Japanese technology venture powerhouse Softbank has formed a partnership with a Korean telecommunications company which is looking to capitalize on the growing demand for cloud computing as well as the after-effects associated with Japan’s recent earthquake.
Softbank said it will partner with KT Corp., South Korea’s second largest mobile operator, to set up the cloud computing venture. Dubbed KTSB Data Service. KT will hold a 51% stake in KTSB while Softbank will hold the remaining 49%.
In a statement, KT said the companies plan to establish a data center in the South Korean city of Gimhae by October to offer cloud-computing services to Japanese companies. In an interview with Reuters, KT said Japanese firms were looking to establish power-hungry data centers outside the country as a result of power restrictions and safety concerns following the earthquake in March. The ensuing tsunami crippled some of the country’s nuclear facilities, forcing the country to implement power usage restrictions.
Through Softbank, KT plans to sell virtual infrastructure, PC cloud solutions, and cloud back-up services to Japanese enterprises. The companies have made an initial $65 million investment in the joint venture, dubbed KTSB Data Service.
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