SK Telecom enters cloud managed service provider market

South Korea's SK Telecom Co. will aggressively enter the cloud market by providing differentiated services based on its nationwide communication networks and artificial intelligence (AI).

Industry sources on Tuesday said the company announced at a recent briefing for analysts its goal of becoming a top three managed service provider (MSP) in the nation by 2027.

An MSP is an intermediary that assists companies in using a cloud service provider (CSP) like Amazon Web Services, Microsoft and Naver Cloud. Leading domestic MSPs include LG CNS, Samsung SDS, SK C&C, Megazone Cloud and Bespin Global.

SK Telecom at the briefing predicted new growth opportunities for MSPs possessing AI capabilities given the rapid adoption of generative AI like the large language model-based chatbot ChatGPT.

"The methods companies use AI are classified as either linking their services to a CSP's AI model or developing their own AI models through private infrastructure," an SK Telecom source said. "The role of MSPs armed with AI and hybrid technological capabilities is expected to gradually grow."

The telecom giant will expand its public-centered cloud service to the private sector while going beyond providing infrastructure by developing its related business under a strategy of fusing AI and software.

The company will differentiate its service with edge computing, which uses nationwide telecommunications networks to place cloud servers near customers. It also offers intelligent cloud services by integrating its vision and language AI with the cloud.

In April, SK Telecom launched a consulting service for calculating cloud conversion costs.

The company's cloud business sales are forecast to double from 100 billion won ($78.3 million) last year to 200 billion won this year. Industry pundits say SK Telecom is highly likely to rapidly boost its business scale through acquisition of a major domestic MSP.

Write to Seung-Woo Lee at leeswoo@hankyung.com