HD KSOE to deploy Nutanix's cloud platform in move to cut costs

HD Korea Shipbuilding & Offshore Engineering has signed a contract to use California-based Nutanix's cloud platform after its old provider hiked its prices.

Byun Jae-keun, country manager of Nutanix Korea, speaks at a press event in western Seoul on Thursday. [NUTANIX]

Nutanix, a California-based cloud provider, will service its cloud platform to HD Korea Shipbuilding & Offshore Engineering (HD KSOE), a major Korean shipyard, as the company replaces its previous cloud solution from U.S. software firm VMware to cut costs.

Nutanix said on Thursday that the two companies signed a contract earlier this month to roll out the Nutanix Cloud Platform at HD KSOE. The timeline for deploying the new platform has not yet been revealed.

HD KSOE, a shipbuilding affiliate of HD Hyundai, is an intermediate holding company with three affiliates — HD Hyundai Mipo, HD Hyundai Samho and HD Hyundai Heavy Industries.

Nutanix Cloud Platforms provide a simple solution for running multiple applications and managing data on a single platform, allowing HD KSOE to efficiently manage and scale web-based applications without the constraints of its existing infrastructure.

Nutanix and HD KSOE anticipates the adoption of the Nutanix Cloud Platform will reduce the total cost of ownership by a minimum of 30 percent when compared to VMware's solution.

“Numerous industries are attempting to integrate the latest technologies, such as AI, in their existing infrastructure,” said Byun Jae-keun, country manager of Nutanix Korea, at a press event in western Seoul on Thursday. “A crucial factor for this integration is VMware’s virtualization service. However, recent issues with Broadcom have raised cost concerns, leading to an increasing number of companies turning to Nutanix.”

Broadcom’s takeover of VMware in November 2023 as part of the U.S. chipmaker’s multicloud strategy has left its clients scrambling for substitutes due to the sudden hike in prices of VMware products.

The move provides an opportunity for VMware rivals such as Nutanix, according to Mike Phelan, Nutanix’s senior vice president of global solution sales.

"Broadcom has a well-known business model [that] targets entrenched IT companies that are in every data center,” Phelan said. “It acquires those companies and reduces spending on innovation, research and development, and customer support while at the same time raising prices."

“Quite simply it’s a value transfer from customers to investors.”

In Korea, Nutanix will focus on establishing a presence in the enterprise market, with Byun noting that VMware’s largest domestic clients are inquiring about its cloud solutions.

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]