Curious how Cloudike could work up to 10X as fast as Dropbox in places like South Korea? Yes, there’s very interesting telecom work being done outside the U.S.
Korean and Russian startup Cloudike offers white label B2B cloud solutions targeting developing countries in Eastern Europe and East Asia. They claim that their cloud storage service beats out big names like Dropbox in Korea, with up to 10 times faster data transfers than the competition.
Founded in 2013 by Korean Sun Ung Lee and Russians Max Azarov and Dmitry Malin, the company currently has 50 employees. With the two main offices in Russia, co-founders Azarov and Malin come to the project with backgrounds in Google and local search engine Rambler. The idea to enter the cloud service came about when the trio worked together at LG’s offices in Russia in 2010, where the company had already begun implementing the cloud for their smart devices.
An unlikely team seeking new markets
In speaking with Lee, he explains to Geektime that the company has decided to focus on emerging markets in places like Russia and Turkey. The two factors driving this direction are the lack of Amazon Web Services (AWS) servers in many of these locations like Turkey and Korea, and the fact that the local IPs and telecoms know best how to work with their local customer bases, who are already familiar with the local brands. Additionally, the Russian market alone offers a population of 140 million versus the much smaller 50 million people living in Korea.
Comparing the importance of transfer speeds to the success of cloud services according to location, Lee notes that, “If we go to America, then Dropbox is faster. Personal cloud needs to be a local business due to the speed. If there is low speed, then people won’t use your service.”
“Dropbox is (taking only 2% of the Korean market) much slower in Korea since it is based on AWS to provide service.” Lee continues, “Cloudike uses Korean Telecom, which translates to much faster transfers for our users. Countries like Russia, Turkey, Korea and others have slower speeds than in the US and need local solutions to work more efficiently.”
Bringing a competitive advantage moving forward
By marketing to IPs and telecoms in emerging countries like Korea, Russia, and Turkey, Cloudike is able to bring a number of key advantages to the table against their competitors. Developing a stable cloud storage system can be expensive and take long time to put in place for a local provider. Acting as a white label, they can bring their services to these high potential markets at a lower cost to their corporate customers.
Other white label brands like Synchronoss and Funambol are direct competition, depending on local telco servers. However, the speeds these companies offer are significantly lower compared to Cloudike, partially because they use relational databases whereas Cloudike uses a NoSQL database. The company is taking the initiative to start projects with local enterprise players KT, one of the largest telecoms in the country, and manufacturing giant Huawei in China.
They have also implemented a smart security system that stores user data in small packets that are dispersed throughout their network. In the event of a hack, only a fragment of the user’s data can be exposed, rendering the data unusable to the intruders.
Having received funding during their Series A from Korean VCs BonAngels and Coolidge Corner Investments to the tune of $1 million, they are looking to foreign investors for a larger stake in their Series B that will help them grow the service with tools like integrations with Google Drive and Dropbox.
This startup offers an exciting glimpse at some of the work that is being done to build global solutions outside of the well trodden paths in the U.S. and Western Europe. As more of the world continues to connect, startups like Cloudike can be expected to help guide these essential services and capitalize on their growth.