Fujitsu 2010 Annual Report Download - page 53

0
200
800
600
400
499.4
585.9
556.2
529.9
507.5
2009 2011 2012 20132010
GRAPH 2GRAPH 1
(Source: Gartner, “IT Services Market Metrics Worldwide
Market Share: Database” 19 April 2010)
(Source: IDC The Worldwide Black Book Q1 2010)
(EMEA: Europe, the Middle East, and Africa)
* Including intersegment sales
(Billions of U.S. dollars)
–300
0
1,200
900
300
600
632.5
975.6
612.8
769.9
736.3
3.6 3.3
0.1
–0.3
2.0
–3
12
9
6
3
0
2006 2008 2009 20102007
GRAPH 3 (Years ended March 31)
as procurement, shared services, off-
shoring, and outsourcing of infrastructure
and business processes.
The size of the IT services market is
expected to be roughly on par with the
previous fiscal year, edging up 0.7% year on
year. The market condition remains uncer-
tain however, with IT budget cuts by the
UK government (the largest customer for
Fujitsu’s outsourcing business), and fiercer
price competition from competitors.
Server market conditions are expected
to be harsh, particularly in Western Europe,
but the rate of decline is forecast to
improve substantially to a year-on-year
decrease of 3.0%. The market for high-end
servers in particular is expected to con-
tinue to fall sharply as customers curtail IT
budgets and demands shift toward low-
end servers. The market for x86 servers and
mid-range servers is expected to recover
By region, in the UK and Ireland, where
we previously concentrated on providing
outsourcing and other service businesses
through Fujitsu Services Holdings PLC, we
will now strengthen our consulting and
applications solutions capabilities, as well
as the products business, to meet growing
private demand. In continental Europe,
where we have focused on a products
business centered on Fujitsu Technology
Solutions (Holding) B.V., we will now
expand our services business. Through
these changes we will develop a total
solutions business in each region under
the “One Fujitsu” banner.
In the IT services sector, Fujitsu will
actively pursue the use of offshore and
near-shore resources to enhance price
competitiveness. We will continually
improve the customer-centric services in
which we excel, enhance service quality
as a result of growing needs for cloud
computing and other services. The storage
market is expected to remain severe, in
tandem with the server market, but the
rate of decline is forecast to improve
substantially from the previous year. The
and reduce costs by adding service value
to products, and actively pursue IT service
standardization. We believe these steps
will help us to win more large-scale out-
sourcing projects in the UK and continen-
tal Europe. For the expanding cloud
computing business, Fujitsu will deploy a
cloud computing platform in the UK and
Germany during the fiscal year ending
March 2011, in accordance with its global
cloud computing strategy.
In products, Fujitsu aims to achieve
sales of 500,000 units of x86 servers glob-
ally, mainly through Fujitsu Technology
Solutions. We have centralized develop-
ment of x86 servers in Germany, particu-
larly blade servers that offer promising
growth, in order to accelerate develop-
ment, reduce costs, and offer products
based on a global standard. For the stor-
age product ETERNUS, we have begun a
PC market is expected to expand consider-
ably in terms of units sold, with growth
centered on such areas as Eastern Europe
and Africa, but is forecast to shrink 1.9% in
value as prices fall with the growing
market share for netbook PCs.
full-scale roll-out in the European market,
and we aim to expand the business
together with servers.
Fujitsu will also bolster strategic alli-
ances to expand its offerings and
strengthen capabilities.
(Billions of yen) (%)
Net Sales* and Operating
Income Margin
IT Market Forecasts (EMEA)Share of 2009 IT Services Market
in the UK (Revenue Basis)
Company B
6.3%
Company E
3.6%
Others
67.9%
Company A
6.8%
Company C
5.8%
Fujitsu
4.8%
Company D
4.7%
Net sales (left scale)
Operating income margin (right scale)
051
FUJITSU LIMITED Annual Report 2010
Initiatives by Region EMEA