Fujitsu 2013 Annual Report Download - page 60

APAC, CHINA
Market Trends
China’s IT market is expected to continue
experiencing high levels of steady growth.
This is despite a slight slowdown in the
economic growth rate as the government
curtails investment based on concerns
about excessive manufacturing sector
capacity and rising real estate prices. Over
the medium and long term, the country’s
economic structure will shift from depen-
dence on exports to being driven by
private-sector domestic consumption. IT
investment will increase with greater
urbanization and foreign corporations will
gain more of a presence in the country. IT
investment in 2013 is projected to rise
11.1% year on year, with strong growth
expected to continue at an average
annual rate of 9.6% for the period from
2012 to 2016. GRAPH 1
This investment growth is expected to
continue given that China’s 12th Five-
Year Plan for state policy specifies infor-
mation networking as an area for
strategic development and cultivation.
In Asia-Pacific (APAC), excluding China,
growth in the IT market is projected at
7.1% in 2013. Going forward, countries
will push ahead with infrastructure
upgrades in line with economic develop-
ment, and growing companies will
continue their IT investment. For the
period from 2012 to 2016, IT spending
in the region is projected to remain
strong with growth of around 6.9%
annually on average.
In ASEAN countries, despite concerns
over sluggish European economies and
the impact of restrained investment in
China, necessary public and private-
sector IT investment should continue to
increase amid growth in consumer
spending and capital expenditure. In the
East Asia region, the IT market is
expected to grow at a slower pace, due
in part to the negative impact of South
Korea’s strong won on its exporters.
In India, internal demand, centered on
public works projects and consumer
spending, along with external demand in
areas such as software services as an
export industry, are expected to bring
about high economic growth. Against
this backdrop the willingness to invest in
IT is increasing, with a projected rise of
13.6% in 2013, and a strong average
annual growth rate of 14.6% between
2011 and 2015.
In the Oceania region, conditions will
remain susceptible to China’s economy,
since China is a major destination for the
region’s exports. However, economic
growth is projected to remain firm,
supported by steady demand for natu-
ral resources. Accordingly, IT invest-
ment is expected to continue
expanding during 2013. GRAPH 2
Initiatives Going Forward
In China, Fujitsu was impacted by the
postponement and freezing of tenders by
the government and state-owned
enterprises in connection with deteriorat-
ing Japan-China relations. Nevertheless,
we will continue to participate actively in
projects led by telecommunications
carriers and the public sector, including
government institutions, while collabo-
rating with local partners. As Japanese
companies move from China’s coastal
areas to inland areas and regional cities,
Fujitsu will support efforts to strengthen
their IT systems. We will also develop
business with global companies and
local Chinese enterprises by working
closely with local Fujitsu Group offices.
By business sector, in the datacenter
and cloud services business, we will
promote business deals relating to cloud
services by taking full advantage of
collaboration with local partners.
For the platform business, we will
further promote business in existing
channels centered on x86 servers and
storage, incorporating them into solu-
tions so as to expand value-added busi-
ness sales.
In the ASEAN region, Fujitsu will
expand in three areas: business services
to Japanese corporations, the datacen-
ter business, and the application devel-
opment business. We are also utilizing
the Fujitsu Global Cloud Platform to
achieve growth in the cloud services
business. In addition, we aim to expand
the platform business in fast-growing
Indonesia, which is the ASEAN region’s
largest market.
Explanations for underlined words can be found in the glossary on page 147-148.
058 FUJITSU LIMITED ANNUAL REPORT 2013