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Taking A Closer Look At The Samsung-Joyent Deal

Last week Samsung announced that it was acquiring Joyent, a San Francisco-based cloud provider.

Even though the analysts declared that the public cloud market consolidation is over, this deal proves that there is still scope for M&A in the infrastructure segment. Interestingly, Joyent is not bought by a competitor or an enterprise infrastructure player looking at strengthening its position. Instead, the acquisition offer came from an unusual entity, which is the leader in the consumer electronics market.

Joyent was originally started in 2005 as TextDrive, a web hosting company that provided lifetime hosting for an upfront fee of $199. Though the original web hosting service was shut down in 2014, Joyent successfully transitioned into a public cloud competing with Rackspace, Amazon, and Microsoft. The core platform eventually transformed into a container as a Service (CaaS), focused on delivering container management services through Triton. It also offers Manta, an open source object storage service, and a hosted Node.js platform.

With just over 80 employees and a presence that’s restricted only to the US, Joyent is not the public cloud with a massive footprint. Like most of its competitors, Joyent is also struggling to compete in a market that’s dominated by deep-pocketed cloud companies. Why did Samsung invest in this deal?

Read the entire article at Forbes

Janakiram MSV is an analyst, advisor, and architect. Follow him on Twitter,  Facebook and LinkedIn.

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More Stories By Janakiram MSV

Janakiram MSV heads the Cloud Infrastructure Services at Aditi Technologies. He was the founder and CTO of Get Cloud Ready Consulting, a niche Cloud Migration and Cloud Operations firm that recently got acquired by Aditi Technologies. In his current role, he leads a highly talented engineering team that focuses on migrating and managing applications deployed on Amazon Web Services and Microsoft Windows Azure Infrastructure Services.
Janakiram is an industry analyst with deep understanding of Cloud services. Through his speaking, writing and analysis, he helps businesses take advantage of the emerging technologies. He leverages his experience of engaging with the industry in developing informative and practical research, analysis and authoritative content to inform, influence and guide decision makers. He analyzes market trends, new products / features, announcements, industry happenings and the impact of executive transitions.
Janakiram is one of the first few Microsoft Certified Professionals on Windows Azure in India. Demystifying The Cloud, an eBook authored by Janakiram is downloaded more than 100,000 times within the first few months. He is the Chief Editor of a popular portal on Cloud called that covers the latest trends in Cloud Computing. Janakiram is an analyst with the GigaOM Pro analyst network where he analyzes the Cloud Services landscape. He is a guest faculty at the International Institute of Information Technology, Hyderabad (IIIT-H) where he teaches Big Data and Cloud Computing to students enrolled for the Masters course. As a passionate speaker, he has chaired the Cloud Computing track at premier events in India.
He has been the keynote speaker at many premier conferences, and his seminars are attended by thousands of architects, developers and IT professionals. His sessions are rated among the best in every conference he participates.
Janakiram has worked at the world-class product companies including Microsoft Corporation, Amazon Web Services and Alcatel-Lucent. Joining as the first employee of Amazon Web Services in India, he was the AWS Technology Evangelist. Prior to that, Janakiram spent 10 years at Microsoft Corporation where he was involved in selling, marketing and evangelizing the Microsoft Application Platform and Tools.