How will the company's technical infrastructure (cloud computing, servers) be integrated? Will it be built in-house or rely on external cloud service providers?

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Good, regarding the issue of technology infrastructure integration for LINE Yahoo (LY Corporation), let me explain it to you in plain terms.

How will the company's technology infrastructure be integrated? Will it be built in-house or rely on external cloud providers?

Think of this question like: "For a newly merged mega restaurant group, should they build their own central kitchen for the future, or use readily available food supply chain services?"

The answer is actually quite simple: They will pursue both simultaneously. It won’t be a simple either/or choice, but rather a "hybrid" approach.

Why can't they simply choose one option?

Let's first look at the pros and cons of "build in-house" and "use external" options to understand why.

1. Building in-house servers and cloud platforms (The in-house kitchen)

This is like building a massive central kitchen from scratch – buying land, constructing the building, purchasing pots and pans, and hiring chefs, all done yourself.

Advantages:
- Absolute Control: Everything in the kitchen is under your management. Safety standards, ingredient freshness, and cooking processes can be optimized. For companies like LINE and Yahoo handling massive volumes of user privacy data, "security and control" are paramount.
- Tailor-Made: You can customize specialized stoves and tools for your signature dishes (like LINE's messaging) to maximize efficiency and performance.
- Potentially Lower Long-Term Costs: When your scale reaches a certain size (e.g., preparing meals for hundreds of millions daily), building your own kitchen might make the per-meal cost, spread out, cheaper than continuously outsourcing. LINE was already famous pre-merger for its powerful private cloud, "Verda."
Disadvantages:
- Too Resource-Intensive: Huge upfront investment – building a data center can easily cost billions.
- Inflexibility: Suppose you suddenly want to host a food festival requiring 10x the usual capacity; it's hard to instantly expand your own kitchen. Similarly, if a specific business line fails, the equipment tailored for it becomes wasted and idle.

2. Relying on external cloud providers (Using someone else's supply chain/kitchen)

This is like partnering directly with professional food supply companies, such as Amazon AWS, Google GCP, or Microsoft Azure. You simply order what you need.

Advantages:
- Extreme Flexibility and Speed: Hosting a food festival? No problem. Give a heads-up, and the cloud provider can immediately allocate resources. When it ends, you turn them off and pay-as-you-go with no waste. Want to pilot a new service? Spin up servers on the cloud in minutes to quickly test the idea.
- Leave Specialized Tasks to Specialists: You don't need to worry about mundane tasks like data center cooling, power supply, or hardware maintenance; the cloud provider handles it all. They also offer many ready-to-use "advanced tools" (like AI analytics, big data platforms) that you can leverage immediately without developing them yourself.
- Global Reach: If you want to expand your business to Brazil, you wouldn't build a kitchen there first, right? Using a global cloud service lets you deploy services rapidly anywhere in the world.
Disadvantages:
- Potentially High Long-Term Costs: For core services running stably every day, paying cloud providers month after month might eventually become more expensive than building your own infrastructure.
- Relatively Less Control: It's difficult to customize at the deepest levels. To some extent, you have to play by the cloud provider's "rules."

Therefore, LY Corporation's Choice: Hybrid Cloud

Smart leaders know not to put all their eggs in one basket. LY Corporation's strategy will inevitably combine the "in-house kitchen" and the "external supply chain."

You can understand their division of labor like this:

Core, Stable, Highly Confidential Business: Residence in the "In-House Kitchen" (Private Cloud)
- Examples: LINE's messaging and calling systems, Yahoo's core search algorithms, user account systems, etc. These are the company's lifeblood – business volume is stable, and security and performance requirements are paramount. Keeping these under their direct control is the most reassuring and cost-effective. They will continue to maintain and upgrade their strong private cloud platform.
Innovative, Volatile, or Unpredictably Surge-Prone Business: Handled by "External Cloud" (Cloud Providers)
- Examples: Hosting a major online event, launching a new AI application, or testing a new feature with uncertain market traction. These require rapid deployment and potentially experience large traffic fluctuations. Using external cloud services is the most economical and flexible choice.
- Additionally, for overseas expansion or data backup to safeguard against disasters (e.g., earthquakes), storing a backup copy in a different region via an external cloud is a very wise "disaster recovery" option.

In Summary

So, for the question, "How will the company's technology infrastructure be integrated?", LY Corporation's answer isn't a simple "build" or "outsource."

Their strategy is to build a powerful hybrid system:

A self-built private cloud serves as the core base, handling stable and critical operations; simultaneously, they flexibly leverage the elasticity and rich features of external public clouds to support innovation and respond to market changes.

It's like a modern restaurant group: it has a central kitchen guaranteeing quality and secret recipes, but it also partners with the world's top ingredient suppliers and logistics companies. This ensures it can quickly and successfully launch new dishes and open outlets anywhere globally. This integration process will be highly complex, but it is an essential choice for large tech companies to maintain their competitive edge today.