According to multiple telco sources, AWS’s main goal from the deal is to increase deployment speed for local clients in Korea.
AWS has until now used its overseas datacenters for Korean clients, even for local services, but there were complaints about speed due to the physical distance, they said.
KT is the nation’s second largest mobile carrier and largest fixed-line provider and has multiple datacenters within the country that AWS plans to rent to provider quicker services.
Amazon’s cloud service arm already has major Korean conglomerates as clients, including Samsung, LG and Hyundai Motor. The deal with Samsung is speculated to be worth millions of dollars.
Meanwhile, competing cloud providers Microsoft, IBM and Google are also upping efforts to expand in the country.
Microsoft Korea has prioritized its Azure Cloud Platform business for the second half, while Google recently started commercial service Google Cloud here, though they are both “far behind” AWS in terms of popularity, sources said.
SAP has inked a deal with local LG CNS to deploy HANA using the latter's datacenter in Busan.
The Korean government is also trying to lure more cloud service providers to invest in the country by opening up the public sector. Current laws forbid government agencies from using cloud services due to security concerns, thus removing up to 15,000 agencies from prospect lists and rendering Korea a less attractive investment proposition.
Source: ZDNet Korea (zdnet.co.kr)