Samsung Making its Move into the Cloud

samsungAt this point, there’s no denying the fact that Samsung is a major player in the smartphone space. Going head to head with Apple, the company has proved it can hold its own.

But now, the electronics giant is looking to make another big move. With its recent agreement to purchase Joyent, Inc., a well known public and private cloud provider, Samsung is positioning itself to become a major player in the cloud computing services space.

At this point, Samsung has plans to keep Joyent as a separate business, however, it will be able to use its experience and service to boost its own cloud based performance.

Is this a Good Move?

While some feel that Samsung should focus on its core, which at this point appears to be the smartphone industry, others realize that this is an opportunity for the company to expand its offerings and position itself for future success.

With this purchase, the company now has a platform that can be used across its mobile and Internet of Things services.

From a financial perspective, it’s still unclear as to how much money Joyent will generate for Samsung.

Why Now?

There are many reasons why Samsung decided to make this move right now, with a decrease in smartphone shipments likely being the primary driver.

While smartphone shipments have fallen off, the cloud computing marketing is growing by leaps and bounds. If Samsung wants to stay ahead of the game, it only makes sense for it to bury more resources into this industry.

In the months to come, it will be interesting to see if Samsung is able to get its mobile business back on track. Even if it continues to stall, the company has a big opportunity to compete with the top players in the cloud computing services space.

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Erin M
Erin M
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