Earlier today, we announced our acquisition of Essential Co. Ltd. (Essential), another step in our journey to accelerate digital transformation success for organizations around the world. The move underscores our continued commitment to international expansion, one of our key growth vectors.
Founded in 2018 and headquartered in Seoul, South Korea, Essential works with large enterprises in the country – including Samsung Electronics, LG Chemical, Hyundai Motors, and Coupang – to accelerate their digital transformations through direct sales, channel sales, and implementation partners. Prior to our acquisition, we had a relationship with Essential and consequently built a strong base of South Korean customers transforming from their legacy technology infrastructure to the latest cloud services.
When I speak with our teams, customers, and partners in the region, the need is greater than ever for a proven technology partner to not only help them transform to the latest cloud services, but to secure their data, sustain their connections, and ensure business resiliency. As digital transformation accelerates, the public cloud market in South Korea is expected to show a compound annual growth rate of 18.78% through 2027.
The data center market in South Korea continues to expand as well, expected to grow to $5.8 billion by 2027 thanks to the growing support and initiatives from the government for the development of data centers as well as the high adoption of artificial intelligence by the government and other enterprises. South Korea is already home to global cloud service providers including Amazon Web Services, Microsoft, Google, Oracle, and Tencent. This move enables us to better scale to meet the demand and support South Korean organizations in their journey.
Existing customers of Essential will receive the same dedicated support and service they enjoy today. As our teams come together, we will focus on your top challenges and needs.
We look forward to sharing more details as our teams come together.