Naver launches its hybrid cloud service
Naver launched a hybrid cloud service, Neurocloud, that establishes a mini data center inside a corporate client’s operation.
A hybrid cloud service combines a private so-called cloud, or internal data storage run by individual companies, and a public cloud offered as a service by IT providers.
While digital transformation has been one of the most common aspirations announced by Korean companies, there were limits to the extent that data that could be transferred to a public cloud, Naver explained, due to issues of compliance and compatibility.
Naver Neurocloud’s approach establishes data racks inside a client’s data storage, or establishes a small data center from scratch, which is connected to Naver’s public cloud.
Clients get the advantages of using a public cloud, like saving on maintenance fees or using applications such as big data analysis or AI development — while avoiding the risk of saving sensitive data on external clouds. The client can also apply its own security standards on the data stored in Neurocloud.
“We’ve been talking about digitization for many years but there was never growth as explosive as during the Covid-19 pandemic,” said Kim Tae-chang, who heads Naver Business Platform’s cloud business, during an online press conference Thursday.
“In the past, most of our clients wanted to use our system on a smaller scale but now we’re seeing more of them transferring core data onto our platform.”
According to a 2019 study by the Ministry of Science and ICT, 67.2 percent of cloud service users in Korea were using a hybrid cloud, as opposed to 25.2 percent for public cloud and 6.5 percent for private cloud.
Naver is particularly eyeing public offices and the finance industry, which typically have heavy volumes of data stored in their internal data storages and are highly attentive to data security. A big client it attracted this year was Hanwha Life Insurance, one of the industry’s top three insurance companies. The two companies announced a partnership in April to collaborate on a two-year project to revamp Hanwha’s data storage system.
Korea’s corporate cloud market is led by foreign IT firms like Amazon Web Services and Microsoft. According to research firm IDC, they took up a combined 67 percent share of the corporate cloud market in 2018.
“From the early 2000s to 2010s, Naver secured the top position as Korea’s largest portal operator from Google. As such, our goal is to be No.1 in cloud services,” said Han Sang-young, director of Naver Business Platform for cloud service and business planning.
BY SONG KYOUNG-SON [email@example.com]