Samsung to build its own cloud infrastructure to reduce reliance on AWS

The South Korean electronics firm plans to first conduct a few tests by bringing its private cloud infrastructure to some of its business departments. When deemed stable, the company will expand its infrastructure and slowly shift away from AWS. Other than Samsung Electronics, every other business arm of the company had been considering this move, but Samsung Electronics will be the first to implement the plan.

Samsung's move to private cloud infrastructure is to reduce cost, improve security

Samsung has reportedly been paying hundreds of millions of dollars every year to AWS, and the cost has been increasing with each passing year as more and more devices are connected to the internet. Samsung Electronics alone paid around $483 million to Amazon last year. Moving to its own cloud will be extremely cost-effective for the company. As more smart home devices are launched in the future, the need for cloud infrastructure is expected to rise exponentially.

The company was also concerned about the security part of the cloud service, as AWS is an American firm. The company hasn't decided which group will guide and maintain its cloud infrastructure. Right now, its private cloud services are being handled by Samsung SDS, which has four data centers in Korea and thirteen data centers in other countries across the globe.

Samsung could use Joyent, a US-based cloud firm that it acquired in 2016, to create its cloud infrastructure. If the company moves away from AWS, it will be a massive blow for Amazon.