Samsung Electronics made a huge announcement in which they revealed that they would be purchasing the US based cloud computing company known as Joyent. This is actually a part of Samsung’s large scale plan to strengthen their software capacity and potential by acquiring a few start-ups. A lot of the details are still yet to be disclosed as Samsung has been quite hush about the exact value for which they would be acquiring Joyent.
Joyent is one of the three companies which Samsung has acquired over the past few years. The other two companies are SmartThings and LoopPay which helped develop a certain technology known as Magnetic Secure Transmission. This allows Samsung to compete with reputed mobile payment services, mainly like Apple Pay.
Joyent goes head to head with Amazon.com and competes with it in terms of lending the use of data centers and even computer servers to other third party companies. As of now Samsung is quite heavily dependent on Amazon and Microsoft, mainly for their cloud services.
Acquiring Joyent would give Samsung an edge and also secure for them a direct hand in the field of cloud computing services.
This would be extremely beneficial to Samsung as it would provide them with their very own cloud computing platform. This will in turn support their business with regards to mobile phones. However, the Joyent name and management will be retained. Thus, Joyent will still function as a standalone company even after the deal with Samsung. This is in fact a wise move as Samsung will be able to make use of the best management when it comes to cloud computing projects.
Till now what still remains a mystery is what exactly Samsung intends on doing with the software platform gained by acquiring Joyent. All we know as of now is that they are going to implementing the technology into their mobile phone division. The chief technology officer of Samsung, Mr Rhee, affirms that Samsung will not only be concentrating on hardware but would now be focusing more on software and services as well. Virtual reality and artificial intelligence are mostly handled and powered by remote cloud services. Remember the partnership that Samsung entered into with Facebook’s Oculus unit? Thus, having Joyent over at their side may seem to work effectively in their favor.
The acquisition of Joyent by Samsung is quite a positive move and gives us hope for even bigger innovations and creations in the future as the CEO of Joyent, Scott Hammond says, “This acquisition, though, is about more than just adding financial muscle and scale. Joyent and Samsung share a culture of innovation and technical excellence, and bring together a set of highly complementary cloud, big data, mobile and IoT technologies.”