Fujitsu 2013 Annual Report Download - page 42

1 Company A 30.7%
2 Company B 27.6%
3 Company C 15.9%
4 Company D 5.2%
5 Fujitsu 4.0%
6 Others 16.5%
(Source: IDC Worldwide Quarterly Server Tracker
2013 Q1)
(Source: IDC The Worldwide Black Book Q1 2013) (Source: Ovum, ON Market Forecast: 2012–18,
April 2013)
0
20
40
80
60 54.9 56.6 57.6
55.8
2012 2014 2015 20162013
54.8
0
1,000
2,000
4,000
3,000
3,491 3,723 3,807
3,641
2012 2014 2015 20162013
3,561
(Billions of U.S. dollars) (Millions of U.S. dollars)
GRAPH 1 GRAPH 2 GRAPH 3
Global Server Share in 2012
(Revenue Basis)
Global Server Market Forecast North American Optical Network
Market Forecast
6
2
3
4
51
2012 Global Market Trends
System Products: The server market in
Japan contracted 5.0% year on year to
US$5.9 billion. The market for mainframe
servers moved briskly on large-scale
projects, while the x86 server market
performed strongly as the average unit
price increased due to higher internal
memory and HDD capacity. On the other
hand, the reduced instruction set com-
puting (RISC) server market, including
UNIX servers,encountered various head-
winds such as a demand shift to x86
servers and a decline in sales volume due
to server integration.
The global server market contracted
1.0% to US$54.9 billion, mirroring the
domestic market with demand continu-
ing to shift from mainframe and RISC
servers to x86 servers. Despite muted
investment sentiment in the U.S. and
Europe, the market expanded in China
and other Asian countries. GRAPH 2
Network Products: In Japan, the optical
transmission market grew year on year.
Although Next-Generation Network
(NGN)-related investment ran its course,
growth was driven by ongoing invest-
ment to enhance backbone infrastructure
in order to cope with the rollout of LTE
and increased data traffic. The IP equip-
ment market, including routers, saw
steady growth atop continued investment
to enhance carrier routers in the face of
increasing traffic, along with strong
investment in router switches for use in
LTE base stations. The mobile infrastruc-
ture market also reported year-on-year
growth. This was on account of invest-
ments into 3G, despite having peaked, in
combination with the full-scale rollout of
LTE services that expanded investment in
LTE base stations and other equipment.
The North American optical transmis-
sion market contracted compared with
the previous year as carriers redirected
their investments into LTE and other
wireless systems. However, companies
continued their investments to
strengthen mobile backhaul and other
backbone infrastructure to cope with the
rollout of LTE and increased data traffic.
Outlook for 2013
System Products: The server market in
Japan is projected to decline by 6.3% to
US$5.5 billion. The x86 server market is
expected to maintain growth given the
penetration of cloud computing and
mobile devices; however, the mainframe
server market is forecast to contract at a
double-digit rate on a back-swing from a
particularly strong period of large-scale
project activity in 2012.
Globally, the server market is expected
to edge 0.2% lower year on year, to $54.8
billion. This projection is on account of
anticipated market expansion in China
and other Asian countries, offset by a shift
to low-cost x86 servers and a continued
investment restraint in regions such as
Japan, Europe and the U.S. GRAPH 2
Network Products: In Japan, the optical
transmission market is projected to
receive a boost from investment to
upgrade networks to the 100 Gbps stan-
dard from the second half of 2013. In the
IP equipment market, including routers,
the wave of investment to cope with
increased traffic is projected to run its
course, but the market is nevertheless
expected to see an increase in demand
for LTE-related routers, switches, and
other devices. The mobile infrastructure
market is forecast to edge higher year on
year as expanding investment in LTE-
related equipment covers the decline in
3G investment.
In North America, the optical transmis-
sion market is forecast to see continued
investment in 2013 for enhancing mobile
backhaul systems and other backbone
infrastructure as major mobile communi-
cations carriers compete to roll out LTE
amid surging network traffic driven by
the increasing prevalence of smartphones.
The market is forecast to expand year on
year as the greater volume of traffic is
expected to spur the introduction of 100
Gbps systems, following on from 40 Gbps
systems. GRAPH 3
Fiscal 2012 Business Results
The System Platforms sub-segment,
comprising System Products and Network
Products, reported sales of ¥555.1 billion,
Market Trends
Operational Review
and Initiatives
040 FUJITSU LIMITED ANNUAL REPORT 2013