Samsung Acquires Joyent
Samsung Electronics has recently announced that it will acquire Joyent, a company that is important to the cloud hosting market, for an undisclosed amount. This acquisition marks Samsung effort to transition from just a device manufacturer; the company has begun to expand into software and services with things such as Samsung Pay. The acquisition of Joyent marks Samsung’s third major procurement of a US startup in two years. Acquiring Joyent allows Samsung to have another outlet of processing power, as it currently relies on Amazon and Microsoft for cloud services. As Samsung continues to delve into the realm of artificial intelligence and virtual reality, the extra computational service is much needed. Samsung also aims to use cloud services to collect and analyze data generated by its devices to create a more personalized experience for users.
Joyent will be integrated into Samsung’s mobile division. Joyent will keep both its name and top level management through this transition. Joyent will operate with a certain amount of independence from parent company Samsung. This acquisition allows Joyent to compete within the large, rapidly developing cloud market and will help Joyent’s worldwide expansion. As Scott Hammond, CEO, wrote on Joyent’s website, “ By bringing these two companies together we are creating the opportunity to develop and bring to market vertically integrated mobile and IoT services and solutions that deliver extraordinary simplicity and value to our customers. This will accelerate the speed of innovation for both companies in high growth market segments.”
Founded in 2004, the Joyent team was among the first to experiment with public and hybrid cloud as well as to industrialize containers. San Francisco based Joyent has many industry leading but lesser known products and services such as Triton, containers as a service, and Manta, object storage solution. Similarly to Amazon Web Services and Microsoft Azure, Joyent allows customers to run their software on the cloud but Joyent also aids customers in constructing their own cloud like systems within their own data centers. Joyent has raised about $126 million in venture capital over the past eleven years.
Senior vice president at Samsung’s Global Innovation Center Jacopo Lenzi: “As Samsung is increasingly focusing on software and services as part of its offering to users, it’s very important to build out our internal capabilities in cloud, not only in infrastructure but also in great talent. In Joyent we saw a combination of a proven platform that has been a leader in the forward-thinking elements of this space as well as a team that is world class.”
Joyent CEO Scott Hammond: “The partnership with Samsung gives us the global reach, the economic scale, the financial resources to not only innovate but to also extend our footprint globally. We’ll be building data centers around the globe.”
Chief technology officer of Samsung’s mobile division, “Big data is going to be a huge initiative for Samsung. Samsung devices will be increasingly intelligent, and big data is really a key component of intelligence and personalization.”