Fujitsu shifts gears toward network management technology
Information technology titan sees next-generation software as key to growth
TOKYO -- Japanese tech giant Fujitsu will triple its spending on research and development for network management technology to 15 billion yen ($137 million) over three years.
Fujitsu is developing a system that can flexibly manage companies' networks, in response to the complexities caused by the proliferation of the "internet of things" and cloud technology. The company will also invest in European ventures to expand its network-related services. It is aiming for sales of 50 billion yen from next-generation network technology over the next three years.
The Tokyo-based company will focus on technology known as software-defined networking by investing 500 million yen in Irish software company Ubiqube Solutions. Uniqube develops technology such as SDN that manages and controls the status of a network. Fujitsu will integrate this software into its information technology services.
Fujitsu also plans to invest 15 billion yen in its own SDN-related research and development in Japan and the U.S. The funds will go toward the development of software and system architecture services.
Demand is growing for systems that can manage networks flexibly, swiftly and safely. At present, altering a network configuration requires changes to equipment settings and rewiring. SDN software lets users freely change routing and security settings from a computer screen, eliminating the need for technicians and saving time. The software can also temporarily increase line capacity during busy periods or when there is large volume of data requiring verification tests.
Fujitsu will concentrate on such IT services as operational systems for businesses and cloud technology. The company plans to use its system architecture expertise to develop a self-managing network system catering to the user's needs.
Fujitsu's network communications unit is expected to log sales of 255 billion yen in fiscal 2016, mainly from optical components hardware sales to major American and Japanese communications companies. But the company doesn't see big growth potential in hardware and is consequently shifting toward services centered on new technology.