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Initiatives by Region
Market Trends
The Japanese IT market is expected to grow by 1.1% year on year
in 2012. GRAPH 2
The domestic economy slumped in 2011 due to the effects of
the Great East Japan Earthquake and Thai flood damage, but a
recovery is expected to emerge in 2012, including a bounce-back
from the previous year. Recovery will likely be gradual in the first
half of the fiscal year due to European economic trends, foreign
exchange trends and other uncertainties, as well as efforts to
cope with anticipated electricity shortages during summer. Full-
scale economic recovery is set to occur from the second half of
the fiscal year, mainly in the manufacturing and distribution
sectors, as the rebound in corporate earnings and progress in
rebuilding from the earthquake become clear. In the public
sector, measures to bolster disaster resistance have started since
the earthquake, especially at government ministries and agen-
cies. At local governments, deals to rebuild mission-critical sys-
tems have peaked, and in the healthcare field, regional medical
collaboration is spreading.
Amid these trends, the server market in Japan is expected to
contract more than 10% compared with the previous year. This is
in large part due to a decline in the portion of supercomputer-
related shipments recorded in the previous year. Anticipated
contraction in the market, including lower prices, also reflects the
growing use of datacenters with a view to risk avoidance, and
projected acceleration in the trend toward server integration
and consolidation.
Meanwhile, the Japanese telecommunications market is
expected to grow 4.8% year on year. Construction of mobile phone
base stations based on next-generation Long Term Evolution (LTE)
technology is expected to continue at a high level from 2011.
Ongoing measures to deal with increased telecommunications
traffic due to the spread of smartphones are also anticipated.
The Japanese IT services market is projected to grow 5.1%
year on year as IT budgets recover gradually along with improved
corporate earnings. Since the earthquake, demand has risen for
use of datacenters with an eye toward business continuity plan-
ning (BCP). Similarly, reviews of IT system operation, as well as
the introduction of new IT services through cloud computing, are
expected to progress further. In addition, new IT usage that
utilizes big data is attracting attention, with the IT services
market poised to expand in the future.
Initiatives Going Forward
In the Japanese market, we will take on the challenge of three
Group initiatives aimed at new growth—bolstering interaction
with customers, enhancing system engineering (SE) capabilities,
and further strengthening our technology. Our corporate struc-
ture has been reconfigured into a matrix organization along
customer and business lines, further clarifying the account sales
structure and bolstering sales capabilities in both quantitative
and qualitative terms as we pursue higher sales.
In the system products business, mainly servers, Fujitsu is
working to launch products into growth markets and to expand
sales in new and undeveloped markets. To this end, we are
successively launching energy-efficient rack servers for datacen-
ters and bundle servers with virtualization functions for small
and medium-sized businesses (SMBs), targeting mid-range high
performance computers (HPCs), the embedded market, the
datacenter market, and new channels. By introducing a model
GRAPH 1
Share of 2011 IT Services Market Sales
in Japan (Revenue Basis)
1 n
Fujitsu 13.1%
2 n
Company A 9.3%
3 n
Company B 8.7%
4 n
Company C 8.5%
5 n
Company D 7.0%
6 n
Others 53.6%
1
2
3
4
5
6
(Source: Gartner, “Market Share: IT Services 2011” 9
April 2012)
GRAPH 2
(Source: IDC The Worldwide Black Book Q1 2012)
0
50
100
150
200
164.2 166.1 164.9 167.2
166.2
2011 2013 2014 20152012
(Billions of U.S. dollars)
IT Market Forecasts (Japan)
GRAPH 3
Net Sales* and Operating
Income Margin
n n Net sales (left scale)
Operating income margin (right scale)
* Including intersegment sales
0
1,000
2,000
3,000
5,000
4,000
4,229.7
3,400.5 3,396.2
3,789.9
10
8
6
4
2
0
5.7 4.9
2.8
5.2
3,389.2
6.4
2008 2010 2011 20122009
(Billions of yen) (%)
(Years ended March 31)
JAPAN
050 FUJITSU LIMITED ANNUAL REPORT 2012