Microsoft and LG agree to work together on IoT

Microsoft and LG Electronics agreed to cooperate on the Internet of Things (IoT) yesterday when Microsoft’s Chief Executive Officer Satya Nadella was in Korea to attend the TechDays 2014 forum held at the Grand InterContinental Hotel in Samseong-dong, southern Seoul.

The two companies signed a memorandum of understanding (MoU) to work together to expand their IoT businesses, considered the next step in connecting smartphones and home appliances with the Internet.

LG Electronics’ Chief Technology Officer Ahn Seung-kwon and Microsoft Korea CEO Kim Jung-woo attended the MoU signing.

Vice Chairman of LG Electronics Koo Bon-joon and Nadella reportedly had lunch together at the hotel to discuss how the two companies would cooperate.

LG Electronics is expected to focus on its consumer electronics and mobile device technology, while Microsoft will seek to help LG by providing cloud-based platforms.

They will then jointly target the business to consumer and business to business markets.

“The key to the IoT is that each device will be connected through the Internet and provide services through sensors. Cloud and sensors are the two keywords in the IoT,” said a spokesman for LG Electronics.

The company said that cloud platforms are essential for storing data on the Internet and for accessing that information with a variety of devices regardless of location.

Nadella was the keynote speaker yesterday at TechDays, an international annual event organized by Microsoft for technology developers.

“Microsoft will become a platform company based on mobile and cloud environments,” the CEO said.

“Now is the best time for developers to change people’s lives and the direction of the economy. Microsoft’s role is to provide the most extensive and comprehensive platform for developers so that they can create anything they want.”

LG Electronics and Microsoft have previously cooperated to develop solutions in a variety of domestic businesses, including global virtualization, 3DTV and Xbox 360.

Nadella also met with Samsung Electronics’ Vice Chairman Jay Y. Lee on Tuesday to discuss patent disputes and business between Samsung and Microsoft.

BY KIM JUNG-YOON, LEE SO-AH [kjy@joongang.co.kr]