MegazoneCloud and Bespin Global, the No. 1 and No. 2 cloud managed service (MSP) providers, had mixed results last year. MegazoneCloud returned to profit, while Bespin Global fell back into the red. Both companies face the task of an initial public offering (IPO), drawing attention to how much they can deliver in artificial intelligence (AI) beyond MSP going forward.
◇ MegazoneCloud vs. Bespin Global, one year into their CEOs' tenure, Yeom Dong-hoon is ahead
In Jan. last year, MegazoneCloud named former Amazon Web Services (AWS) Korea CEO Yeom Dong-hoon as its new overall CEO, while Bespin Global appointed former Oracle Korea senior vice president Heo Yang-ho as Korea CEO. The task given to both at the time was improving profitability, a key requirement for an IPO.
In 2024 results, Bespin Global's situation was solid. On a consolidation basis, Bespin Global posted 463.7 billion won in revenue and 178.99 million won in operating profit. MegazoneCloud, by contrast, recorded about 1.3678 trillion won in revenue and 34 billion won in operating loss.
However, over the one year since Yeom and Heo took office, Yeom pulled ahead. Bespin Global failed to maintain its profit trend, while MegazoneCloud succeeded in returning to profit. On a consolidation basis last year, MegazoneCloud logged 1.7496 trillion won in revenue, 233 million won in operating profit, and 8.2 billion won in net profit. Revenue rose 27.9% from 2024, and operating profit was in the black for the first time since the company was founded. By contrast, on a consolidation basis last year Bespin Global's revenue rose about 17% year over year to 542.9 billion won, but it posted a 3.9 billion won operating loss.
◇ Overhauls to break free from MSP's structural limits
The difference in the two companies' results came down to how they expanded their MSP businesses. Even when MSP revenue grows, securing profitability is not easy. In the early days, revenue surged amid a rush to move to the cloud, but price competition intensified and even large corporations' system integration (SI) firms jumped into the market, compressing margins. In particular, MSPs have high labor cost ratios, require 24/7 operations staff, and handle many customized projects, making it hard to improve operating margins. Therefore, relying on MSP alone makes it difficult to improve profitability for a successful IPO.
MegazoneCloud and Bespin Global are pushing organizational overhauls by expanding around AI and security to break through MSP's structural limits.
In May last year, MegazoneCloud unveiled a new corporate vision and strategy: "from Cloud-Native to AI-native." Yeom Dong-hoon said, "An AI-native corporation is one that goes beyond using AI as a simple tool to internalize it across business strategy setting and decision-making, products, and services—redesigning the organization's very DNA around AI."
In Jan. this year, Bespin Global reorganized around AI and expressed its ambition to leap forward as an AI transformation partner. CEO Heo Yang-ho rolled out the slogan "Helping You Adopt AI," saying the company would support corporations in embedding AI across their businesses, from AI consulting to buildout, management, and operations. Bespin Global created an "AI·Data BC (Business Center)" and put Vice President Han Sun-ho, who led Watson AI at IBM, in overall charge. The AI value chain BC and the enterprise and emerging business institutional sector are overseen by Vice President Han Dae-young, while the public projects unit and the "AI Platform BC" organization are led by Vice President Kang Jong-ho. In addition, for the "Google BC," which handles enterprise AI service capabilities, it reappointed Executive Vice President Park Jun-yong.
◇ Bespin Global increases external borrowing fund to invest in overseas subsidiaries
MegazoneCloud has been seeing the results of its overhaul since last year. Last year, AI- and security-related revenue each exceeded 370 billion won and 70 billion won, respectively.
By contrast, according to Bespin Global's released 2025 consolidated audit report, the company's "cash flow from operating activities," a metric showing how much cash it generated from its core business last year, was minus 5.1 billion won, while "cash outflows from investing activities," which are expenditures on assets, equity, and facilities for future growth, were minus 32.6 billion won. In other words, the company did not invest with money it earned, but rather brought in funds from outside to invest. Last year, Bespin Global's short-term borrowing fund increased by 18.8 billion won and long-term borrowing fund by 3.3 billion won. Most of those funds—23.2 billion won—flowed to its Singapore subsidiary.
In particular, last year financial liability stood at 142.5 billion won, of which 108.7 billion won is due within three months. An accounting expert said, "With operating profit in the red, unless Bespin Global holds 100 billion won in three months, it will again have to bring in outside money to repay borrowing fund coming due," adding, "The pace of earning money is not faster than the pace of borrowing, and cash flow is deteriorating." In response, a Bespin Global official said, "Expenditure increased for research and development (R&D) of customized solutions at the U.S. subsidiary," and added, "As we have confirmed revenue from expanding the business with AI at the Korea subsidiary, this business model should soon deliver results globally." Looking only at the Korea business, Bespin Global last year logged 433.1 billion won in revenue and 3.9 billion won in operating profit. On the sharp rise in borrowing fund, the company explained, "In 2023, we established a joint venture (JV) with EAN Enterprise in the Middle East, and funds were injected from the Singapore subsidiary to expand in the Middle East," adding, "We did borrow due to the Middle East war, but execution is on hold."
Lee Kyung-joon, head of investments at Aeall Asset Management, said, "Recently, the Korea Exchange (KRX) has moved to strictly review listings unless companies show sustained results in AI with numbers," adding, "Without proof in the results, a successful IPO is difficult." He added, "MegazoneCloud appears likely to be able to file for review around the first half of next year, while Bespin Global will likely take more time."