The structures of more than 90 percent of LG businesses will be transformed in environments powered by cloud computing systems by 2023, the conglomerate’s information and technology solution provider said.
During a press conference held in Seoul on Friday, LG CNS said it will assume a “central role” in introducing cloud services across all LG business units. The company said it would provide a cloud services platform applicable to every LG unit by the first half of this year.
Stressing it was the first time among local conglomerates to envision an ambitious cloud service transformation, LG CNS said the efforts will revolutionize the way LG pursues innovation in manufacturing, marketing, research and development.
“Cloud service is a mega trend that we can’t resist anymore,” said LG CNS CEO Kim Young-sub. “How we lead the trend will determine whether companies will prosper in the future business environment.”
LG CNS CEO Kim Young-sub. LG CNS
The announcement came amid growing competition over the global cloud services market. According to US research institute Gartner, the worldwide public cloud services market is projected to grow 17.3 percent in 2019 to $206.2 billion, up from $175.8 billion in 2018.
Given that public cloud services could contribute more to reducing operating costs and adopting new technology than private cloud services, LG CNS said it would seek to introduce public cloud services to more than 70 percent of LG units.
Whereas private cloud services are generally considered more secure behind a firewall operated within the company’s intranet and hence more expensive to manage, public cloud services are operated by a third party and more efficiently updated, and hence are more favored by companies.
LG CNS stressed sensitive information will still be stored in private cloud system. LG CNS was certified for its public cloud security by the Korea Internet & Security Agency in March last year, making it eligible to provide the service even to public organizations.
“While our primary business focus is on public cloud service, we will pursue ‘hybrid cloud service,’ where private cloud system will also be available to deal with private information and technology crucial to national security.”
LG CNS also pledged to become a leading player in the Asia-Pacific region’s cloud services market, using its extensive business portfolio. The company offers various IT solutions for LG Group’s extensive businesses, which range from manufacturing to telecommunications.
“Over the past 30 years, LG CNS has accumulated extensive business experience in the IT industry,” LG CNS said. “Based on such a cloud services strategy, LG CNS will become a top-three cloud services provider by 2021.”