Recently, Samsung Electronics announced that it is acquiring Joyent, a public and private cloud provider, which will give the former access to its own cloud platform capable of supporting its growing line up of mobile, Internet of Things (IoT) and cloud-based software and services. This acquisition indicates that Samsung is increasing its focus on software and services such as Samsung Pay and reducing reliance on hardware. As the company struggles to grow smartphone sales, diversification into services will ensure a steady revenue stream in future. Joyent sells hosting services that enable customers to run their software on cloud, similar to Amazon Web Services. It also helps companies to build their own cloud-style systems in their own data centres. We believe the acquisition of Joyent will strengthen Samsung’s services business as the company looks to diversify its revenue streams.
|