SK Telecom Enters Clouds

South Korea’s incumbent wireless operator SK Telecom (SKM - Analyst Report) has joined forces with the US technology behemoth International Business Machines (IBM - Analyst Report) to operate a cloud computing service.
 
Under the pact, IBM will provide the necessary infrastructural support (cloud-based servers, storage, virtualization technology and middleware applications) to the Korean carrier for the design and development of cloud-based applications in a cost-effective manner. SK Telecom and IBM Korea will work together to develop the entire cloud environment that encompasses concept design, hardware and software selection and implementation.
 
The deal represents a part of IBM’s ongoing efforts to strengthen its presence in the $10 billion cloud computing market in Asia. The company has reportedly beaten its rivals Hewlett-Packard (HPQ - Analyst Report), Microsoft (MSFT - Analyst Report), Oracle (ORCL - Analyst Report) and Sun Microsystems (JAVA) to secure the contract to build Korea's first cloud computing environment.

Cloud computing is a process of computing where tasks are assigned to a combination of connections, software and services (jointly forming the “Cloud”) that can be accessed over a network. Cloud computing is gradually gaining momentum as leading technology and telecom firms are aggressively deploying this service. However, concerns over security and reliability have made users skeptical about this technology.
 
The deal with IBM has enabled SK Telecom to establish its foothold in the $46 billion worldwide cloud computing market, which is expected to cross $150 billion by 2013. Cloud computing will provide the required software and hardware support which will enable SK Telecom and its partners to use the environment to develop telecom applications necessary for offering multiple value-added end-user services in the near future.
 
SK Telecom targets rolling out  more than 20 new services (via its Internet portal service “NATE”) to its roughly 24 million customers by the end of 2009 including sport news feeds and photo service. In the long run, the company plans to extend its entire IT infrastructure to the cloud environment.

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