NAVER Cloud Company Profile

Background

NAVER Cloud, a subsidiary of South Korea's leading internet conglomerate NAVER Corporation, was established in 2017 to provide comprehensive cloud computing services. Leveraging NAVER's extensive experience in internet services—including search engines, e-commerce, fintech, and content delivery—NAVER Cloud has rapidly emerged as a significant player in the cloud industry. The company's mission is to deliver scalable, secure, and innovative cloud solutions tailored to diverse industry needs, thereby enhancing digital transformation for businesses globally.

Key Strategic Focus

NAVER Cloud's strategic objectives center on:

Diversified Cloud Offerings: Providing a broad spectrum of services, including Infrastructure as a Service (IaaS), Platform as a Service (PaaS), Software as a Service (SaaS), and hybrid cloud solutions, to meet varied client requirements.

Industry-Specific Solutions: Developing tailored solutions that integrate NAVER's technological expertise to address unique challenges across sectors such as finance, public services, and e-commerce.

Global Expansion: Aiming to become a top three cloud service provider in the Asia-Pacific region by investing heavily in proprietary technologies and expanding its global footprint.

Financials and Funding

Since its inception, NAVER Cloud has demonstrated robust financial growth:

Revenue Growth: In 2020, the company reported revenues of KRW 273.7 billion (approximately USD 234 million), marking a 41% increase from the previous year. This growth rate surpasses both global (29.3%) and domestic (18.7%) averages in the public cloud market.

Investment Strategy: Committed to reinvesting up to 80% of its annual revenue into technology development and workforce expansion through 2023, underscoring its dedication to innovation and market leadership.

Technological Platform and Innovation

NAVER Cloud distinguishes itself through several proprietary technologies and innovative platforms:

HyperCLOVA: Launched in May 2021, HyperCLOVA is Korea's largest-scale AI model, boasting 204 billion parameters. It surpasses OpenAI's GPT-3 and is utilized in various applications, including personalized online shopping experiences and customer service chatbots.

Data Centers: The company operates state-of-the-art data centers:

GAK Chuncheon: An eco-friendly facility utilizing wind for cooling, solar power for lighting, and rainwater reuse.

GAK Sejong: A hyperscale data center spanning 293,697 square meters, capable of housing over 100,000 servers, supporting advanced technologies like AI, robotics, and autonomous driving.

Security Certifications: NAVER Cloud holds numerous international security certifications, including ISO 27001, ISO 27017, ISO 27018, CSA STAR, and PCI-DSS, reflecting its commitment to data security and compliance.

Leadership Team

Kim Tae-Chang: Chief of Cloud Business. Kim has been instrumental in steering NAVER Cloud's strategic direction and expansion efforts.

Jang Bum-Sik: Leader of Platform Business. Jang focuses on enhancing the company's platform services and technological capabilities.

Competitor Profile

Market Insights and Dynamics

The global cloud computing market is highly competitive, with significant growth driven by digital transformation initiatives across industries. The Asia-Pacific region, in particular, presents substantial opportunities due to increasing cloud adoption among enterprises.

Competitor Analysis

Amazon Web Services (AWS): The leading global cloud service provider, offering a vast array of services and a strong presence in the Asia-Pacific region.

Microsoft Azure: A major competitor with a comprehensive suite of cloud services and significant market share.

Alibaba Cloud: Dominates the Chinese market and has a growing presence in the Asia-Pacific region, offering services comparable to global leaders.

Tencent Cloud: Another Chinese provider expanding its services across Asia, focusing on gaming and social media integrations.

Strategic Collaborations and Partnerships

NAVER Cloud has engaged in strategic partnerships to bolster its market position:

Public Sector Collaboration: Assisted the Korean government in revamping the COVID-19 vaccine appointment system, enabling it to handle simultaneous access by 12 million users.

International Partnerships: Signed a memorandum of understanding with Singapore's StarHub to expand services in Southeast Asia, targeting markets in Indonesia, Malaysia, and Vietnam.

Operational Insights

NAVER Cloud's competitive advantages include:

Proprietary Technology: As the only Korean cloud provider with in-house developed technologies across IaaS, PaaS, SaaS, and hybrid clouds, NAVER Cloud offers customized solutions that meet specific client needs.

Localized Services: Adapting to local regulatory requirements and cultural nuances, particularly in the Asia-Pacific region, to provide compliant and relevant services.

Integrated AI Capabilities: Leveraging HyperCLOVA to enhance service offerings, providing clients with advanced AI-driven solutions.

Strategic Opportunities and Future Directions

NAVER Cloud's roadmap includes:

Expansion in Asia-Pacific: Aiming to become a top three cloud service provider in the region by focusing on Southeast Asian markets and forming strategic alliances.

Investment in Technology: Continuing substantial investments in technology development, including AI, mobile edge computing, and isomorphic encryption, to stay ahead of industry trends.

Sovereign Cloud Strategy: Implementing a sovereign cloud approach to comply with local data regulations, enhancing trust and adoption among clients in various countries.