Cisco has joined forces with LG to develop technology related to the Internet of Things (IoT) and cloud computing systems.
The networking firm said it had chosen LG CNS, a subsidiary of the South Korean electronics giant, as its first local business partner in efforts to identify business opportunities in the Korean market.
Chong Kyung-won, GM and VP of Cisco Korea, told The Korea Times: "Cisco believes the cloud computing market has huge growth potential. We’ve been consistent in providing standardised and qualified cloud and managed services to our partner companies.
"We hope the partnership with LG CNS lays the groundwork for shared growth with more Korean partners in those segments."
Won Deok-joo, senior executive at LG CNS, added that he hoped the partnership would produce "substantial results".
The deal comes as research firm IDC predicts that cloud computing and IoT combined will generate nearly $9 trillion in annual sales by 2020.
An executive at LG added: "The partnership will be a good impetus for Cisco to approach more clients here. Also, because LG CNS has recently been pushing its cloud and managed solution services, the business expansion with Cisco looks meaningful.
"A lot of local businesses regardless of size, are increasingly acknowledging the benefits that IoT and cloud computing can provide, such as cost-cutting, efficiency in distributing software and advantages of being part of an integrated ecosystem of software solutions.
"Therefore, Cisco can’t afford to lose such new business opportunities in the Korean market."