As part of their efforts to help the South Korean government become a “intelligent government,” SAP Korea and Naver Business Platform inked a strategic business partnership for public cloud cooperation in 2020. The goal of the collaboration was to foster a data-driven innovation culture in the public sector of the country through the introduction of cloud-based enterprise resource planning (ERP) systems and Big Data platform services.

In light of the government’s digital ‘New Deal’ — a policy package estimated to cost 20 trillion won ($16.8 billion) and intended to strengthen South Korea’s business development in a post-COVID 19 environment leveraging digital transformation — the SAP Korea-Naver alliance aimed to increase public cloud solutions. The economic stimulus package, initially unveiled in April 2020, planned to use digital and green innovation initiatives to keep the country’s economy alive. Investment of 160 trillion won by 2025 was proposed, along with the addition of 550,000 employment opportunities.

This year, SAP Korea reaffirmed its commitment to the country’s cloud computing market with the recent signing of the strategic business agreement for public cloud cooperation with internet conglomerate Naver Cloud and cloud managed services provider Cloud4C Korea. The three companies’ expanded partnership was made as a part of a deal for SR Co., Ltd. to migrate its existing IT infrastructure environment, including SAP ERP systems, to NAVER Cloud. SR Co., Ltd., or Supreme Railways, is a railway company that provides express trains — operating out of three stations and has 17 stops for its train services. (InsideSAP Asia often references articles from websites in other languages to bring you as much information as possible.)

Shin Eun-young, Chief Executive Officer at SAP Korea, shared in a statement:

“The IT infrastructure transfer contract of SR Co., Ltd. is a symbolic example of the first S/4HANA transfer since SAP Korea and Naver Cloud signed an MOU to expand cloud business for public institutions in 2020. Based on the business agreements signed with Naver Cloud and Cloud4C, we plan to secure more cases of digital transformation of public institutions.”

Accelerating Digital Transformation with Naver Cloud, SAP Korea, and Cloud4C

The digital transformation project for SR Co., Ltd. marks the first instance of a public institution’s SAP ERP system being moved to NAVER Cloud Platform, an infrastructure-as-a-service (IaaS) provider that has successfully attained CSAP accreditation (for NAVER Cloud Platform public institutions). As a result of this cloud migration, it is anticipated that in the future, SR Co., Ltd. will have the capacity to swiftly react to shifting trends in IT infrastructure through the utilization of system flexibility.

“Naver Cloud is continuously making efforts to quickly respond to the rapidly changing environment of public institutions and accelerate public digital transformation. We will further solidify our cooperation with Korea and spare no effort to support the successful implementation of a digital platform government,” Park Won-ki, Chief Executive Officer at Naver Cloud, stated.

SAP Korea also successfully finished the project in collaboration with Cloud4C, an SAP global premium partner and an official partner for the Business Transformation as a Service (BTaaS) offering RISE with SAP. In accordance with the terms of the business partnership, the three companies will offer SAP ERP operations and cloud managed services to SR Co., Ltd.  within the NAVER Cloud Platform.

The Naver Cloud Platform environment, in particular, is certified by the Korea Internet & Security Agency (KISA) to provide public institutions with SAP ERP cloud. Additionally, local financial and public institutions are anticipated to have more prospects to move into the worldwide market based on the Naver Cloud Platform, thanks in large part to Cloud4C’s in-house infrastructure network and compliance system across 52 regions in 26 countries.

Commenting on the expanded partnership with SAP Korea and Naver Cloud, Cloud4C Korea Country Manager Peter Seo said:

“Through this cooperation, we are able to expand the support of the NAVER Cloud Platform-based SAP digital transformation journey in the Korean public sector beyond the private sector. We are providing various cloud management services, including SAP, to over 4,000 global companies, and based on this, we will spare no effort to support NAVER Cloud to accelerate its global market entry.”

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SAP’s global cloud momentum continues to thrive as demonstrated in the tech giant’s recently released 2022 First Quarter Financials, reporting double-digit growth in both cloud revenues and current cloud backlog. In Korea, the German software enterprise’s multi-cloud strategy was reinforced last year with the unveiling of SAP’s first data center in the country to address the growing demand for cloud solution services.

Most recently, SAP Korea has forged several collaborative partnerships with both private and government sectors to promote cloud adoption. Following the joint partnership with Microsoft and Doosan for the development of the “Delightful Digital Workplace”, which will integrate the tech firms’ solutions including SAP Sales Cloud and SAP S/4HANA, SAP Korea has reinforced its alliance with Naver Cloud for a public sector summit and with the Korea Chamber of Commerce and Industry for the digital training programme of the Ministry of Employment and Labor and the Vocational Competency Review and Assessment Service.

SAP in Korea Advancing the Public Sector’s Cloud Adoption

In October 2020, SAP Korea and Naver Cloud has established a strategic alliance for public cloud collaboration to support the South Korean government’s transformation into an “intelligent government” leveraging SAP S/4HANA and SAP HANA solutions on the Naver Cloud platform. Almost two years after the agreement, the two companies reinforced their pledge to back the government’s transition to the cloud by hosting the Cloud Transformation Summit on the 29th of April. (InsideSAP Asia often references articles from websites in other languages to bring you as much information as possible.)

The event was centred on fostering the public sector’s private cloud adoption and transition to SAP ERP cloud to keep pace with today’s ever-changing market landscape. The summit was held a month after the announcement of the Ministry of Public Administration and Security to accelerate cloud computing conversion, including policies and guidelines that align with the current market and post-COVID environment.

Kim Tae-chang, Executive Vice President of Naver Cloud’s Cloud Business, explained that the summit hosted by Naver Cloud and SAP Korea intends to support domestic public institutions’ seamless transition to the private cloud to enable them to efficiently and effectively respond to fast-changing market requirements.

“The era has come when organisations, whether corporations or public institutions, must have digital capabilities that can respond flexibly to situations such as the Coronavirus,” he emphasised.

“It is very encouraging that SAP Korea collaborates with NAVER Cloud, which has received KISA certification, to present a model that enables public institution customers who are currently building and operating SAP ERP to implement a private cloud-based ERP system,” said Sang-il Yoon, Head of SAP Korea’s Public Service Division. “SAP Korea will actively support the digital transformation of Korean public institutions by providing cloud-based solutions such as SAP BTP and Rise with SAP based on its experience in supporting the digital transformation of various domestic companies.”

The summit was graced by SAP Korea CEO Shin Eun-young, who gave the opening remarks; Yoon Dae-kyun, a professor of software at Ajou University, who gave a keynote speech on ‘Suggestions for Revitalising the Public Sector’s Cloud’; and Min-seok Kang, Deputy Director of Naver Cloud’s Public Works Department and Hyeong-cheol Kang, SAP Korea partner, who both presented each company’s cloud strategy to support the public institutions.

SAP Young Next Cloud Academy

In collaboration with Korea Chamber of Commerce and Industry and through the K-Digital Training Programme by the Ministry of Employment and Labor and the Vocational Competency Review and Assessment Service, SAP Korea will be launching the SAP Young Next Cloud Academy, a completely free, hands-on cloud-based education programme.

To be held 5 days a week from the 20th of June to the 9th of December, the 6 -month project -oriented training course will be taking in 125 participants from the Seoul area and 25 from the Busan area. Supported by veteran active-duty consultants as programme instructors and mentors, the participants are expected to learn about:

• Developing various cloud-based applications leveraging PaaS-based cloud platforms
• Development of Private/On-Premise application for a hybrid cloud application harnessing PaaS cloud
• Utilise various platforms and development functions provided by the PaaS cloud platform 
• Develop applications operating in the actual cloud

“The goal of education and project mentoring provided by SAP is to nurture ready-to-use talents who can develop and operate software in various cloud environments after completion,” said Lee Hoon Kang, Vice President of SAP Korea’s Cloud Success Services Division. “In a self-study of people who have been employed after completing the talent nurturing project conducted since 2018, 90{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} job satisfaction and 91{aa282f308afcc222aaa21b0478c79e01a8fedd01972e2180867097bd93930f22} practical fit of the curriculum were excellent. We will do our best to train experts in the domestic software sector by making full use of the experience and know-how it has accumulated.”

The deadline for programme application is on the 26th of May.

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