cloud, when embarking on its cloud transformation projects. As such, the Korean cloud service providers are set to tailor their cloud solutions to meet the state’s cloud adoption demands.
For instance, Korean cloud industry leaders SK Broadband and Naver Cloud are set to jointly develop a cloud desktop service, which should be released before the end of 2022.
An official from SK Broadband told The Korea Economic Daily that the joint project provides stronger security against cyber threats as compared to existing virtual private network (VPN)-based virtual desktops, and should also maximise work efficiency.
These collaborative projects led by local Korean firms are a boon for Korea’s public institutions, and will likely do much to boost digital transformation in the country.
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