Samsung is looking into its own cloud service, likely to ditch its current provider

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Samsung has decided upon self-reliance and is trying to substitute its cloud service provider. Samsung’s cloud currently relies 60% on Amazon Web Services, reports SamMobile, while the remaining 40% is outsourced to other providers. The cloud platform supports its smartphones, IoT devices and other products.
Basically, Samsung is planning to first conduct several tests, bringing its cloud infrastructure to some of its departments in order to slowly limit its dependence on Amazon Web Services (AWS), and eventually stop using it altogether.
So, why has Samsung decided to do this? First of all, of course, there are cost-related reasons. According to SamMobile, the company has been paying hundreds of millions of dollars every year for the service. Last year, more than $483 million, for Samsung Electronics alone, was paid to AWS. Additionally, as the number of users grows, the company has to pay even more for cloud computing solutions. If Samsung would rely on its own cloud, reportedly this could save a lot of money for the company.
Secondly, there is the reason for security. The South-Korean-based firm wants to maintain its cloud by itself and thus ensure a secure environment, dependent on Samsung’s own efforts. However, it is not clear which organization will support Samsung’s cloud yet. It’s said that the company may choose Joyent, a cloud service that Samsung bought in 2016, as Amazon Web Services’ replacement.
Questions & Answers
Q.What proportion of Samsung's cloud service currently relies on Amazon Web Services?
What proportion of Samsung's cloud service currently relies on Amazon Web Services?
Samsung's cloud service currently relies 60% on Amazon Web Services. The remaining 40% is outsourced to other providers for its smartphones, IoT devices, and other products.
Q.What is the primary financial motivation for Samsung to develop its own cloud infrastructure?
What is the primary financial motivation for Samsung to develop its own cloud infrastructure?
Samsung is paying hundreds of millions of dollars annually to its current provider, with over $483 million going to AWS last year for Samsung Electronics alone. Creating its own cloud could save substantial money.
Q.Besides cost, what is another key reason Samsung is planning to manage its own cloud?
Besides cost, what is another key reason Samsung is planning to manage its own cloud?
Security is another key reason. The South Korean firm wants to maintain its cloud infrastructure itself to ensure a secure environment, dependent on Samsung's own efforts.
Q.Which company might support Samsung's new internal cloud service?
Which company might support Samsung's new internal cloud service?
It is not yet clear which organisation will support Samsung’s new cloud. However, the company may choose Joyent, a cloud service it acquired in 2016, as a potential replacement.
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