The joint venture 'Cloudgram' between Megazone Cloud and LG CNS has entered the liquidation process after five years since its launch.
According to the industry on the 8th, Cloudgram was dissolved after merging with Megazone Cloud in December last year. At the time of its launch in 2019, Megazone Cloud and LG CNS held equity stakes of 65.04% and 34.96%, respectively, targeting the cloud market for large enterprises and the financial sector.
However, Cloudgram recorded continuous losses from 2020 to 2023. Specifically, it suffered operating losses of 3.4 billion won in 2020, 3.8 billion won in 2021, 3.1 billion won in 2022, and 2.7 billion won in 2023. Revenue decreased from 31.2 billion won in 2022 to 20.2 billion won in 2023. Consequently, the equity also fell from 18.6 billion won in 2020 to 9.9 billion won in 2023.
LG CNS took a direct leap into the managed service provider (MSP) business, changing the situation. Cloudgram fell into a burden without improving its revenue, and LG CNS sold its entire equity stake in Cloudgram for 3 billion won to Megazone Cloud in the third quarter of last year.
A Megazone Cloud official noted, 'We believe we have achieved a considerable part of the effects both companies sought through Cloudgram, so we decided to liquidate it,' adding that they plan to continue strengthening their public and financial sector business.
Megazone Cloud is the leading MSP revenue operator in Korea and began preparing for an initial public offering (IPO) last year with companies such as Samsung Securities.