Samsung Electronics has made another major investment in the Internet of Things (IoT) space, becoming an early stage Series A investor in Bayshore Networks. The company made the investment via its Samsung NEXT Venture fund, an investment fund created by the company to find and take positions in companies that are driving businesses that will yield future profits for the company.
Who is Bayshore Networks and why did Samsung invest in them?…
Bayshore Networks is a Bethesda, MD based company that bills themselves as “the cybersecurity leader for the Industrial Internet of Things.” Much like the consumer market, which was hit with a major DDoS attack last year – security has become a prime concern for the companies seeking to implement IoT technologies in industrial environments. Bayshore is said to posses technology that both empowers and, more importantly, protects industrial IoT solutions.
Bayshore says their technology provides enterprises “with unprecedented control and visibility into their Operational Technology infrastructure while safely and securely protecting industrial applications, networks, machines, and workers.”
Why Bayshore Networks?
Bayshore Networks was founded in 2012 and has just launched a Series A or early stage venture capital round. The amount of Samsung’s investment was not disclosed by either of the parties, but the media in Korea is saying sources have indicated that the company “has made millions of dollars of investments” into the equity of Bayshore Networks.
“Samsung NET shares our vision for an internet of things ecosystem strengthened by safety, cybersecurity and other enabling technologies,” said Mike Dager, CEO of Bayshore Networks in a prepared statement. “Samsung’s leadership in IoT and their commitment to developing and supporting solutions that power the IoT world makes us very proud to receive their support.”
Implications Beyond Industrial IoT
So…OK…Samsung is interested in the industrial IoT game. Why should Strata-gee.com readers care? Take a look at what the head of the company’s NEXT Ventures said in the prepared statement.
“Bayshore’s management team impressed us with their strong IT and OT experience, and we were encouraged by the company’s traction in securing industrial networks from inside,” said Raymond Liao, Managing Director at Samsung NEXT Ventures. “Their technologies also fit broader IoT applications which could be of interest to Samsung.” [Emphasis added]
Where We Think Samsung is Going With This
We think Samsung has designs on applying Bayshore’s technology to consumer IoT as well – making this investment of much greater significance to Samsung – and potentially to the industry overall. But is Bayshore really viewed as a potential major player in IoT security?
According to ETNews, not only has South Korea’s Samsung invested in Bayshore Networks, but the company has also received a major investment from Japan’s Yokigawa Electric – the world’s largest electronic measuring instrument manufacturer. Says ETNews: Bayshore Networks “is seen as a company that has unparalleled technologies in IoT field in the world.”
True Commitment to IoT
Given the current management upheaval at Samsung, we find it interesting to see the company is still continuing to execute on its strategic vision. The company has made a major commitment to IoT, including the purchase of U.S.-based Smart Things in 2014. This investment into Bayshore Networks is yet another example of that commitment.
Learn more about Bayshore networks here: www.bayshorenetworks.com.
Keep up to date on Samsung here: www.samsung.com.