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Solutions (part of the Fujitsu group), have announced its 3-key
pronged strategy for the next 3 years at the company's recent forum
for partners, staff, and customers held at the International Congress
Center in Munich, Germany on November 9-10th November. The company
showed its firm commitment and passion for its hardware business,
before the 10,000 massive gathering including its partners, customers
and analysts, from almost 80 countries. However, customers and
partners from India were relatively quite low in numbers. After the
completion of Siemens Fujitsu's joint venture in the year 2009, the
Fujitsu has been transformed into Fujitsu technology solutions. It
has increased its revenue to €4.38 bn and has written the most
profitable half-year in the company's history.
Rolf Schwirz, CEO, FTS in
his keynote delivery outlined the three main strands to his strategy
for the year 2015. The company will be investing and looking at
organic growth for improving operational excellence and more
investment into sales, maintenance services, and also redesign of
internal processes. The second strategy, which holds more importance
for the Indian market is its focus to expedite its business
operations in emerging countries, and the third and the last is
growing the solution offerings and aggressively entering the cloud.
FOCUS IS INDIA
In an exclusive interview,
Schwriz told The DQ Channels, “Fujitsu never had any
holistic approach for the emerging or regional markets. Having said
that, this year we had seen 200% growth in the Indian market. Despite
the fact that we began our India's operation in the year 2009.
Nevertheless, we are not too late yet, and our plans and ambitions
are too high for the Indian market. We want to become €250 mn
company in India by 2015 in India. It's like an explosion for us.
However, presently, the contribution coming from India is very low.
He further added, “In the next year, we are looking at the
acquisition of local company in India for our services business.
Presently we understand the market and
soon we will announce our first acquisition in the Indian market.”
Giving more insight about
the plans specific to the Indian market, Dubai based Niamh Spelman,
senior VP, emerging market, FTS, said, “We were under-represented
in India, and we had a small presence in the Indian market. Inspite
of our Pune based global delivery, which is catering to our global
customer's services and contributing massively in the overall
global revenue, our share in the domestic market is still not
significant. Hence, one of my key initiatives is to penetrate the
local market with the help of local team. Our focus is to penetrate
business hubs and then get into local territories significantly and
the development of channel in big way.” “In emerging countries
like China, Russia, and Middle East, we have our set targets to
double up our growth in 2015. We want to double business in
emerging markets by 2015-we are currently at €800 mn in revenue,
but we want that to be €1.6 bn by March 2015. But in India, we have
already achieved 200% growth and next plan for India is to see 10
fold growth in the next 3 year,” she highlighted.
Moreover, our entire
strategic plan for India is approved by our HQ in Tokyo. Moving
forward, we are in the ramp up phase and going to double manpower
from 100 to 200. The next growth areas for Fujitsu will be server,
storage, and channel. In the nutshell, we are aiming at 65% of our
business coming from IT infrastructure and 35% from services. To
achieve this mammoth growth, we are investing $10 mn in the next 3
years,” said Spelman. Apart from this, Fujitsu is also evolving new
pricing strategy for the
Indian market. “We want to gain market share so we want to make our
products attractive, we will have a more aggressive pricing strategy
than other markets where we had large market share,” added Schwirz.
BIG NOISE ABOUT CLOUD
The third growth pillar is
business solutions and cloud. As Schwirz puts it, “This is the most
important part of the strategy-30% of business is to stem from
cloud computing in 2015. In that cloud vein, Fujitsu announced major
plans. Firstly, Fujitsu is launching a new business solutions store,
which will be available for use by buyers in early 2012. The deal is
that ISVs of any size can put their solutions into Fujitsu's cloud
creating a joint offer for the customer. There is no cost for the ISV
to get Fujitsu-forum-2011 involved, and the commercial setup is based
on a revenue share model. Additionally, the store gives partners
access to billing and ID management capabilities, so in theory, the
store is equally viable for ISVs, both large and small. Also 'hitting
the shelves' early next year is a new CRM solution that involves no
upfront payment and no lock-in.
GROUND REALITY
Pallab Talukdar, CEO,
Fujitsu India said, “Since May 2009, we appointed a local
management team and selected the right channel partners. The last
couple of years have been good for our business. We added around 250
new customers in the country and have doubled growth. There has been
triple digit growth in all 3 categories of our offerings viz. Server,
storage, and workstation.”