Seoul, South Korea – South Korean Managed Service Providers (MSPs) are rapidly expanding their global footprint, driven by the need to overcome domestic market saturation and secure new growth drivers. This accelerated expansion is further fueled by the ongoing shift from on-premises IT infrastructure to cloud-based Software as a Service (SaaS), which has lowered barriers to entry in international markets.
Leading MSPs such as Megazone Cloud, Bespin Global, and Clouder are focusing on Southeast Asia, Japan, and the Middle East to expand their business.
Megazone Cloud, for instance, operates in seven countries, including the US, Japan, and Canada. The company has formed a joint venture with Itochu Techno-Solutions, an SI company under Itochu Corporation, to enhance its localization efforts in Japan. Megazone Cloud has also forged partnerships with global cloud service providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud to tap into overseas markets.
"We started by addressing language barriers and payment inconveniences for Korean companies operating overseas, and gradually expanded our business," said Sung-bae Gong, Center Manager at Megazone Cloud. The company is particularly targeting markets in Asia with a weak MSP presence, such as Malaysia and Thailand, and is using Vietnam as a base for further expansion.
Bespin Global is taking an even more aggressive approach to global expansion, with 15 offices in nine countries and over 5,000 global clients. The company's strength lies in its thorough localization strategy, which involves hiring local experts and collaborating with local partners. Bespin Global has seen significant growth in North America, particularly in the US, where it expects to achieve $100 million in annual revenue this year.
Clouder is expanding its global footprint from Malaysia and the US. The company has formed a joint venture with Sensof Group in Malaysia and has secured major clients such as MTJA, KK Mart, and Public Medicare Group. Clouder is also focusing on the US market, where it has partnered with over 100 SaaS providers.
The growing popularity of MSPs among large enterprises and the increasing demand for digital transformation in emerging markets are driving this global expansion. "The domestic market is limited, and businesses are often affected by domestic economic conditions," said an industry insider. "MSPs have a relatively narrow revenue structure compared to Cloud Service Providers (CSPs), which is why they are looking to expand overseas."
The Asia Pacific region, particularly Japan, is a major target market for South Korean MSPs due to its slow pace of digital transformation and high demand for cloud and AI solutions.
[Copyright (c) Global Economic Times. All Rights Reserved.]
