TBR Perspective Fujitsu is shedding its fragmented and regional business structure to create a more tightly integrated company to drive revenue growth across its business units and improve corporatewide profitability. Fujitsu's new growth focus, which was detailed at its 2010 Global Analyst Conference, involves weaving multiple portfolio areas into unified, purpose‐built solutions that enable better interaction between users and the cloud. Fujitsu is leveraging its entire portfolio – from mobile devices to integration services – to create an environment in which data related to societal problems, such as energy and transportation management, is collected in endpoints then transmitted to the cloud for collection and analysis. Like IBM and its Smarter Planet strategy, Fujitsu aims to leverage the collected data to design solutions that address these needs. Impact and Opportunities TBR believes Fujitsu's efforts to leverage pieces of its portfolio to deliver integrated cloud solutions will enable the company to drive profitable growth, corporatewide. Shedding the regional, fragmented structure will enable the company to uncover synergies, poising the company to streamline operations and eliminate redundancies. By doing so, we expect Fujitsu to afford itself with more flexibility to drive investment and expansion in areas of its portfolio that enable cloud computing. Cloud computing and services Fujitsu continues its push into cloud computing through the use of transition services, targeting service sales of more than $171 million (or ¥15 billion) in Japan by FY12. By tailoring cloud solutions to clients' differing needs, Fujitsu is attempting to ease customers into the cloud. TBR expects companies to leverage cloud services for the added value of cost reduction. Fujitsu has the potential to build a name for itself at the global level. However, we believe the organization is best‐suited to target SMBs for growth rather than the large enterprise market, as Fujitsu is still less known outside of the U.K., Japan and Australia‐New Zealand and already targets the large enterprise segment.
Mobile clients After closing the door on its tablet business nearly a year ago to focus on convertible notebook PCs, Fujitsu will re‐enter the race in early 2011 with the release of a Slate tablet. In 1Q11, Fujitsu will launch a Slate as a tool for mobile professionals who are “on their feet” and in need of one‐handed functionality with their compute devices. The Slate will be based on Windows, which Fujitsu believes will enable users to better utilize their core business applications. Additionally, by teaming with Windows for a tablet OS and for the Azure cloud platform, we believe Fujitsu is aligning its mobile device portfolio to act as a client to the cloud. TBR believes Fujitsu will face one major hurdle with its tablet, particularly outside of its core verticals: adoption trends. With strong footprints in EMEA and APAC, we expect Fujitsu to play the role of market educator as often as it serves as a tablet provider. According to Fujitsu, tablet adoption in Europe and Asia trails that of adoption in the Americas, creating both challenges and opportunities for the company. Enterprise hardware: PRIMERGY, ETERNUS and SPARC TBR believes Fujitsu's enterprise hardware businesses – PRIMERGY x86 server, ETERNUS storage and SPARC server – stand to benefit from the company's efforts to integrate and build cloud solutions. By better aligning its portfolio into unified, global brands, which started with the PRIMERGY and ETERNUS lines in 2009, Fujitsu is opening the door to more brand exposure worldwide, as well as to new opportunities to cross‐sell solutions. TBR believes Fujitsu's success in driving growth and improving profitability in its enterprise hardware businesses is predicated on its ability to deliver packaged solutions of compute and storage capabilities with attached software and services. By touting its in‐house capabilities to design, deploy and support infrastructures, Fujitsu is able to paint a high‐value picture to customers, demonstrating its ability to increase the efficiencies of its customers' datacenters. TBR expects Fujitsu's enterprise hardware businesses to benefit from the deployment of private clouds. With an increased focus on bundling its own solutions, we believe Fujitsu's services business will turn to the company's hardware offerings as the backbone for cloud infrastructures, particularly virtualization‐ capable Primergy servers and Eternus storage. TBR anticipates that cloud computing will expand the addressable market for Fujitsu's hardware business, creating new avenues for growth. Event Overview The Fujitsu Global Analyst Conference took place at the Intercontinental Hotel in Boston on Oct. 26 and Oct. 27, ...