Fujitsu 2008 Annual Report Download - page 13

We need to adopt a broader, global perspective, rather than focusing so heavily
on Japan. This is another task facing the new management team. We will expand
business globally by leveraging the base Fujitsu has built in developing its
worldwide operations over many years, and by instilling the maxim “Think
Globally, Act Locally” in our operations.
The global IT market is widely expected to expand going forward, largely due to the massive scale
of the market in Europe and the United States, as well as market growth in newly emerging
economies, specifically those in Asia. Clearly, we have little prospect for growth if we focus exclu-
sively on the market in Japan. Fujitsu has long worked to develop operations globally, and was
one of the first IT vendors in Japan to advance operations abroad. Fujitsu Services in the UK has
an impressive track record in securing large-scale outsourcing business deals in Europe.
Despite this record, Fujitsu’s operations outside Japan are still limited to an “Act Locally” frame
of thinking. This is why “Think Globally” is an issue we need to tackle fully in the years ahead. We
launched our “Global Service Innovation Program” as the first
major initiative to solve this problem. This program will enable
us to offer data center and desktop services as common
Fujitsu services anywhere in the world. Moreover, we are
taking advantage of Fujitsu Services and its expertise gained
from various projects in Europe to forge ahead with process
and delivery standardization.
On a global scale, the shift from system manufacture to
system utilization as the driving force behind IT system ser-
vices is expected to gain momentum. Data center competi-
tiveness will be a major issue as this trend unfolds. Right now,
we are investing Fujitsu’s cutting-edge technologies in our
data centers across the globe and giving business process
standardization and workforce training the attention they
deserve. We aim to make services the main thrust of our efforts
to develop Fujitsu’s business globally.
In the Americas, US-based Fujitsu Network Communica-
tions has supplied AT&T, Verizon and other prominent US
telecoms with the latest optical transmission systems as a key
vendor of these products for nearly three decades. We intend
to make the most of this subsidiary’s experience and expertise
in developing operations globally.
Of course, there are limits to the global business expan-
sion that Fujitsu can accomplish on its own. In the past, we
have forged powerful partnerships with Sun Microsystems,
SAP, Intel and other influential global vendors. We are com-
mitted to promoting similar partnerships going forward as
we attempt to accelerate global business development.
Q.7
One of your goals is to
raise the ratio of sales
outside Japan to over 40%.
What measures are you
considering to promote
global business expansion?
A.7
SALES OUTSIDE JAPAN/
RATIO TO TOTAL NET SALES
NET SALES OUTSIDE JAPAN BY REGION AND BUSINESS
IT MARKET GROWTH 20072010
Japan The
Americas EMEA China APAC World- wide
Services 3.5%4.9%5.6%14.7%9.3%5.5%
Software 4.8%7.0%8.6%12.9%8.7%7.6%
Servers 0.4%2.5%0.4%4.6%4.0%1.9%
PCs (1.7%)1.8%4.2%12.7%6.0%4.2%
IT Market Total 2.0%5.5%6.3%10.8%7.0%5.9%
Source: IDC’s Worldwide IT Spending Patterns: The Worldwide Black Book Q1 2008
The Americas represents total sales from North and South America; EMEA is total
sales from Europe, the Middle East and Africa, APAC refers to the entire Asia-Pacific
region, with the exception of Japan and China.
Market growth rate = 7% or more
Market growth rate = under 3%
(Years ended March 31)
EMEA The Americas APAC & China Ratio of sales outside Japan (%)
(Billions of Yen)
(Target)
2005 20072006 2008 2010
0
1,000
500
1,500
2,000
2,500
467.8
1,422.0 556.4
1,825.2
561.9
1,923.6
36.1%
35.8%
33.2%
29.9%
513.6
1,591.5
320.9 472.9 521.9
388.1
633.2 795.8 839.7689.7
40%
011
ANNUAL REPORT 2008FUJITSU LIMITED
A CONVERSATION WITH THE PRESIDENT