Koh Soon-dong

By Kim Yoo-chul

Information technology solutions firm Samsung SDS has taken a meaningful step toward smart convergence, which means a combination of digital devices, networks and software.

Attention is being focused on whether the company can revive its stalling business momentum outside the Korean Peninsula by striking a ``sizable deal.’’

On Monday, SDS said it has been chosen by Saudi Arabian Oil, a state-run petroleum firm also known as Saudi Aramco as the provider of digital convergence know-how for a building project in the Saudi city of Dhahran.

The petroleum company is currently building Saudi Aramco’s King Abdulaziz Center for World Culture. It will feature cutting-edge technology, which will incorporate hardware and software. Under the agreement, SDS plans to provide its digital space convergence (DSC) solutions on the project, SDS said in a statement.

``The project, which marks the 75th anniversary of Aramco’s establishment, includes three big parts ― construction, IT and exhibition. SDS is participating in the IT package,’’ the company said.

This is one of the best chances for SDS to raise its international profile following previous struggles for e-government projects, according to SDS officials.

In the statement, SDS said DSC is a part of its ``smart convergence business model’’ and demand is growing thanks to the growing adaptations of Web-connected features in shopping malls and even museums.

The center, if completed, is expected to become a landmark in Saudi Arabia and Armco plans to use it as a ``cultural hub’’ for the entire Middle East. The building is set to house museums, theaters and education centers for children among other facilities.

``Samsung SDS has a track record in providing DSC solutions to the National Museum of Korea and other top local universities including Yonsei University,’’ said a company spokesman.

But the official declined to give further details such as financial contracts citing the sensitivity of the issue.

``By clinching this contract, SDS has strengthened its global commerce and is one step closer to achieving this year’s goal of making 30 percent of its total sales in the global market,’’ said the spokesman.

SDS, led by the Chief Executive Officer Koh Soon-dong, identified cloud computing, mobile technology and IT logistics services as the company’s new cash generators earlier this year. Koh said SDS will rise by 30 percent in terms of total revenue by the end of the year from 2011 helped by orders from overseas.

The company has recently restructured its divisions as part of a desperate strategy to earn more abroad, though the company declined to unveil further details.

SDS plans to invest some 260 billion won in the new fields. It’s set its sights on the Middle East and Africa to sell its patented systems, the firm said.

SDS earned 4.76 trillion won in revenue last year with operating profit of 420 billion won, according to data from the Korea Exchange (KRX).