Cloud Computing

Fujitsu Invests $2 Billion to Compete in Competitive Cloud Services Market

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Japanese company Fujitsu announced on Monday that it will invest $2 billion over the next two years to increase its cloud offerings, a year after the international launch of its public cloud. The company will invest the money into innovation and to strengthen its global delivery capacity. With this expansion, Fujitsu is targeting $3.5 billion in cloud sales.

The cloud services market is expanding at an unprecedented rate. Frost and Sullivan estimates that the global cloud computing market will increase from $36 billion in 2013 to $86 billion in 2016. IaaS services are expected to increase the most.

Given the anticipated growth, investing in cloud services has been popular in the industry. Earlier this year Cisco and SAP announced investment in the billions of dollars in cloud. AWS has seen huge growth reporting 23 percent increase in sales in the first quarter.

Fujitsu’s investment may allow it to compete in the increasingly competitive cloud services market that includes several strong players such as Microsoft, Google and AWS. A study released in May showed that partners using Microsoft cloud services beat peers in revenue and growth. Clearly Fujitsu needs a focused strategy to compete with the well-established cloud companies.

“Fujitsu has established itself in the global cloud computing market with its diverse portfolio and attractive cloud offerings, in spite of the high competition,” Alexander Michael, Director of Consulting, ICT, Frost & Sullivan said. “Fujitsu’s Cloud Initiative is redefining the cloud landscape – it allows for management of cloud and non-cloud services and is available on-premise or on the cloud.”

Fujitsu’s hybrid cloud focuses on ease of use. Earlier this month it announced the acquisition of Panasonic Information Technology Solutions to help provide operation, maintenance and development of ICT systems. This acquisition may have been in anticipation of expanding its cloud services. In 2013 Fujitsu purchased runmyprocess to add a cloud integration platform to its offerings.

Capitalizing on the anticipated growth of IaaS are two products, Trusted Public S5 and Private Hosted. The first is globally available from seven data centers and will increase in capacity by 77 percent with more data centers in the UK and US. The new data centers will help Fujitsu deliver trusted public cloud in line with data residency requirements. Private Hosted is expanding data centers in Australia, China and Finland. Private Hosted is planned for two new locations in the US and six in Europe and Asia.

”Fujitsu has a vision of a Human Centric Intelligent Society, one where social and business innovation is driven by the intelligent use of information and communication technologies,” Cameron McNaught, Executive Vice President, Solutions, Global Delivery, Fujitsu said. “We see cloud as the natural platform for delivering these new types of applications, which is reflected in both the increase we are seeing in cloud adoption and how it is becoming a standard part of IT service delivery models for many CIOs today.”

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