Samsung Goes Further Into the Cloud with Joyent Acquisition
By acquiring the San Francisco-based cloud computing firm Joyent, an announcement made today, Samsung gains access to its own cloud-based platform for mobile and Internet-of-Things (IoT) services. Joyent, meanwhile, expects to benefit from the much greater ability to scale that Samsung will afford it.
While it will continue to operate as a standalone company, Joyent will enable Samsung to further develop its own cloud-based services and infrastructure, the companies said in their announcements about the deal. Samsung did not provide further details of the acquisition, which it says remains subject to the usual corporate closing conditions.
In addition to being a global manufacturer of smartphones using the Android operating system -- the world's most widely used mobile OS -- Samsung also develops technologies for smart homes, IoT, and mobile payments. The company has aimed to bolster those business areas with other recent acquisitions, including its 2014 purchase of smart-home firm SmartThings and its 2015 acquisition of LoopPay, a mobile payment company whose technology is now used in Samsung's own Samsung Pay offering.
Cloud Tech and 'Deep Domain Expertise'
In a prepared statement released as part of today's announcement, Samsung mobile communications CTO Injong Rhee said his company had considered a "wide range" of cloud firms before deciding to acquire Joyent. In addition to a customer base that includes a number of Fortune 500 customers, he said, Joyent also brings "an experienced management team with deep domain expertise and a robust cloud technology."
The deal was led by Samsung's Global Innovation Center.
Joyent CEO Scott Hammond previously helped lead Cisco's Cloud and Systems Management Technology Group, while CTO Bryan Cantrill spent more than a decade in engineering at Sun Microsystems, which was purchased by Oracle in 2010. Joyent's current customers include Storify, Teletrac Engineering, Tripshare and Live Gamer.
'New Generation of Mobile and IoT Apps'
"Until today, we lacked one thing," Joyent's Hammond wrote in a blog post today. "We lacked the scale required to compete effectively in the large, rapidly growing and fiercely competitive cloud computing market. Now, that changes."
Hammond said the combination of Samsung and Joyent will enable both companies to speed up innovation in "high-growth market segments." He added that the deal also provides Joyent with a key anchor tenant for its Triton and Manta services, as well as the financial backing it needs to continue meeting customers' service demands.
Meanwhile, bringing Joyent's offerings into its fold will help Samsung keep up with its own customer demands for cloud-based data and storage services, Samsung said.
In a separate blog post today, Joyent's Cantrill said Samsung emphasized during its talks with the company that it wanted to use its Triton and Manta offerings "as the server-side foundation for a new generation of mobile- and IoT-based applications."
"With their strong commitment to our existing strategy, the acquisition of Joyent by Samsung is not -- in Silicon Valley's tacky vernacular -- an 'exit', but rather an entrance: our new-found level of scale will allow us to use our proven technologies to tackle a new scope of problems, and drive another generation of innovation that will have benefits not just within Samsung but far beyond it," Cantrill wrote.