Fujitsu 2009 Annual Report Download - page 35

0
20
40
80
60 57.1
53.1
50.7
48.7
49.4
2008 2009 2010 2011 2012
base station operations and increased sales of routers for com-
munications carriers.
Outlook for Fiscal 2009
Market Trends
System Products: The Japanese server market is expected to
contract 17.1% in fiscal 2009 to US$5.1 billion. Demand for blade
servers is projected to rise with customer needs for server consoli-
dation and virtualization. Nevertheless, the overall server market
in Japan will likely face challenging conditions for some time, with
the eroded upgrade demand for mainframe servers and stagna-
tion in the UNIX server market. The global server market is pro-
jected to decline 13.5% to US$49.4 billion, due to adverse
economic conditions in Europe and the United States.
Network Products: The 2009 Japanese network equipment
market should continue to be firm with NGN investment by tele-
communication carriers supporting sales of optical access devices,
optical transmissions systems, and routers and other IP devices.
The mobile infrastructure market is projected to decline year on
year, due to a lull in investment ahead of the full-scale rollout of
LTE in 2010.
Meanwhile, the value of the North American optical trans-
mission market is expected to fall by about 10% year on year as
major carriers scale down investment.
Initiatives Going Forward
System Products: The growing importance of IT as social infra-
structure in recent years has boosted demand for mission-critical
systems. Servers with superior reliability, quality and performance
are vital as platforms for answering this demand. Fujitsu seeks to
expand its business globally based on products (centered on
servers) and services.
To this end, Fujitsu converted Fujitsu Siemens Computers into
a wholly owned subsidiary after acquiring the 50% stake in the
company held by Siemens of Germany and changed the subsid-
iary’s name to Fujitsu Technology Solutions. Using Fujitsu
Technology Solutions as a springboard, Fujitsu will reconfigure
the global sales framework, and improve development and man-
ufacturing efficiency to enhance the base supporting its IT ser-
vices business globally. In May 2009, Fujitsu began by launching a
high-performance blade server developed by combining Fujitsu’s
and Fujitsu Technology Solutions’s design and quality assurance
technologies. Supplying competitive global products of this kind,
Fujitsu is targeting annual sales of 500,000 units of x86 servers in
fiscal 2010.
Network Products: Conditions will remain tough for Fujitsu with
costs for developing new technologies and new product models
rising each year. The rise in costs is driven by the shift to NGN and
increasing network complexity, two trends that are advancing in
Japan and elsewhere.
To improve profitability, Fujitsu is developing global products,
expanding services for communications carriers, such as design,
construction, maintenance, and operation of communications car-
rier networks, and unveiling solutions that integrate products and
services to boost earnings. Fujitsu employs the collective capabili-
ties of the entire Group to enhance development efficiency and
design. This is part of an extensive drive to raise efficiency and rein-
force our business structure.
(Billions of dollars)
(Source: IDC The Worldwide Black Book Forecast
Q1 2009)
Global Server Market Forecast Global Server Share in 2008
(Revenue Basis)
Server Share in Japan 2008
(Revenue Basis)
Market Data
(Source: IDC Worldwide Quarterly Server Tracker
2009 Q1)
(Source: IDC Japan, Japan Server Quarterly Model
Analysis, 2009 Q1)
Company A
Company A
Company B
Company B
Company C Company C
Company D
Company D
Others
Others
Fujitsu
4.8%
Fujitsu
21.4%
Company A 31.8%
Company B 29.6%
Company C 11.6%
Company D 10.1%
Others 12.1%
Company D 8.8%
Others 15.4%
Company A 20.2%
Company B 18.9%
Company C 15.2%
PERFORMANCE Operational Review and Outlook Technology Solutions/System Platforms
033
ANNUAL REPORT 2009
FUJITSU LIMITED