When it comes to cloud computing services, the big three names are Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform. But now it seems that Samsung is looking for a slice of the action; the Korean firm has announced that it is acquiring US cloud company Joyent.
The financial details of the transaction haven’t been revealed, and it is still subject to customary closing conditions.
Joyent will operate as a standalone company once the acquisition is complete. The cloud firm will become a Samsung subsidiary and continue to provide its services to customers, which include Nerve, Paper Culture, and Storify.
The deal is mutually beneficial for both companies. Samsung will have access to its own cloud platform that can support its growing lineup of mobile, Internet of Things, and cloud-based software and services. Joyent, meanwhile, will be able to use Samsung’s financial muscle, global network, and brand name to expand the company and increase its worldwide reach.
Joyent CEO Scott Hammond wrote in a blog post: “[..] until today, we lacked one thing. We lacked the scale required to compete effectively in the large, rapidly growing and fiercely competitive cloud computing market. Now, that changes. We are happy to announce that Joyent is adding the scale we need: Samsung is acquiring Joyent. As a result of this acquisition, Samsung will become an anchor tenant for Joyent’s Triton and Manta solutions, and will help fuel the growth of our team and the expansion of our worldwide data center footprint."
Samsung has been actively looking to acquire software developers as the company aims to lessen its reliance on hardware manufacturing for revenue growth.
The acquisition will mark the third US tech company Samsung has acquired in the last two years. It bought IoT startup SmartThings in 2014 for $200 million, and last year it purchased Massachusetts-based LoopPay, which developed the magnetic secure transmission (MST) used by Samsung Pay.