NEC 2010 Annual Report Download - page 18

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PERFORMANCE BY SEGMENT
FISCAL 2010 PERFORMANCE AND
MAIN ACCOMPLISHMENTS
Business segment sales declined 7% year
on year to ¥866.3 billion. This was mainly
due to restrained IT investment by Japanese
companies, despite steady growth in SI
services for the retail sector and outsourcing
services.
Operating income improved ¥1.4 billion year
on year to ¥53.2 billion, mainly due to fixed
cost reductions.
In fiscal 2010, NEC implemented concrete measures
in our key areas of the “Cloud Service” and “Cloud
System Implementation” businesses. As a result, in
Japan, NEC will provide the global accounting system
to EXEDY Corporation, a major automotive parts
company. This global accounting system is one of
EXEDY’s next-generation core IT systems, and will be
provided as a cloud-oriented accounting service
utilizing NEC’s expertise in implementing proprietary
core IT systems. Together with an automotive parts
production management system developed by NEC, it
is scheduled to start operations from the end of 2011.
Overseas, NEC has reached a basic agreement with
the Telefónica Group on cooperation in a broad range
of cloud businesses. NEC developed the service
platform for the Telefónica Group to provide various
SaaS*1-based applications to small and medium-sized
enterprises primarily in Spain. Furthermore, in
February 2010, NEC and Telefónica Group agreed
to expand these cloud businesses into the Latin
American countries.
FOR FURTHER GROWTH
In order to speed up consolidated business
management, improve operating efficiency and reduce
TCO*2, NEC is working to consolidate its core IT
systems into a cloud computing environment in
tandem with a review of business processes. NEC
Cloud Plaza was opened to showcase examples of the
core system reformation and for customers to actually
experience SaaS-based services. Utilizing this facility,
NEC will propose and expand cloud-related business.
In addition, we established the NEC Biometrics
Excellence Center in Bangalore, India to expand
overseas biometrics identification solutions such as
fingerprinting. Also, the European Cloud Competence
Center was established in Spain to promote cloud
businesses for telecom carriers. With these facilities,
we aim to expand the overseas businesses, taking full
advantage of both our service business expertise in IT,
and our global business expertise in networks.
In other areas, NEC is engaged in the development
of new mobile cloud services with KDDI Corporation,
using SDIO*3 card-compatible RFID multi-reader/
writers embedded in mobile handsets. In this
manner, NEC is actively working to create and
expand new businesses.
*1 Software as a Service
*2 Total Cost of Ownership
*3 Secure Digital Input/Output
IT SERVICES
BUSINESS
SALES
(Billion ¥)
OPERATING INCOME
(Billion ¥)
NEC Cloud Plaza
17 NEC Corporation
Annual Report 2010