Fujitsu, has entered into the Cloud Computing market

TOKYO (Reuters) – Fujitsu Ltd, Japan’s biggest IT services provider, said on Friday it plans to boost investment in cloud computing by 54 percent this year to beef up its operations in one of the IT sector’s hottest areas.

It will also seek more global partnerships and acquisitions to expand its software and product offerings accessed online, and key targets will include software firms with strong technologies or client bases, president Masami Yamamoto told a news conference.

Fujitsu, the world’s No. 3 IT services vendor after IBM and Hewlett-Packard, plans to spend $1.1 billion on its cloud computing business by March 2011 and aims to grow sales from the operations to 1.3-1.5 trillion yen by 2015/16.

That would be a large increase from about 100 billion yen sales generated last financial year.

“This field offers new challenges but it is also a business chance with big growth potential,” Yamamoto told a briefing.

“We will make a groupwide effort to build up our cloud business this year.”

For the current year to March, Fujitsu expects operating profit to double to 185 billion yen. The company kept its 2011/12 targets for 250 billion yen in operating profit and 130 billion yen in net profit.

Yamamoto said the company can generate about 150 billion yen free cash flow annually, and acquisitions would be a possible use of this cash.

Fujitsu has recently been making headlines over the ouster of former president Kuniaki Nozoe, but Yamamoto reiterated that the scandal has had little impact on its operations.

Shinkin Asset Management fund manager Tomomi Yamashita said there have been market fears that Fujitsu would cut its earnings outlook, and the company’s decision not to change its forecast could be seen as a positive.

He added that recovering IT demand has not been reflected in Fujitsu’s share price.

“They can expect a boost from IT services … I don’t think these expectations are fully factored into the share price, so it’s cheap.”

Fujitsu shares closed up 2.3 percent at 579 yen, outperforming a 0.5 percent rise in the benchmark Nikkei average.

http://ca.reuters.com/article/technologyNews/idCATRE66818120100709

Follow Us!

CloudTweaks

Established in 2009, CloudTweaks.com is recognized as one of the leading authorities in cloud computing information. Most of the excellent CloudTweaks articles are provided by our own paid writers, with a small percentage provided by guest authors from around the globe, including CEOs, CIOs, Technology bloggers and Cloud enthusiasts. Our goal is to continue to build a growing community offering the best in-depth articles, interviews, event listings, whitepapers, infographics and much more...
Follow Us!

One Response to Fujitsu, has entered into the Cloud Computing market

Comics

At CloudTweaks, we're plugged into the cloud, the internet of things and all that the web has to offer. From wearable technology, to mobile computing, cloud computing and big data, CloudTweaks is your source for updates and news on the most innovative technology.

Popular

Top Viral Impact

Cloud Infographic – The Power Of Cloud Disaster Recovery

Cloud Infographic – The Power Of Cloud Disaster Recovery

Cloud Infographic – The Power Of Cloud Disaster Recovery Preventing a Cloud Disaster is one thing. Recovering from a disaster is a whole other area of concern. Today’s infographic provided by CloudVelox outlines some best practices and safeguards in order to help your business make more informed decisions. About Latest Posts Follow Us!CloudTweaksEstablished in 2009,…

5 Considerations You Need To Review Before Investing In Data Analytics

5 Considerations You Need To Review Before Investing In Data Analytics

Review Before Investing In Data Analytics Big data, when handled properly, can lead to big change. Companies in a wide variety of industries are partnering with data analytics companies to increase operational efficiency and make evidence-based business decisions. From Kraft Foods using business intelligence (BI) to cut customer satisfaction analysis time in half, to a…

The Business Benefits of Cloud CRM

The Business Benefits of Cloud CRM

The Business Benefits of Cloud CRM From software deployment, to mobility, to wearable technology, cloud computing has transformed seemingly every aspect of modern business. Research indicates cloud applications and platforms will be at the forefront of IT spending by 2016, with half of all enterprises implementing cloud solutions by 2017. One of the quickest markets…

Cloud Computing Offers Key Benefits For Small, Medium Businesses

Cloud Computing Offers Key Benefits For Small, Medium Businesses

A growing number of small and medium businesses in the United States rely on as a means of deploying mission-critical software products. Prior to the advent of cloud-based products — software solutions delivered over the Internet – companies were often forced to invest in servers and other products to run software and store data. The…

IBM and SAP Announce Industry’s Largest Cloud Deal

IBM and SAP Announce Industry’s Largest Cloud Deal

IBM and SAP Announce Industry’s Largest Cloud Deal IBM and SAP have shaken the cloud computing world this afternoon with the announcement of one of the largest cloud deals in the industry’s history – bringing together two of the largest technology companies in a bid to offer a more holistic service to their clients. SAP…

Featured Sponsors

Moving From Email Into The Cloud

Moving From Email Into The Cloud

Mobile Collaboration In The Cloud Imagine that you, as a manager, are told by the powers that be that you have to find “efficiencies” within your department that will result in one million dollars of savings annually. You struggle with this. You send an email to everyone on your senior team. “Where can we save…

2015 Advertising Opportunities - Find Out More!

Cloud Logo Sponsors

hp Logo CityCloud-PoweredByOpenstack-Blue square_logo_100x100-01
cisco_logo_100x100 vmware citrix100

Established in 2009, CloudTweaks is recognized as one of the leading influencers in cloud computing, big data and internet of things (IoT) information. Our goal is to continue to build our growing information portal, by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

Contact

CloudTweaks Media
Phone: 1 (212) 763-0021

Join Our Newsletter