The growing popularity of cloud computing services among public
and small and medium enterprises (SME) has induced
), one of the leading telecom carriers in South Korea to strike a
), which specializes on networking and cloud solutions, to develop
a virtualization security solution for both public and SME
SK Telecom is the first telecom company in South Korea to launch
such a service for both sets of customers. With the deployment of
Juniper's vGW Virtual Gateway along with SRX Series Services
Gateways, the company will be able to develop a very high level of
security for its virtualized data centers across its cloud networks
through intrusion detection and prevention applications. Moreover,
it will also offer scalability through massive data storage and a
continuous and secure network infrastructure.
Earlier in November 2010, SK Telecom started offering cloud
service solutions known as T Cloud biz to its SME customers. Later
in July 2011, the company made this service available to the
non-business class customers mainly aimed at premium 4G-LTE
However, deployment of these security solutions, coupled with
LTE roll outs requires huge investments.SK Telecom Corp.'s net
income for the first quarter of 2012 declined due to higher
investments in advanced wireless networks and mobile tariff cuts.
We believe that heavy expenditures on promotional events and
handset subsidies may continue to drag the company's earnings in
the near future. Moreover, intense competition and heavy regulation
by the Korean government may also act as headwinds for the company
going forward. We, thus, maintain our long-term Underperform
recommendation forSK Telecom.
Currently, shares of SK Telecom have a Zacks #4 Rank (short-term
JUNIPER NETWRKS (JNPR): Free Stock Analysis
SK TELECOM CO (SKM): Free Stock Analysis Report
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