Daekyo CNS Acquires Handreamnet, Expands Into Security Business
TECHWORLD ·
✦ AI Summary
As companies increase their use of AI, the importance of cyber threat detection at network touchpoints and security capabilities to block internal spread is growing.
According to IDC, revenue in the campus and branch Ethernet switch market in the second quarter of 2026 reached USD 6.6 billion, up 15.7% from a year earlier.
Daekyo CNS acquired Handreamnet in July, expanding into the network security business and pursuing collaboration and customer expansion linked to its server and IT infrastructure business.
As companies increase their use of AI, the industry on the 22nd said that the importance of capabilities to detect cyber threats at network touchpoints and to block internal spread is growing. Amid this trend, demand for network security is also expanding.
Market growth is continuing as well. According to IDC (International Data Corporation), revenue in the campus and branch Ethernet switch market in the second quarter of 2026 reached USD 6.6 billion, up 15.7% from a year earlier.
Against this backdrop, Daekyo CNS selected security as a new business area and expanded into the network security business. Its existing business was servers and IT infrastructure, and Daekyo CNS is pursuing greater business synergy by linking its existing business with Handreamnet's technology.
Daekyo CNS acquired Handreamnet in July. Handreamnet has network security technology capabilities, and at the time of the acquisition, Daekyo CNS cited Handreamnet's in-house R&D capabilities, production capabilities, accumulated technology over many years, customer trust, and domestic and overseas business experience as evaluation factors.
Handreamnet is a company specializing in network security. In 2007, Handreamnet became the first in the world to commercialize a network security switch that directly detects and blocks harmful traffic at the switch level. Its flagship product is 'SubGATE (SubGATE),' and it has secured about 40,000 customer companies in 12 countries worldwide, including Japan.
Daekyo CNS plans to focus first on linking Handreamnet's technology and market experience with its existing IT infrastructure business. Daekyo CNS is pursuing ways to leverage its server and IT infrastructure customer and partner network alongside Handreamnet's customer base. The two companies plan to promote cross-selling with the goal of jointly proposing products and services.
Going forward, the two companies plan to gradually expand the scope of their collaboration from simple product sales to integrated business. To that end, they are considering a plan to integrate and propose servers, networks, and security from the design stage of SI and IT infrastructure projects. They are also considering establishing a business framework that links not only product supply but also design, deployment, maintenance, and operations management. Initially, they will work on sharing customers and distribution channels, and later they plan to develop this into a long-term cooperation model that also covers project orders and linked operating services.
Daekyo CNS is planning to expand its business areas. Using Handreamnet's foothold in the public sector market, it aims to target private companies, manufacturing, and OT as areas for customer expansion, and in line with that it plans to gradually advance AI-based threat detection and analysis technology, security policy automation technology, and technology to respond to cloud environments.
Daekyo CNS is also pursuing diversification of its revenue structure. Its existing revenue sources are equipment sales and project-based business, and it plans to broaden revenue streams by adding licenses, maintenance, and operations management as recurring revenue items. Through this, Daekyo CNS is pursuing a sustainable commercialization plan for network and security solutions.
A Daekyo CNS official said the starting point for synergy would be connecting each company's strengths and customer base rather than pursuing a large-scale integration. The official also said Daekyo CNS plans to combine its server and IT infrastructure business with Handreamnet's network and security products, adding that it intends to expand options for customers. In addition, the official said the company plans to create new business opportunities by leveraging the customer and partner networks of both companies.
The speaker said that based on the business cooperation mentioned earlier, the company plans to build a new business model grounded in business cooperation as a mid- to long-term plan and expand the foundation for long-term growth. To that end, the company said it will promote a new business model that connects network, security, AI, and cloud technologies to create a structure capable of sustainable growth.
Source: TECHWORLD · Kim Hye-jin
Original: https://www.epnc.co.kr/news/articleView.html?idxno=407296
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Source: TECHWORLD
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