Fujitsu 2009 Annual Report Download - page 46

0
600
300
900
0
2
6
4
596.9
2.0
612.8
2.0
0.1
3.3
3.6
769.9
736.3
632.5
2005 2006 2007 2008 2009
0
400
600
200
800
572.6
640.2
603.0
569.7
555.3
2008 2009 2010 2011 2012
Market Trends
The IT market in EMEA is projected to
contract by 3.0% in 2009, reflecting the
impact of the global financial crisis
triggered by the collapse of the sub-
prime mortgage market, and the rapid
economic downturn that followed. IT
spending is expected to be uniformly
lower across Europe. Conditions will
be particularly severe in the UK, with
fewer large-scale projects. This is
mainly due to reductions in public-
sector IT budgets, and price revisions
requested by existing customers.
By offerings, the IT services market
should be relatively firm, edging up
0.2% in comparison with the previous
year. The situation is unpredictable
however, with reductions in customer
IT budgets and increasingly intense
price competition. This is notably the
case with respect to projects for UK
central government institutions (the
largest European outsourcing clients)
and the private sector, where we are
aiming to expand.
Meanwhile, the hardware market is
likely to experience negative growth in
virtually all countries. This trend is also
expected in Eastern Europe, Russia, the
Middle East, and other newly emerging
economies that enjoyed high growth
rates until recently, exacerbating the
decline in the European market. The
server market is predicted to worsen
by a substantial 12.1% year on year.
This downturn is expected to be most
prominent in the high-end server
market, due to reductions in customer
IT budgets and a demand shift toward
low-end servers. A similar story is unfold-
ing in the storage market where, in stark
contrast to the stable growth previously
witnessed, demand is projected to
decline by 9.2% in 2009. In the PC
market, a year-on-year spending decline
of 13.2% is forecast on an expected
sharp deterioration in the corporate
sector due to adverse economic condi-
tions, as well as falling prices sparked by
the growing market share of low-cost
“netbook” computers.
Initiatives Going Forward
To strengthen its global business,
Fujitsu made Fujitsu Siemens Computers
a wholly owned subsidiary in April
2009 and changed the company name
to Fujitsu Technology Solutions. While
the business has revolved around serv-
ers and PCs, as a wholly owned com-
pany, Fujitsu Technology Solutions will
now strengthen ties with Fujitsu
Services, shifting from a product-
oriented to a systems-oriented busi-
ness. For the Fujitsu Group, this change
will reinforce its delivery framework,
and serve to expand its integrated ser-
vices and products business.
In the IT services sector, Fujitsu will
be proactive in the use of offshore and
near-shore resources to boost price
competitiveness and expand our busi-
ness in the European market. Steps
will also be taken to enhance our cus-
tomer relationships by bolstering our
sales and customer management divi-
sions and strengthening customer
ties. Specifically, in the expanding
EMEA Europe, Middle East, Africa
(Billions of yen) (%) (Billions of dollars)
Net sales (left scale)
Operating income margin (right scale)
* Including intersegment sales
(Source: IDC The Worldwide Black Book Q1 2009)
(EMEA: Europe, the Middle East, and Africa)
(Years ended March 31)
Net Sales* and
Operating Income Margin
IT Market Forecasts (EMEA) Share of 2008 IT Services Market in
the UK (Revenue Basis)
(Source: Gartner “IT Services Market Metrics World-
wide Market Share: Database” 14 May 2009)
Fujitsu
3.7%
Company A 7.0%
Company B 6.8%
Company C 5.3%
Company D 4.8%
Company E 3.5%
Others 68.8%
Company A
Company B
Company C
Company D
Company E
Others
Initiatives by Region
044 ANNUAL REPORT 2009
FUJITSU LIMITED