Mega M&A week continues as mobile kingpin scoops up Joyent
For years those who track the cloud computing market have predicted consolidation. The market is young enough, promising enough, and the barriers to entry for companies that want a slice of this market are high enough that mergers and acquisitions are to be expected.
Today, electronics, appliance, TV, tablet and smartphone heavyweight Samsung bought IaaS cloud computing provider Joyent. The move immediately puts Samsung into the competitive IaaS cloud market while simultaneously boosting the mid-sized provider Joyent’s potential go-to-market scale.
Samsung has come to realize that it needs a cloud. Building one is difficult and expensive. In an interview with ZD Net, Samsung CTO Injong Rhee said the South Korean company wants to expand the functionality of services its able to provide to customers outside of devices they sell. The cloud is the natural answer. In buying Joyent, Samsung is buying a proven cloud platform that works out of the box and is ready for use.
The acquisition by Samsung comes as its chief rival, Apple, is also reportedly developing new capabilities for its iCloud. The Information reports that those efforts have been stymied by political infighting within the company, however.
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SOURCE: Network World
Brandon Butler
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