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The Americas
n Market Trends
Growth in the North American IT services market in 2008 is expected to slow to around
4%, as the subprime mortgage crisis, soaring prices for crude oil and other negative
factors take their toll on the pace of economic growth. The server and storage market is
expected to see growth rates fall to around 2% from 2008 onward, despite the antici-
pated full-scale uptake of virtualization technology. In contrast, the IT services field is
likely to witness growth in outsourcing, particularly for application management and
hosting, and in business process outsourcing (BPO). Growth will be supported by
healthy demand from the corporate sector, as companies seek to leverage the effective-
ness and convenience of network-based systems.
Despite an anticipated decline in capital investment by telecommunications carri-
ers in response to the emerging economic slowdown, the communications market is
expected to grow further thanks to an ongoing increase in the number of optical fiber
subscribers as the demand for so-called “Quadruple Play” (voice, data, wireless and video
streaming) services increases. Moreover, as the move to IP networks accelerates, this will
spur a switch from Synchronous Optical Network (SONET) to Wavelength Division
Multiplexing (WDM), and stimulate increased demand (Packet Transport and Wireless
Access) with respect to next-generation communications equipment. Another steadily
emerging trend is to merge functions once spread across various communications
equipment into a single, integrated solution.
n Initiatives Going Forward
In the North American IT services market, we conduct business primarily through three
companies—Fujitsu Consulting, Fujitsu Computer Systems and Fujitsu Transaction
Solutions. Through Fujitsu Consulting, we offer services ranging from consulting to system
integration (SI) and business process outsourcing (BPO). Fujitsu Computer Systems sells
and maintains servers, storage devices, PCs and other computing equipment. Fujitsu
Transaction Solutions, meanwhile, has operations targeting POS, self-checkout and other
areas in the retailing sector. The importance of our presence in the North American market
is rising, both as a function of this market’s growth potential and for the role that these
bases play in supporting customers who seek to advance operations into North America.
We will continue to pursue service-related M&A opportunities and will strengthen col-
laboration among Fujitsu Group companies. Our aim is to expand business by evolving
beyond the simple provision of IT solutions to become a comprehensive business solu-
tions provider for our customers. Specifically, this transformation will entail expanding
sales of the servers and other system products for which Fujitsu is well-known, coupled
with the promotion of a bigger, more robust infrastructure services business, such as data
centers and outsourcing, and services business, such as managed services.
In North America’s communications market, we operate in the optical transmission
field through Fujitsu Network Communications. Here, we intend to increase Fujitsu’s
market share by leveraging our No. 1 ranking in next-generation SONET market for four
years running to launch products for the growing WDM market. Together with efforts to
concentrate development resources in the creation of integrated devices (i.e., devices
compatible with SONET, WDM and packet-switching network configurations), we seek to
grow Fujitsu’s share in the North American optical transmission market by scaling back
costs wherever possible to offer highly competitive products. We also plan to unveil
aggressive initiatives for WiMAXTM and other areas in the wireless field going forward.
(Years ended March 31)
NET SALES* AND OPERATING
INCOME MARGIN
(Billions of Yen) (%)
Net sales (left scale)
Operating income margin (right scale)
* Including intersegment sales
2004 2005 2006 2007 2008
0
250
500
–5
0
5
10
274.6 298.9
363.4
442.3 469.9
–4.8
1.5
3.7
1.9 2.0
022
ANNUAL REPORT 2008FUJITSU LIMITED
FEATURE 2: ACCELERATING GLOBAL EXPANSION