NEC 2012 Annual Report Download - page 12

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2010 2011 2013 20142012
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2010 2011 2013 20142012
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72
CHANGE IN THE ACCESS AND
TRANSPORT MARKET (GLOBAL)
(Billions of U.S. dollars)
CHANGE IN THE SERVICE AND
MANAGEMENT MARKET (GLOBAL)
(Billions of U.S. dollars)
Estimated by NEC based on projections of various
companies.
Estimated by NEC based on projections of various
companies.
volumes of diverse data. In this context, NEC will work
to expand the services business based on its track
record and expertise developed over the years, while
focusing on measures in domains where large IT
investment is anticipated, such as smartphone-related
capital investment, financial sector realignment, and
large systems upgrade and replacement projects. In
addition, NEC aims to win orders for projects related to
the recovery from the Great East Japan Earthquake, as
well as for national ID system projects in Japan and in
emerging countries.
Furthermore, NEC will strive to expand its
overseas business by building global systems that
are increasingly needed by Japanese companies
moving into overseas markets. At the same time,
NEC will enhance its overseas business foundations
mainly through alliances and collaboration with
other companies.
In addition to these measures, NEC will make
upfront investment in future growth. Investments will
be focused on further upgrading and expanding cloud
services, rapidly enhancing technologies such as big
data processing, and bolstering overseas business.
(2) Carrier Network Business
Demand is expanding for high-speed, large
capacity communications systems on the back of
burgeoning growth in data traffic driven by the
popularization of smartphones. Business models
are also changing rapidly. For example, telecom
carriers are now providing their own cloud services.
In this climate, NEC is working to increase sales of
In the Carrier Network business, NEC will
continue to concentrate business resources
in four areas: wireless broadband access,
mobile backhaul, submarine cable systems,
and services and management. In these
areas, NEC can demonstrate its unique
strengths, and high market growth is
expected. Among the four areas, services
and management involves providing
telecom service providers with mainly
software and consulting services designed
to provide platforms for launching new
services or reduce operation and
management costs. It is an area that is
expected to grow at a faster pace than the
growth rate for capital investment in
communication infrastructure equipment.
OSS/BSS*1 is expected to see particularly
high growth overseas, because these
systems enable the integrated operation and
management of increasingly complex
networks. From the standpoint of enhancing
services and raising cost efficiency, demand
is growing for the next-generation of
products that will enable unified operations
by integrating OSS and BSS.
Since the acquisition of NetCracker
Technology Corp. in 2008, NEC has steadily
increased sales centered on OSS
operations. Through the latest acquisition of
the BSS operations of Convergys
Corporation, NEC now has a framework in
place for providing total solutions that fuse
the strengths of both companies.
Going forward, NEC will strive to increase
sales by leveraging the product lineups of
both companies. In parallel, NEC will provide
services that fit the needs of the
communications industry by establishing the
next-generation of OSS/BSS solutions, as it
endeavors to expand this business globally.
*1 OSS/BSS (Operation Support Systems / Business Support
Systems): Collectively refers to network operation support
systems (OSS) and business support systems (BSS) including
billing management and customer support management.
SERVICE AND MANAGEMENT IS A GROWING FIELD
CAGR 4%
CAGR 8%
(At year-end) (At year-end)
Carrier Network Business
Aiming for Global Expansion of the Services and Management Field
11 NEC Corporation
Annual Report 2012