SAP inks LG CNS deal to drive cloud deployments in Korea

German software vendor signs agreement with LG's IT consulting business unit to boost deployments of SAP's cloud platform HANA in Korea.

SAP has inked a deal in Korea that will see local IT consulting firm, LG CNS, drive deployments of the German software vendor's cloud platform HANA in the Asian market.

Both companies said they are targeting to tap in-memory computing capabilities to offer processes that require batch processing in real-time, reported The Korea Times on Monday. The new partnership will see SAP HANA Enterprise Cloud Center (HEC) set up in LG's cloud data center located in Busan. The IT consulting vendor is the services subsidiary of LG Group. 

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The data center is equipped with a cooling system that taps natural wind currents to cool its hardware. According to LG, the building is designed to be energy-efficient and is Korea's first building capable of withstanding earthquakes of up to 8 magnitude. 

SAP is hopeful the partnership will help the company grow its client base, with the HEC Center providing the infrastructure needed for cloud computing and delivering services to existing and future clients.

Both companies will establish a central information database containing all customer problems and situations, making it easier for SAP clients to customize their ERP systems according to their vertical markets and business requirements. The partnership will look at implementing industry-specific offering and customized HANA modules, which LG CNS said would drive sales of the SAP cloud platform.

LG CNS has been focused on enhancing cloud-based computing systems that require higher security and stability, said LG CNS CEO Kim Dae-hoon. "The latest partnership with SAP Korea will significant help level up our capability in related industries and expand our client base," he said in the report. 

The two companies have earmarked cloud as a key growth driver and directed their focus to driving this market. SAP, for instance, said it aimed to deliver all its applications via the cloud  and become " the cloud company ",  powered by HANA . To support its cloud vision, the software vendor launched three new data centers in Japan and Australia earlier this year and is targeting to add at least three more in the region. It also plans to grow its global datacenter footprint to 20 locations by the end of 2014. 

LG CNS in April also said it would seek out growth opportunities in cloud computing and big data, and become "one of the most trusted suppliers" in these two sectors. It believed market growth would be fueled by the emergence of smart devices. 

Last week, the Korea vendor launched a Chinese language version of its Smart Social Media Analytics (Smart SMA), which collects and analyzes data from social media. The software was developed with Chinese text analytics vendor, SAS China, and completed in late-2012 and tested at LG Electronics' Chinese outfit, before it was recently approved for commercialization.

Smart SMA enables clients to use analyzed data in marketing, PR, and product development.