Samsung announced it is in the process of acquiring the cloud computing firm Joyent in a move aimed at bolstering its services offering built around a thriving smartphone business.
Negotiations are still underway, and the outcome of it is subject to mutual commitment to a few key aspects. The financial terms of the deal too are anybody’s guess at the moment. However, several Joyent executive including CEO Scott Hammond, CTO Bryan Cantrill, and vice president of product, Bill Fine will join Samsung to provide impetus to the latter’s cloud initiatives.
Samsung though has stated it won’t interfere in the way Joyent functions but would use its technology and cloud infrastructure. In the same manner, Joyent will also continue to cater to its own clients as it has been doing during the 11 years of its existence.
The deal is immensely beneficial for Samsung in that this would serve as the first solid footing in the rapidly evolving cloud business, something that is imperative for a company having high stakes in the mobile and IoT business. Right now, Samsung is dependent on Microsoft and Amazon’s cloud infrastructure to meet its own demand. Now with Joyent under its control, it can diversify much of its own requirements in-house. Taken that way, Samsung would serve as Joyent’s biggest client.
Interestingly, its Microsoft Azure and Amazon Web Services that also happens to be Joyent’s most major competitors. The San Francisco-based company also stated they stand to gain a lot from the deal in that it would provide the company with space and scale they need to expand their operations further. Joyent’s main products include its container infrastructure platform Triton and cloud-based object storage service Manta.
“We are excited to join the Samsung family. Samsung brings us the scale we need to grow our cloud and software business, an anchor tenant for our industry leading Triton container-as-a-service platform and Manta object storage technologies, and a partner for innovation in the emerging and fast growing areas of mobile and IoT, including smart homes and connected cars,” said Scott Hammond, CEO of Joyent.
Samsung’s earlier acquisitions in the US in recent times include SmartThings, a startup company that specialises in establishing smart connection between home appliances in a deal worth $250 million. Similarly, the South Korean giant had also lapped up LoopPay for around $160 million and serves as the mobile payment technology backbone for Samsung Pay.