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IT trends in Japan for 2017 -IT Spending and Key Technology Trends- ITR Corporation www.itr.co.jp

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Page 1: IT trends in Japan for 2017 - LIAA · IT trends in Japan for 2017 -IT Spending and Key Technology Trends- ITR Corporation  . About us. ... BRMS market survey (SI

IT trends in Japan for 2017

-IT Spending and Key Technology Trends-

ITR Corporation

www.itr.co.jp

Page 2: IT trends in Japan for 2017 - LIAA · IT trends in Japan for 2017 -IT Spending and Key Technology Trends- ITR Corporation  . About us. ... BRMS market survey (SI

About us. ITR is an independent IT research and consulting firm. We provide hands-on

advice about technology market, partner evaluations and technology

deployment to drive your business.

© 2017, ITR Corporation All rights reserved. 1

IT &Business Strategy

Business

Process

Application

IT Governance IT Management

Architecture / IT Infrastructure

Analysis/ Evaluation

Planning/ Design

Development/ Deployment

IT Service Provider

Business/IT

Consulting

Firm

IT Research

Firm

Name ITR Corporation

Address Shintoshin-maruzen Bldg.3F,

Nishi-Shinjuku 3-8-3, Shinjuku-ku,

Tokyo P.C. 160-0023

URL http://www.itr.co.jp

Established March 1994

CEO Satoshi Uchiyama

Business

Domain

・Research & advisory service

・Consulting service

Survey on ICT industry

Consulting on technology market

・ Publishing

・ Event/Seminar

・ Training and education

Corporate overview

Our Team 14 Analysts of IT and Telecom

Industry.

3 market researchers.

Page 3: IT trends in Japan for 2017 - LIAA · IT trends in Japan for 2017 -IT Spending and Key Technology Trends- ITR Corporation  . About us. ... BRMS market survey (SI

SMB survey(HW)

Server support program satisfaction survey (HW vendor)

Online storage user survey (System Integrator)

Credit card aggregator IT survey (SI)

System monitoring service survey (SI)

Sales planning for securities industry(HW vendor)

Financial package survey (SI)

System user satisfaction survey (Public Organization)

User survey (BI vendor)

Business platform service-concept design(SI)

Business Platform service-sales planning (SI)

System operation business planning(SI)

Solution planning for DC business providers(SI)

NW virtualization sales plan (SI)

User company inquiry

Competitor analysis

UNIX server survey (HW vendor)

Server support service survey (HW vendor)

West Tokyo district data center survey (SI)

NW virtualization survey (SI)

Talent management solution survey (TMS vendor)

LMS market survey (LMS vendor)

BRMS market survey (SI)

Sales planning

FinTech training(SI)

IoT training (Telecom)

IT consultant training (SI)

Management training (Securities)

Sales training

Recent survey and consulting projects.

2 © 2017, ITR Corporation All rights reserved.

Cloud user group interview (SI)

EDI tool group interview (EDI vendor)

SOA tool group interview (SI)

NGN appliance group interview (SI)

Tier2 SI partner group interview (SI)

Group interview

Mid range ERP Whitepaper (ERP vendor)

Manufacturing package Whitepaper (SI)

Cloud ERP Whitepaper (ERP vendor)

Self service BI Whitepaper (BI vendor)

DaaS Whitepaper (SI)

VDI Whitepaper (SI)

Operation automation Whitepaper (Tool vendor)

Owned media contents curation (SI)

Owned media contents editing & writing (BI)

Whitepaper and promotion support

Page 4: IT trends in Japan for 2017 - LIAA · IT trends in Japan for 2017 -IT Spending and Key Technology Trends- ITR Corporation  . About us. ... BRMS market survey (SI

1. Japanese IT market

World’s 3rd IT market at steady growth.

Top companies and major IT vendors

Well organized sales channels

Major resellers and distributors

Market prices

IT events and trade shows in Tokyo

Page 5: IT trends in Japan for 2017 - LIAA · IT trends in Japan for 2017 -IT Spending and Key Technology Trends- ITR Corporation  . About us. ... BRMS market survey (SI

World’s 3rd IT market at steady growth.

4 Source:MIC “Study on Economic analysis of ICT 2015"

(Unit=billion JPY)

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

16.6 trillion JPY

Private sector IT investment reached 16.6 trillion JPY in 2014.

Software ( 8.1 trillion JPY )

Computers and peripheral equipment ( 5.3 trillion JPY )

Communications equipment ( 3.1 trillion JPY )

Page 6: IT trends in Japan for 2017 - LIAA · IT trends in Japan for 2017 -IT Spending and Key Technology Trends- ITR Corporation  . About us. ... BRMS market survey (SI

Ranking Revenue

(Billiom JPY)

1 Toyota Motor 28,403

2 Honda Motor 14,601

3 Japan Post Holdings 14,257

4 Nissan Motor 12,189

5 Nippon Telegraph&Tel 11,540

6 Hitachi 10,034

7 Softbank 9,153

8 JX Holdings 8,737

9 Aeon 8,176

10 Toyota Tsusho 8,170

11 Sony 8,105

12 Panasonic 7,553

13 Marubeni 7,300

14 Mitsubishi Corp 6,925

15 Tokyo Electric Power 6,069

Company

1 Fujitsu* 3,283

2 NEC* 2,630

3 Hitachi* 2,109

4 NTT Data 1,615

5 IBM Japan 902

6 Canon MJ 646

7 Otsuka Shokai 609

8 NRI 421

9

CTC 391 10

11 TIS Intec Group 382

12 HP+Hewlett Packard Japan 364

13 SCSK 324

14 278

15 Trans Cosmos 224

Ranking Revenue

(Billiom JPY) Company

Nihon Unisys

Top companies and major IT vendors.

5 © 2017, ITR Corporation All rights reserved. * Revenue of ICT segments.

Microsoft Japan 403

Page 7: IT trends in Japan for 2017 - LIAA · IT trends in Japan for 2017 -IT Spending and Key Technology Trends- ITR Corporation  . About us. ... BRMS market survey (SI

User Company

IT Service

for ERP, web

marketing

• Consulting

• SaaS/ASP

• DC//IaaS

• Outsourcing

• Call center

• Help desk

• System

operation,

surveillance

NW Carrier

for MDM,

SaaS

• Fixed

• Mobile

• MVNO

• Cloud/IaaS

Communication

equipment

for security and

appliance

• Router

• Switch

• LAN/WAN

• Wifi

• Web/TV MTG

• Smartphone

• Feature phone

• IP phone

• PBX

HW vendor

for

virtualization

• Server

• Converged

infrastructure

• Storage

• Tape

• Mainframe

• HPC

• Cloud

Application

Vendor

for ISV

• OS

• ERP

• CRM

• SCM

• BI

• DBMS • Security

• Auth/ID • Data

integration

Network Integrator

Reseller

System Integrator

OA

for ECM,

Medical

• Printer

• Copy

• Scanner

• Fax

• All-in-one

Regional sales

PC vendor

for school, local

government

• Desktop PC

• Laptop PC

• Thin client

• Tablet

• Phablet

Distributor

Well organized sales channels.

Page 8: IT trends in Japan for 2017 - LIAA · IT trends in Japan for 2017 -IT Spending and Key Technology Trends- ITR Corporation  . About us. ... BRMS market survey (SI

IT Service NW Carrier Communication

equipment HW vendor Application

Vendor

Cisco Partners

IBM Partners

SAP Partners

OA

Regional sales

PC vendor

Microsoft

Partners

HP Partners

Oracle

Partners

Electronics

Retailers

Major resellers and distributors.

Page 9: IT trends in Japan for 2017 - LIAA · IT trends in Japan for 2017 -IT Spending and Key Technology Trends- ITR Corporation  . About us. ... BRMS market survey (SI

© 2017, ITR Corporation All rights reserved. 8

Unit=1000JPY/month

Market prices.

Tier3(n=223) Tier2(n=198) Tier1(n=282)

Total

HW

Resell User

Inde-

pendent Ave

HW

Resell User

Inde-

pendent Ave

HW

Resell User

Inde-

pendent Ave

Consultant 1,367 0 1,221 1,250 1,362 1,504 1,560 1,477 1,891 1,800 1,952 1,907 1,673

Project

Manager 1,194 1,250 1,006 1,071 1,600 1,467 1,290 1,436 1,475 1,420 1,612 1,501 1,407

Senior SE 1,250 1,078 870 903 1,282 1,135 1,082 1,154 1,263 1,186 1,186 1,231 1,142

Middle SE 810 696 782 771 873 876 899 886 969 912 966 958 889

Entry SE 708 603 645 646 792 683 747 737 777 775 801 784 730

Programmer 645 460 615 607 696 576 683 659 731 691 715 720 667

Help Desk 500 383 520 495 494 475 582 520 590 565 600 588 540

System

Operator 500 390 421 423 460 522 618 536 496 637 609 539 502

Company sizes are based on annual revenue; “Tier3”<5 billion JPY, “Tier2” 5-10 billion JPY, “Tier1” <10 billion JPY

Average system engineer fees in the Japanese market (2016)

Source:ITR , 2016

Average SaaS pricing in the Japanese market (2016)

Application Tools Pricing

Collaboration e-mail, schedule, online storage 1user 500JPY/month

HR HR, Payroll 1user 1,000JPY/month

Time and Workforce Management 1user 400JPY/month

Financial Financial management, Planning 1user 10,000JPY/month

Page 10: IT trends in Japan for 2017 - LIAA · IT trends in Japan for 2017 -IT Spending and Key Technology Trends- ITR Corporation  . About us. ... BRMS market survey (SI

Japan IT Week

by Reed Exhibitions Japan

http://www.japan-it.jp/en/

Watson Summit (XCITE)

by IBM Japan

http://ibmevent.jp/watsonsummit20

16/

Developers Summit

by Shoeisha

http://event.shoeisha.jp/devsumi/2

0170216/

ITpro EXPO

by Nikkei BP

http://expo.nikkeibp.co.jp/itpexpo/2

016/english/

AWS Summit Tokyo

by Amazon Web Service

http://www.awssummit.tokyo

Gartner Symposium

by Gartner Japan

http://www.gartner.com/events/apa

c/japan-symposium

Directions

by IDC Japan

http://www.idcjapan.co.jp/Seminar/

directions2016/

IT events and trade shows in Tokyo.

© 2017, ITR Corporation All rights reserved. 9

Interop Tokyo

by NANO OPT media

https://www.interop.jp/2017/exhibit

or/info.html

CEATEC Japan

by CIAJ, JEITA, CSAJ

http://www.ceatec.com/2017/en/

Page 11: IT trends in Japan for 2017 - LIAA · IT trends in Japan for 2017 -IT Spending and Key Technology Trends- ITR Corporation  . About us. ... BRMS market survey (SI

2. IT spending

IT Investment Index(FY2001-FY2017)

IT budget as % of revenue (FY2016, by Industry)

IT budget allocation (FY2016, by industry)

IT budget as % of revenue (FY2016, by organization size)

IT budget allocation (FY2016, by organization size)

Page 12: IT trends in Japan for 2017 - LIAA · IT trends in Japan for 2017 -IT Spending and Key Technology Trends- ITR Corporation  . About us. ... BRMS market survey (SI

3.61

2.45

1.95

2.90

2.51

3.88

2.75 1.87

-3.80

0.04

0.600.70

2.10

1.46

1.51

2.10

2.60

2.20

2.74

3.53

2.93

3.923.68

1.31

-0.98

1.44 0.83

0.43

1.69

0.97

1.421.73

-5

-4

-3

-2

-1

0

1

2

3

4

5

実績値

予想値

IT Investment Index*(FY2001-FY2017)

• The chart shows the secular changes of ”IT investment index” in the last 16 years.

• The index count answers of IT investment forecast like "Increased<20%" = +10 points

"Same" = ±0 point "Decreased >20%" = -20 points. And divide the sum of all the

answers by the respondent number.

• The index is fit for volatile market measurement just like diffusion index.

© 2017, ITR Corporation All rights reserved. 11 Source:ITR "IT Budget & Spending Trends 2017"

Actual

Forecast

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

(Forecast) (n=2,685)

Page 13: IT trends in Japan for 2017 - LIAA · IT trends in Japan for 2017 -IT Spending and Key Technology Trends- ITR Corporation  . About us. ... BRMS market survey (SI

IT budget as % of revenue (FY2016, by Industry)

• Average IT Budget against corporate revenue accounts for 2.6%.

• Industry based scores are as below.

© 2017, ITR Corporation All rights reserved. 12 Source:ITR "IT Budget & Spending Trends 2017"

2.6%

1.8%

1.5%

1.5%

6.1%

3.8%

2.3%

2.9%

Total (N=2,408)

Manufacturing (N=620)

Construction & Housing (N=249)

Wholesale & Retail (N=344)

Financial Services (N=235)

Communications & IT (N=293)

Services (N=475)

Public Sector (N=192)

(n=2,408/NPO sectors excluded)

Page 14: IT trends in Japan for 2017 - LIAA · IT trends in Japan for 2017 -IT Spending and Key Technology Trends- ITR Corporation  . About us. ... BRMS market survey (SI

IT budget allocation (FY2016, by industry)

© 2017, ITR Corporation All rights reserved. 13 Source:ITR "IT Budget & Spending Trends 2017"

Total (N=2,685)

Manufacturing (N=667)

Construction & Housing (N=271)

Wholesale & Retail (N=374)

Financial Services (N=251)

Communications & IT (N=381)

Services (N=520)

Public Sector (N=221)

Less than 10 million JPY 10-99 million JPY 100-999 million JPY 1-10 billion JPY More than 10 billion JPY

29.1%

24.9%

39.9%

36.6%

8.0%

20.7%

41.5%

24.4%

23.0%

22.6%

22.5%

23.8%

12.7%

22.3%

26.7%

27.1%

24.8%

25.5%

25.1%

21.9%

27.9%

28.3%

19.8%

29.0%

14.6%

18.4%

8.1%

12.3%

25.9%

17.3%

8.5%

12.2%

8.6%

8.5%

4.4%

5.3%

25.5%

11.3%

3.5%

7.2%

0% 25% 50% 75% 100%

全体(N=2685)

製造(N=667)

建設・不動産(N=271)

卸売・小売(N=374)

金融・保険(N=251)

情報通信(N=381)

サービス(N=520)

公共(N=221)

1,000万円未満 1,000万~1億円未満 1億~10億円未満 10億~100億円未満 100億円以上

Page 15: IT trends in Japan for 2017 - LIAA · IT trends in Japan for 2017 -IT Spending and Key Technology Trends- ITR Corporation  . About us. ... BRMS market survey (SI

IT budget as % of revenue (FY2016, by organization size)

© 2017, ITR Corporation All rights reserved. 14 Source:ITR "IT Budget & Spending Trends 2017"

4.7%

2.4%

2.0%

2.2%

2.0%

3.3%

2.6%

10億円未満(N=201)

10億~100億円未満(N=752)

100億~500億円未満(N=584)

500億~1,000億円未満(N=242)

1,000億~5,000億円未満(N=297)

5,000億円以上(N=332)

全体平均(N=2408)Total (N=2,408)

More than 500 billion JPY(N=332)

100-499 billion JPY (N=297)

50-99 billion JPY (N=242)

10-49 billion JPY(N=584)

1-9 billion JPY (N=752)

Less than 1 billion JPY (N=201)

• Organization size based scores are as below.

(n=2,408/NPO sectors excluded)

Page 16: IT trends in Japan for 2017 - LIAA · IT trends in Japan for 2017 -IT Spending and Key Technology Trends- ITR Corporation  . About us. ... BRMS market survey (SI

IT budget allocation (FY2016, by organization size)

© 2017, ITR Corporation All rights reserved. 15 Source:ITR "IT Budget & Spending Trends 2017"

Total (N=2,685)

More than 500 billion JPY(N=373)

100-499 billion JPY (N=321)

50-99 billion JPY (N=264)

10-49 billion JPY(N=624)

1-9 billion JPY (N=813)

Less than 1 billion JPY (N=290)

Less than 10 million JPY 10-99 million JPY 100-999 million JPY 1-10 billion JPY More than 10 billion JPY

Page 17: IT trends in Japan for 2017 - LIAA · IT trends in Japan for 2017 -IT Spending and Key Technology Trends- ITR Corporation  . About us. ... BRMS market survey (SI

3. Key topics

Key topics (FY2016 → FY2017)

Major Technology trends and rate of progression

Share of risk related expenditure against all IT Budget

IT Unit control over organization IT spending

Global IT budget allocation

Page 18: IT trends in Japan for 2017 - LIAA · IT trends in Japan for 2017 -IT Spending and Key Technology Trends- ITR Corporation  . About us. ... BRMS market survey (SI

Key topics (FY2016 → FY2017) • In addition to “Cyber attack protection”, “Business innovation” and “Work style

innovation” raised the rank.

• No changes in the Top6 topics.

17

FY2016 FY2017

1 Contribution to Top-line growth 1 Contribution to Top-line growth

2 Operation cost reduction 2 Operation cost reduction

3 Improvement of customer service quality 3 Improvement of customer service quality

4 IT cost reduction 4 IT cost reduction

5 Improvement of system performance and

reliability 5

Improvement of system performance and

reliability

6 Data integration of legacy systems 6 Data integration of legacy systems

7 Protection of confidential data and personal

information 7 Strategic data utilization

8 Strategic data utilization 8 Cyber attack protection

9 Cyber attack protection 9 Protection of confidential data and personal

information

10 BCP & DR 10 Business innovation

11 Business innovation 11 BCP & DR

12 Speed-up of management decision makings 12 Work style innovation

13 Global business support 13 Speed-up of management decision makings

14 Work style innovation 14 Global business support

15 R&D of cutting-edge technologies 15 Support for Internal control and compliance

16 Support for Internal control and compliance 16 R&D of cutting-edge technologies

17 HR development & training of IT staff 17 HR development & training of IT staff

18 Restructuring of IT organization/subsidiary 18 Restructuring of IT organization/subsidiary

Source:ITR "IT Budget & Spending Trends 2017"

:Up :Down :Same

© 2017, ITR Corporation All rights reserved.

Page 19: IT trends in Japan for 2017 - LIAA · IT trends in Japan for 2017 -IT Spending and Key Technology Trends- ITR Corporation  . About us. ... BRMS market survey (SI

Major Technology trends and rate of progression.

• Top trend was “Integration and restructuring of IT Platform” (7 years in a row).

• “Introduction of My number (national ID) system” lowered the priority from the 3rd to

7th position.

• Cloud related topics stay at high positions.

© 2017, ITR Corporation All rights reserved. 18 Source:ITR "IT Budget & Spending Trends 2017"

3.4

3.2

2.9 2.8 2.8 2.8 2.7 2.7 2.7

2.6 2.6 2.6 2.6 2.6 2.5 2.5 2.4 2.4 2.3 2.3 34.0%

22.6% 21.7%

17.9% 22.2% 21.1%

38.3%

16.4% 16.9%

24.4% 19.3%

15.3%

24.5%

11.2% 13.1% 16.9%

12.5% 12.8% 12.6% 9.5%

74.6%

65.2% 63.0%

57.4% 59.0%

57.3%

70.0%

53.4%

53.9% 55.0% 55.9%

51.3% 54.3%

47.6% 46.9% 47.9% 46.2% 45.1%

41.8% 41.0%

0%

20%

40%

60%

80%

1.0

2.0

3.0

4.0

Strategic weight

FY2016 Actual

FY2019 Forecast

(Rate of progression) (Strategic weight)

Page 20: IT trends in Japan for 2017 - LIAA · IT trends in Japan for 2017 -IT Spending and Key Technology Trends- ITR Corporation  . About us. ... BRMS market survey (SI

Share of risk related expenditure against all IT Budget.

• All risk related expenditures exceeded FY2015 budget.

• “Information Security” and “Disaster Recovery “ recorded the highest in this

survey.

© 2017, ITR Corporation All rights reserved. 19 Source:ITR "IT Budget & Spending Trends 2017"

11.3%

10.3%

16.4%

11.2%

9.6%

15.3%

9.3%

8.7%

13.5%

8.7%

7.9%

11.5%

9.2%

7.3%

12.9%

J-Sox / Internal Control

Disaster recovery

Information Security

FY2012

FY2013

FY2014

FY2015

FY2016

Page 21: IT trends in Japan for 2017 - LIAA · IT trends in Japan for 2017 -IT Spending and Key Technology Trends- ITR Corporation  . About us. ... BRMS market survey (SI

IT Unit control over organization IT spending.

• IT Unit control over organization IT spending bounced back in FY2016.

• In 2016, IT Unit controls less than 50% of total IT spending.

© 2017, ITR Corporation All rights reserved. 20 Source:ITR "IT Budget & Spending Trends 2017"

% of IT unit control

over total IT budget

Average

2.7%

3.2%

2.9%

4.6%

12.5%

14.9%

12.4%

9.7%

21.1%

22.5%

17.7%

15.0%

17.4%

14.3%

15.8%

13.3%

20.5%

19.8%

21.6%

21.1%

14.7%

14.0%

15.4%

17.8%

11.1%

11.3%

14.2%

18.5%

0% 25% 50% 75% 100%

FY2016 (N=2,657)

FY2015 (N=2,429)

FY2014 (N=1,095)

FY2013 (N=953)

0% 10%< 10-24% 50-74% 75-99% 100% 25-49%

52.7%

47.9%

42.7%

44.6%

FY2013 (N=953)

FY2014 (N=1,095)

FY2015 (N=2,429)

FY2016 (N=2,657)

Page 22: IT trends in Japan for 2017 - LIAA · IT trends in Japan for 2017 -IT Spending and Key Technology Trends- ITR Corporation  . About us. ... BRMS market survey (SI

Global IT budget allocation (Manufacturing/Non-manufacturing).

© 2017, ITR Corporation All rights reserved. 21 Source:ITR "IT Budget & Spending Trends 2017"

Japan North America Europe China ASEAN Other Asia Central and South America Middle East, Africa

Manufacturing

Non-

manufacturing

FY2016 (N=223)

FY2015 (N=536)

FY2014 (N=254)

FY2013 (N=147)

FY2012 (N=91)

FY2016 (N=459)

FY2015 (N=315)

FY2014 (N=153)

FY2013 (N=64)

FY2012 (N=48)

Page 23: IT trends in Japan for 2017 - LIAA · IT trends in Japan for 2017 -IT Spending and Key Technology Trends- ITR Corporation  . About us. ... BRMS market survey (SI

4. Products and services

Most focused Technology 2017 : by Industry

IT platform and Device

OS and Middleware

Application

Security and IT Service

Top 4 categories

Page 24: IT trends in Japan for 2017 - LIAA · IT trends in Japan for 2017 -IT Spending and Key Technology Trends- ITR Corporation  . About us. ... BRMS market survey (SI

Most focused Technology 2017 : by Industry

Most focused IT product / service areas differ in each industry.

© 2017, ITR Corporation All rights reserved. 23

Manufacturing • IoT / M2M

Construction &

Housing • NW Virtualization / SDN

• Integrated Systems

Wholesale &

Retail • Server Virtualization

Financial

Services • Private Cloud

• IaaS

Communicatio

ns & IT • IoT / M2M

Services • NW Virtualization / SDN

• Server Virtualization

Public Sector • LTE / 4G

• Storage Virtualization

• AI / Machine learning

• IT Service Management

• Mobile OS(Windows)

• AI / Machine learning

• Enterprise Mobile

Management

• AI / Machine learning

• Mobile OS(Windows)

• NoSQL

• BI / Data Analysis

• Enterprise Management

• SCM

• ECM

• Unified Communication

• Mobile Apps for Smart

Device

• BI / Data Analysis

• Mobile Apps for Smart

Device

• File Sharing/File Transfer

• Vulnerability Scanner

• Miss sending

Prevention

• Network Quarantine

• Network Quarantine

• Biometric

Authentication

• Network Quarantine

• DLP

• IRM

IT platform & Device OS & Middleware Application Security & IT Service

Source:ITR "IT Budget & Spending Trends 2017"

Page 25: IT trends in Japan for 2017 - LIAA · IT trends in Japan for 2017 -IT Spending and Key Technology Trends- ITR Corporation  . About us. ... BRMS market survey (SI

Most focused Technology 2017 : IT platform and Device

• “IoT” jumps up to the most focused technology in FY2017. “Tablet” and

“Smartphone” keep high growth.

• Cloud related investment (IaaS/ PaaS/SaaS/ DaaS/Private ) are in growth trends.

© 2017, ITR Corporation All rights reserved. 24 Source:ITR "IT Budget & Spending Trends 2017"

LAN WAN

Remote Access

Wi-Fi NW Virtualization / SDN

VoIP / SIP

MVNO

High-End Server / Mainframe

Midrange Server / Blade Server

PC Server

Integrated Systems

Hyper-Converged Infrastructure

Server Virtualization

Storage(Additional Disc / DAS)

Storage(NAS・SAN)

Storage Virtualization PC

Client Virtualization / Thin Client

Smartphone Tablet

Wearable Device

IoT / M2M

3D Printer

Data Center

SaaS

PaaS IaaS

DaaS

BaaS

DBaaS

Private Cloud

Hybrid Cloud

-4.0

-2.0

0.0

2.0

4.0

6.0

+8.0

4.0% 8.0% 12.0%

Investment Index

% of “Budget for FY2017” respondents

LTE/4G

Page 26: IT trends in Japan for 2017 - LIAA · IT trends in Japan for 2017 -IT Spending and Key Technology Trends- ITR Corporation  . About us. ... BRMS market survey (SI

Most focused Technology 2017 : OS and Middleware

• Sign of revitalization in the middleware market.

• “AI / Machine Learning” is listed in the technology-to-invest position by Japanese

companies.

© 2017, ITR Corporation All rights reserved. 25 Source:ITR "IT Budget & Spending Trends 2017"

Client OS(Windows)

Client OS(non-Windows)

Server OS (Windows)

Server OS(Linux)

Server OS(UNIX)

Proprietary OS(Mainframe OS)

Mobile OS(iOS)

Mobile OS(Android)

Mobile OS(Windows)

Application Server API Management Tool

SOA

BPM

BRMS

Application Development Support Tool

DevOps / CI / CD

Test Tool

RDBMS

NoSQL

Hadoop / Spark

Data Integration

Data Search

AI / Machine Learning

RPA

Operation Management Tool

Runbook & Process Automation

IT Service Management

Software Asset Management

MDM/EMM

-4.0

-2.0

0.0

2.0

4.0

6.0

+8.0

4.0% 8.0% 12.0%

Investment Index

% of “Budget for FY2017” respondents

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Most focused Technology 2017 : Application

• “Marketing Automation” scored the highest investment index in apps category.

• The number of organizations to invest in “BI / Data Analysis” keeps on growing.

Strong needs for analytic platform to analyze miscellaneous data.a

© 2017, ITR Corporation All rights reserved. 26 Source:ITR "IT Budget & Spending Trends 2017"

Proprietary Application

(In-house) Proprietary Application

(Outsource)

ERP

SFA/CRM

SCM

PDM/PLM

Sales Management

Financial Accounting HR/Payroll

Manufacturing Procurement

Enterprise Management

Marketing Automation

DMP BI/Data Analysis

EC

Self-Service/Workflow

Groupware/Collaboration

Chat / IM

Video/Web conferencing

Unified Communication

ECM

WCM

EIP

File Sharing/File Transfer

Enterprise Social Network

Office suite

Mobile Apps for Smart Device

-4.0

-2.0

0.0

2.0

4.0

6.0

+8.0

4.0% 8.0% 12.0%

Investment Index

% of “Budget for FY2017” respondents

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Most focused Technology 2017 : Security and IT Service

• “Targeted Attack Protection” and “SOC/Managed Security Service” expect

continuous investment in the Japanese market.

• “Vulnerability Scanner ” draws attention of IT security managers.

© 2017, ITR Corporation All rights reserved. 27 Source:ITR "IT Budget & Spending Trends 2017"

Antivirus

Firewall / UTM

IDS / IPS

Targeted Attack Protection

Anti-Spam/ Phishing Protection

Miss sending Prevention

Biometric Authentication

SSO

IRM

DLP

Digital Signature/Timestamp

Digital Forensics

Network Quarantine

SOC/Managed Security Service

Vulnerability Scanner

Consulting Service IT Outsourcing

Offshore Outsourcing

BPO

-4.0

-2.0

0.0

2.0

4.0

6.0

+8.0

4.0% 8.0% 12.0%

Investment Index

% of “Budget for FY2017” respondents

Log Management/SIEM

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Marketing Automation

Application Development Support Tool

AI / Machine Learning

IoT / M2M

-4.0

-2.0

0.0

2.0

4.0

6.0

+8.0

Investment Index

4.0% 8.0% 12.0% % of “Budget for FY2017” respondents

Most focused Technology 2016 → 2017 : Top 4 categories

© 2017, ITR Corporation All rights reserved. 28 Source:ITR "IT Budget & Spending Trends 2017"

• In FY 2016, adoption of new technologies accelerated in censor and marketing

related products.

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5. Technologies at a glance

IoT

AI

Marketing Automation

Cloud

Cyber Security

Japanese IT startups- Service platforms

Japanese IT startups- New UI, New UX

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IoT – User survey result

© 2017, ITR Corporation All rights reserved. 30 Source:ITR “User View: IoT 2015"

Areas of IoT deployment

16%

13%

8%

12%

17%

14%

27%

27%

32%

34%

0% 25% 50% 75% 100%

2014 Survey

(N=220)

Deployed and will expand Deployed but will not expand

Planned to deploy within 1 year Planned to deploy

Have no plans

2015 Survey

(N=218)

State of IoT deployments

41%

26%

23%

22%

22%

13%

10%

7%

3%

39%

27%

24%

20%

21%

14%

8%

8%

8%

0% 20% 40% 60%

Security

Remote Monitoring

Sensing

Track and Trace

Payment / POS

Smart Meter

Wearable Device

Telematics

Other 2014 Survey (N=220)

2015 Survey (N=218)

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AI – User survey result

© 2017, ITR Corporation All rights reserved. 31 Source:ITR “User View: AI 2016"

38.6%

28.6%

22.9%

20.0%

20.0%

17.1%

17.1%

15.7%

15.7%

12.9%

10.0%

10.0%

10.0%

10.0%

8.6%

8.6%

7.1%

7.1%

4.3%

43.8%

20.3%

24.6%

18.8%

17.4%

26.4%

16.7%

28.3%

30.1%

22.8%

23.6%

11.6%

14.5%

18.8%

15.2%

17.4%

12.7%

19.2%

0.4%

0% 10% 20% 30% 40% 50%

Data analysis

R&D

Customer support

Test/Product design

Merchandising

Marketing

Manufacturing

Quality Control

CRM

WCM

HRM

Enterprise Management

IT Security

Order management

GRC

Procurement

SCM

Miscellaneous

Total (N=276)

Infrastructure management

Testing or deployed (N=70)

Areas of AI deployment State of AI deployments

Have no plans

Investigating

Estimating effectiveness

Assigned dedicated staff for testing

Testing for specific problems

Pilot project

Deployed partly

Deployed and utilized

Other

10.1%

37.0%

17.8%

9.4%

9.4%

10.9%

2.9%

2.2%0.4%

( N=276)

具体的な取り組みは実施していない

情報収集をしている

有効性に対する調査を実施している

担当者を充てて、 調査を実施ている

特定の課題に対して、 有効性に対する具体的な調査を実施している

実験的なプロジェ クト を実施して、 有効性を検証している

補完的ではあるが既に一部の業務に適用している

既に業務に導入し、 日々利用している

その他

Testing or deployed

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Marketing Automation

• B2C market grows at CAGR19.6%. Top3: Shanon, Marketo, Oracle

• B2B market grows at CAGR28.3%. Top3: SFDC, SAS, From Scratch

32 Source:ITR “Market View: Marketing Automation 2017"

2014 2015 2016 2017 2018 2019 2020

(Unit=billion JPY) Japanese Marketing Automation market forecasts.

1.7 2.6 3.9

4.8 5.5 6.0 6.4 2.6

4.1

6.8

9.2

11.1

12.8

14.2

0

2

4

6

8

10

12

14

16

18

20

22

B2C

B2B

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Cloud (IaaS/PaaS/SaaS)

• IaaS/PaaS market grows at CAGR19.2%. Top3:AWS, NTTCom, Fujitsu.

• SaaS market grows at CAGR12.5%. Top3: SFDC, Softbank, Experian.

• DaaS market t grows at CAGR15.9%. Tops3: Fujitsu, NTT Data, NSSOL.

© 2017, ITR Corporation All rights reserved. 33 Source:ITR “Market View: Cloud Computing 2016"

111 135

168

205

246

287

325

0

50

100

150

200

250

300

350

2013 2014 2015 2016 2017 2018 2019

(Unit=billion JPY)

8.8 9.9 10.7 11.5 12.2 13.0 13.7

7.3 8.0 8.6 9.2 9.7 10.3

1.4 2.0

2.4 2.8

3.1 3.4 3.6

5.0 8.0

8.2 8.6

9.1 9.5 9.9

8.9 9.5

10.2 10.8

11.4 11.9

12.2

1.9

2.3

2.8

3.3 3.8

4.2 4.5

1.8

3.7 4.8

5.7 6.5

1.5

1.9

4.0

6.7

9.7

12.7

16.0

19.3

23.2

0

20

40

60

80

100

120

2013 2014 2015 2016 207 2018 2019

(Unit=billion JPY)

6.3

Japanese IaaS & PaaS market forecasts. Japanese enterprise SaaS market forecasts.

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Cyber Security

• Cyber Security market grows at CAGR11.4%.

• Sandbox-based Gateway Security(22.7%) and DDoS Protection (22.4%)grows fastest.

© 2017, ITR Corporation All rights reserved. 34 Source:ITR “Market View: Cyber Security 2016"

27.0 33.2

38.1 42.5

47.0 51.0

55.0 7.1

6.8

6.9 7.0

7.1 7.3

7.4

2.7

3.4

4.2

5.0

5.7 6.2

6.7

5.1

5.5

5.8

6.1

6.3

6.5

6.7

9.2

9.8

10.7

11.5

12.3

13.0

13.7

3.9

72

10.0

12.5

15.2

17.8

20.0

1.9

2.7

3.9

5.0

6.0

6.8

7.5

1.0

1.2

1.4

1.6

1.8

2.0

2.2

0.9

1.1

1.3

1.6

1.9

2.1

2.4

0

20

40

60

80

100

120

140

2014 2015 2016 2017 2018 2019 2020

(Unit=billion JPY)

Vulnerability Scanner

Web Tamper Protection Alert

DDoS Protection

Sandbox-based Gateway Security

Web Gateway Security

URL Filtering

WAF

Firewall / UTM

IDS / IPS

Japanese Cyber Security market forecasts.

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Japanese IT startups- Service platforms

AirCloset, Inc.

http://corp.air-closet.com/

SORACOM, Inc.

https://soracom.jp/

“airCloset” is a fashion rental platform

started in December 2014. The service

had grown up to 200 brands and 75,000

users in 15 months. Funded 1 billion JPY

from laundry shop FC, warehouse

company and credit card VC in 2016.

“Soracom” is an AWS based IoT platform

started in September 2015. The service

(SIM card and APIs dashboard) has signed

over 2,000 companies and raised 2.4

billion JPY for US (World Innovation Lab,

Infinity Venture Partners) and more for

ASEAN (Mitsui Corp, Pavilion Capital).

© 2017, ITR Corporation All rights reserved. 35

Money Forward, Inc.

https://moneyforward.com/

“Money Forward” is a personal money

account aggregation platform started in

December 2012. It connects bank account,

credit card account and shopping receipt

scan data via API links. Now it has 3.5

million users and OEM the service platform

for various banks.

Page 37: IT trends in Japan for 2017 - LIAA · IT trends in Japan for 2017 -IT Spending and Key Technology Trends- ITR Corporation  . About us. ... BRMS market survey (SI

Japanese IT startups- New UI, New UX

CEREVO, Inc.

https://www.cerevo.com

Seiko Epson, Inc.

www.epson.com/moverio/

WHILL, Inc.

http://whill.us/

“Live shell” is an online streaming

appliance released in 2012. The mix-up

of consumer electronics(embedded

system) and online service enables

gradual UI and service improvement. The

product of 11 employee company is sold

in 21countries.

“Moverio” is a see through type smart

glasses released in Nov 2011. User can

download apps(entertainment, games,

business etc.) from Apps Market. It can

be used as a drone monitor, video player

and educational tool.

“WHILL Model M” is a personal mobility

released in 2014. Its powerful front omni-

wheels enables users to drive over steep

inclines, rough terrain and tight turns.

The startup of 40 employees won CES

2017 Innovation Award in “Best

Accessibility Tech” Category.

© 2017, ITR Corporation All rights reserved. 36

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Shinjuku-ku Tokyo 160-0023 Japan

Tel. +81(3)-5304-1304 Fax. +81(3)-5304-1320

mail: [email protected]

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