SK Telecom Introduces 40% Cost Savings for AWS Cloud Users

SK Telecom has introduced a solution to help businesses reduce their cloud operating costs by 40%, specifically on Amazon Web Services (AWS). SK Telecom’s solution, unveiled on the 11th, targets one of the most widely used cloud platforms, AWS, as it helps companies optimize their cloud-related expenditures.

The core of SK Telecom’s cost-cutting solution revolves around a strategic shift from Intel- and AMD-based servers, which tend to consume substantial power, to ARM-based servers featuring energy-efficient, high-performance CPUs. This transition unlocks the potential for businesses to curtail their operational costs by 20-40%. 

These servers offer a blend of low power consumption and potent computing capabilities, making them a compelling choice for organizations seeking to streamline their cloud expenditures.

The current landscape of the domestic cloud server market predominantly relies on Intel and AMD CPUs. Although Amazon introduced its cloud service in 2021, featuring Graviton servers—ARM-based CPUs known for their energy efficiency and high performance—many companies have hesitated to make the switch. The primary deterrent is the risk of encountering software incompatibilities or severe performance degradation when transitioning servers.

Amazon’s Graviton servers have raised interest in the benefits of ARM-based CPUs, yet the reluctance to embrace them stems from the intricate challenges associated with server migrations. 

While potentially cost-effective, altering server configurations can trigger unanticipated complications, affecting critical software operations and overall system performance. As a result, despite the pull of reduced operational costs, only a handful of companies have taken the plunge into this uncharted territory.

Since the previous year, SKT has undertaken a concerted effort to migrate towards Graviton-based servers, aiming to curtail AWS expenditures for its operations and the broader Information and Communication Technology (ICT) sector. Over 17% of SKT’s cloud utilization now resides on Graviton-based servers.

The company has enlisted a cadre of Graviton specialists who have diligently contributed to developing a proprietary transition solution. This initiative has yielded significant recognition, as evidenced by SK Telecom‘s recent acknowledgment as the sole official partner in Korea by Amazon Web Services (AWS). Only a total of six such partners currently exist within this expansive territory. 

The solution provides guidance for components requiring manual intervention, facilitating a smooth and efficient transition. The solution also includes a feature for comparing the pre-conversion and converted versions of applications, guaranteeing the integrity of essential functions.

SK Telecom will initially target small and medium-sized businesses and startups. Recognizing the financial considerations of these organizations, the company plans to offer a limited-time promotion, enabling them to utilize the transition solution for free until the end of this year. 

This initiative is expected to help diverse businesses to embrace the benefits of Graviton-based servers and the associated cost reductions, thus driving enhanced efficiency in their cloud operations.

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