[Click eStock] "Samsung SDS, Cloud Business Growth Momentum Starting Next Year"

[Asia Economy Reporter Kwon Jaehee] Hi Investment & Securities maintained a 'Buy' rating and a target price of 173,000 KRW for Samsung SDS on the 26th.

Hi Investment & Securities forecasted that Samsung SDS's investments related to cloud services will lead to revenue growth starting next year, serving as a momentum for business growth.

Samsung SDS provides services such as MSP (Managed Service Provider), CSP (Cloud Service Provider), and SaaS (Software as a Service).

MSP is a business that assists companies wishing to shift their work environment from traditional on-premises (IT infrastructure such as servers and storage built in-house) to the cloud by assessing their current operations, recommending the most suitable CSP, and managing data migration and operations to the cloud. This represents the largest portion of Samsung SDS's cloud business.

In the case of CSP, cloud infrastructure and services are provided to companies. Increasingly, companies want to adopt a hybrid approach by storing more sensitive data on private clouds?which can keep data on internal infrastructure while utilizing some cloud functions?and using public clouds for less sensitive or scalable data. Accordingly, Samsung SDS's CSP scalability is expected to increase in the future.

Above all, Samsung SDS, as a SaaS provider, offers collaboration, security, and automation solutions that improve and streamline internal business processes. Specifically, it supplies Brity Works, which consists of communication tools such as business email, video conferencing, and messenger (Brity Mail, Meeting, Messenger), storage for sharing documents and files (Brity Drive), AI chatbots, and Robotic Process Automation (RPA) solutions for business support. Within this environment, Samsung SDS is strengthening its competitiveness as both a cloud MSP and SaaS provider by fostering a close partnership with Amazon Web Services (AWS), a leading global public cloud infrastructure provider. In other words, Samsung SDS leverages AWS's sales network when distributing SaaS globally and receives marketing, sales, and technical support from AWS when executing cloud-based digital transformation projects.

In particular, the Dongtan Data Center, scheduled for completion early next year, is expected to accelerate cloud business growth by providing HPC resources as cloud services for building high-performance AI models for Samsung Electronics and other major group companies' R&D, external clients, and solving industry-specific business optimization problems.

Researcher Lee Sanghyun of Hi Investment & Securities analyzed, "In an environment where the digital transformation market is expanding, previous cloud-related investments will translate into revenue growth starting next year, making growth prospects more visible. This will act as a growth momentum going forward and could lead to an increase in the company's valuation."

This content was produced with the assistance of AI translation services.