Samsung is expanding into the cloud services space with the acquisition of San Francisco-based Joyent. The Korean firm said it will integrate Joyent into its mobile services division, but Joyent will retain its name and executive team. Samsung didn’t reveal how much it paid for the company.
One of the primary reasons for the deal, according to the mobile phone maker, is to reduce its costs. Samsung plans to become Joyent’s largest client and decrease its reliance on Amazon Web Services (AWS) and Microsoft Azure for cloud services.
However, Samsung also said that it plans to grow its software and services business in anticipation that new areas like Internet of Things (IoT), and 5G will require more computational power than mobile devices can handle and will be powered by cloud services. The company also sees business opportunities from collecting and analyzing data generated by its devices.
Samsung also could be looking at the cloud as a way to cultivate a bigger enterprise business. Analyst Jack Gold of J. Gold Associates says that he believes Samsung wants to start competing with Amazon, Google, and Microsoft to establish itself as a preferred vendor of cloud-based services.
“Samsung sees itself in the future as the next big player in enterprise solutions, starting with mobile but expanding into the apps and services space,” Gold says.
According to a blog post from Joyent CTO Bryan Cantrill, the deal came about after Samsung started testing the company’s Mantra object storage system and its Triton container-as-a-service. Cantrill says the mobile phone maker then started asking about how these products could be used for IoT-based applications.
“The more we got to know one another, the clearer it became that together we could summon a level of scale, agility, and innovation that would be greater than the sum of our parts,” Cantrill says in his post.
Cantrill also says that Samsung is committed to keeping Joyent’s platform open source and understands the commercial benefits of that decision.
Joyent CEO Scott Hammond says the deal will help Joyent get the scale it needs to compete in the cloud market. In a blog post, Hammond says that besides being an “anchor tenant” on Joyent’s Triton and Mantra platforms, Samsung will help expand the company’s global data center footprint.