Fujitsu 2008 Annual Report Download - page 37

OUTLOOK FOR FISCAL 2008
nMarket Trends
System Products: Supported by firm PC server performance, the Japanese server
market is expected to grow 2.3% in fiscal 2008 to approximately ¥651.5 billion, according
to IDC. The global server market, meanwhile, is projected to grow 3.6% to US$60.42 billion,
reflecting continued market expansion in China and other newly emerging economies.
Network Products: The 2008 Japanese network equipment market is expected to grow
by around 1% year on year, with increased NGN investment accompanying the rollout of new
services likely to offset a continued decline in investment in 3G mobile phone base stations.
Despite concerns over a possible economic recession, the value of the North Ameri-
can optical transmission market is expected to increase by about 17% year on year as
major carriers continue to make large-scale investments.
nInitiatives Going Forward
System Products: The growing importance of IT as social infrastructure in recent years
has sparked increased demand for mission-critical systems. System platforms that offer
superior reliability, quality and performance play a vital role in answering this demand
from customers. Fujitsu is one of the few vendors worldwide that develops everything
from mainframe processors to systems in-house. The advanced technology honed
through this process is evident in the mainframe reliability and open-standard economy
delivered by our PRIMEQUEST mission-critical IA servers and our new line of SPARC Enter-
prise UNIX servers developed in collaboration with Sun Microsystems, Inc. Fujitsu’s pro-
motion of these types of competitive products is accelerating global business expansion.
With expansion in the market for data center services also anticipated, we intend to pro-
mote optimal solutions for the components (servers, middleware, OS, virtualization tech-
nology, etc.) that comprise these centers. This will include the development of blade
servers featuring low power consumption and innovative virtualization technologies.
Network Products: In Japan and elsewhere, competition is set to intensify as the shift
to NGN gains momentum, prompting enormous changes in technology and customers’
investment environments.
We have moved forward with the integration of sales and product development
functions to meet customer needs faster and enhance our business structure. In the
optical transmission systems market in Japan, we plan to strengthen the business struc-
ture further by consolidating development and all related production activities for the
Fujitsu Group in Japan into Fujitsu Telecom Networks Limited in July 2008.
Another aim for Fujitsu is to expand business in the global market, which shows substan-
tial growth potential. In optical transmission systems, while we operate mainly in Japan, the
US and Europe, we plan to leverage our No. 1 share of the next- generation SONET market in
North America to expand growth for Metro DWDM and other services. We are also eyeing
entry into the growing markets of BRIC countries. In mobile systems, we hope to leverage
our superior technology to advance globally, primarily through Super 3G and mobile WiMAX
technologies. Fujitsu has been chosen by NTT DoCoMo as a vendor for Super 3G base sta-
tions, and by UQ Communications Inc. as a vendor for its rollout of mobile WiMAXTM.
GLOBAL SERVER SHARE IN 2007
REVENUE BASIS
2007 SERVER SHARE IN JAPAN
REVENUE BASIS
Fujitsu
Fujitsu
4.9%
20.2%
(Source: IDC’s Worldwide Quarterly Server Tracker
Q1 2008)
(Source: IDC Japan, Japan Server Quarterly Model
Analysis Q1 2008)
Company A 31.9%
Company B 28.3%
Company C 11.3%
Company A 19.4%
Company B 17.7%
Company C 16.4%
Company D 10.8%
Others 12.8%
Company D 11.1%
Others 15.2%
GLOBAL SERVER
MARKET FORECAST
(Source: IDC’s Worldwide Quarterly Server Forecast
Q1 2008)
(Millions of Dollars)
0
20,000
40,000
60,000
80,000
58,346 60,421 61,411 62,971 64,214
2007 2008 2009 2010 2011
035
ANNUAL REPORT 2008FUJITSU LIMITED
TECHNOLOGY SOLUTIONS/SYSTEM PLATFORMS