Chinese Baidu to enter Korean cloud market in the beginning of next year
Lee Gyung Tak | kt87@ | 2017-11-21 10:33:04

Baidu, known as `Google of China`, is expected to enter Korean cloud service market early next year. It is a strategy to sell its cloud infrastructure to Korean companies and to use a "win-win model" to help China enter the service market.

According to a Baidu official on November 20, the company concluded negotiations with Korean companies to collaborate early on with the goal of entering the Korean cloud market early next year.

Recently, the Baidu Cloud Marketplace general director, who is in charge of business negotiations with domestic independent software development companies (ISVs), met with reporters and said, "We are negotiating with Korean companies such as Pay-Gate and will enter the Korean market early next year "Korean ISVs can provide SaaS (service-oriented software) using the IaaS (service-oriented infrastructure) that Baidu has built for cloud services."

According to the director general of Chem, 20 domestic companies such as Bix Games, Mesh Korea and others have concluded negotiations with Baidu. Supply chain management (SCM) solution provider MLO and groupware vendor Handysoft have already started preparations for launching SaaS via Bidu Cloud. Baidu plans to provide these services for free so that these companies can test their IaaS environment. As cooperation progresses and the company aims to provide local technology and sales support to Korean ISVs through Baidu search advertising and free entry into the Baidu Innovation Center in China.

Meanwhile, Baidu`s strategy is similar to that of Alibaba, which entered the Korean cloud market last year, but it has a differentiation. Both companies are targeting Korean companies that want to enter the Chinese market. Alibaba announced its partnership with C & C £¿ Bankware Global of SK Corporation last year, declaring its entry into the Korean cloud market last year, and recently co-operated with KT to launch IaaS sales. On the other hand, Baidu is a strategy to promote SaaS to collaborate with domestic SW companies and IaaS to naturally expand through SaaS supply.

"We expect them to be very helpful in expanding the market as Korean ISVs have excellent experience and competitiveness in each field. Baidu accounts for 80% of the Chinese search (mobile + PC) market, Korean companies will be able to exploit the market effectively. "

"Baidu is well aware of the experience and stability of the domestic SW companies in a variety of areas, and they want to open up the Chinese market through Baidu Cloud," said Baidu, "We will continue to work on Baidu Cloud in the first half of next year, so SaaS distribution is under the responsibility of Paygate, and IaaS is still being discussed."


By Lee Gyung Tak kt87@


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