Fujitsu-India High on Radar

DQC Bureau
New Update



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.

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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.


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.


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.”