CLOIT
Navigating Cloud Modernization in South Korea

CLOIT is a shining example of how visionary leadership not only participates but actively shapes the trajectory of an industry.

Despite South Korea’s delayed entry into the cloud market amid a worldwide boom, the holistic cloud technology provider CLOIT has positioned itself as a leader in shaping the future of cloud technology.

The company’s genesis might have happened one and a half years ago, but its pioneering spirit can be traced back 30 years when its leadership team—then immersed in separate ventures—began investigating the novel concept of cloud technology in South Korea. This foresight became significant in understanding and leveraging the technology’s potential, especially considering South Korea only embarked on its ‘Cloud 1.0’ journey six to seven years ago to develop the infrastructure layer of cloud computing.

As the nation progresses into ‘Cloud 2.0’ right now, CLOIT is spearheading this evolution, capitalizing on the cloud’s capabilities to enhance operational efficiencies and drive more profound business and digital transformations.

“We provide everything from cloud infrastructure and application modernization to SaaS solutions, as well as no-code and low-code platforms, not to mention a cloud SaaS marketplace that enriches the ecosystem with more versatile and robust options. This multifaceted approach sets us apart from the other cloud service providers in Korea,” says Young Soo (Scott) Lee, CEO.

How is CLOIT geared to accomplish such an ambitious objective?

The company draws strength and experience from its parent company, ITCEN GROUP. As South Korea’s third-largest IT service provider, ITCEN GROUP boasts a formidable portfolio of IT services and businesses. CLOIT was born out of one of the GROUP’s subsidiaries, Ssangyong Information & Communications Corp., renowned as one of Korea’s most established system integrators.

Another cornerstone of CLOIT’s foundation is LG Hitachi, an established player in system integration and infrastructure. In December 2022, ITCEN GROUP acquired LG Hitachi, and a strategic decision was made to integrate LG Hitachi’s business into CLOIT. This consolidation, effective from April 2023, further strengthened the company’s position, making it a powerhouse in the cloud services domain.

Leveraging this deep-seated expertise, the company provides a broad spectrum of services to cater to a diverse clientele—including government, public services, finance, retail, and manufacturing. In Korea, where platform companies are engaged in substantial business activities—akin to DoorDash in the U.S.— there is a pressing demand for specialized support in both internal and customer service transformation, an area where CLOIT excels.

For instance, it has developed and launched SportsGMS (sportsgms.com), Korea’s first dedicated sports game management system to address the need for cost-effective sports events management solutions for mid/low-level events. This initiative is based on the expertise that CLOIT has acquired from managing numerous large-scale events, such as the Hangzhou Asian Games and the upcoming Paris Olympics. Additionally, tapping into the global surge of interest in K-pop and K-culture, CLOIT has created a platform leveraging the Education Broadcasting System’s (EBS) resources to facilitate Korean language learning worldwide.

Equally commendable is CLOIT’s pioneering dual marketplace business model within Korea’s cloud sector. It operates a K-SaaS marketplace (www.ksaas.kr) that showcases Korean SaaS offerings to a global audience. On the other hand, it also facilitates the entry of international firms into the Korean market through SaaSlab (www.saaslab. co.kr), a platform designed to bridge international SaaS providers with Korean customers. There are 170,000 SaaS companies in the U.S. currently, but they have no connection with the Korean market. CLOIT’s innovative approach cements its role as a conduit for technological exchange in the global SaaS ecosystem.

The company also shows a particular penchant for application modernization, recognizing its critical role in clients’ quests for increased efficiency, productivity, and agility, especially when it comes to launching new digital initiatives.

Why these criteria?

In the era preceding Cloud 1.0, setting up new applications was a long-term investment, often expected to last five to six years without significant changes. However, today’s digital environment is in constant flux. Customer needs evolve daily, and the competition is immense, necessitating businesses and their applications to adapt and respond to these rapid changes. CLOIT recognizes that the ability to pivot quickly is not just an advantage but a necessity for survival and success in this competitive landscape.
It is this understanding that propels CLOIT to promote a hybrid model of operation, one that melds strategic consultancy akin to the offerings of Accenture and Deloitte with its specialized cloud and IT services.

Every collaboration begins with in-depth consultations to discern the true drivers of their digital transformation initiatives. Surprisingly, only about half can clearly articulate the ‘why’ for their transformation efforts. When probed about the specific changes they seek to make, just 30 percent can provide detailed responses, and a mere 10 percent have a solid strategy for achieving their transformation goals.

For instance, clients often misunderstand that cloud modernization requires substantial resources and time. The ‘cloud native’ concept includes two distinct approaches—one based on microservices and DevOps for external-facing applications and the other using low-code and no-code tools for internal business challenges.

CLOIT employs microservices and DevOps for customers needing external-facing applications for scalability and maintainability. For internal systems like ERPs, CRMs, and contact centers, it promotes low-code and no-code solutions to facilitate cost-effective cloud migration, enhance business agility, and improve visibility.

This end-to-end strategy ensures CLOIT is not only to provide solutions but also to forge a path through the complexities of digital transformation, guiding clients from conceptual clarity to the execution of their strategic vision. That’s what makes CLOIT a pivotal partner in South Korea’s ongoing digital evolution.