Intensifying competition and falling prices in the data center and cloud markets
First written in FY2016. 5 of 13 entries say "Materialised", first in FY2021-Q1. Latest entry: FY2026-H1.
BroadBand Tower moved to the "Worse" side of this theme in 2018, 8 years before the typical company in this theme (2026).
The whole theme swung hardest in 2026: 5 of 8 companies on the "Worse" side.
0 other companies' latest entry also says "Materialised".
- FY2026-H1MaterialisedAnnual report
「Sales declined because some customers partially cancelled reserved rack space as they revised their usage plans, and the process of filling that space again remains underway.」
Regarding the previously disclosed risk that orders for and usage of the new data center could deviate from the plan, the company stated that partial cancellations of reserved racks and a decline in sales had actually occurred. - FY2022-Q3MaterialisedAnnual report
「Meanwhile, revenue from the high-margin contract operations service declined. Revenue from the First Site, which has been in operation for 20 years, also decreased as some customers switched to using the new Otemachi Site, among other factors.」
The decline in sales at Site 1 and in the high-margin outsourced operations services was also recorded in the results for the current quarter. - FY2021MaterialisedAnnual report
「Meanwhile, revenue from the high-margin investment management outsourcing service declined gradually. Revenue from the Otemachi data center (Site 1), which had been in operation for 20 years, also declined as some customers switched to the new Otemachi site, among other factors.」
The company stated that the decline in sales at Site 1 and in the high-margin outsourced operations services continued to occur in the fiscal-year results. - FY2021-Q3MaterialisedAnnual report
「Meanwhile, revenue from the high-margin investment management outsourcing service declined gradually. Revenue from the Otemachi data center (Site 1), which had been in operation for 20 years, also declined as some customers switched to the new Otemachi site, among other factors.」
The company stated that the previously disclosed risk of declining profitability at Site 1 and in the outsourced operations services had actually occurred as a decline in sales. - FY2021-Q1MaterialisedAnnual report
「Meanwhile, revenue declined at the Otemachi data center (Site 1), which had been in operation for 20 years, as some customers switched to using the new Otemachi site. Revenue from outsourced operations services also declined.」
The company stated that declines in sales at Site 1 and in sales from the outsourced operations services had actually occurred, indicating that the previously disclosed risk of declining profitability due to competition and the aging site had materialized. - FY2020WorsenedAnnual report
「For the Otemachi data center (Site 1), which has been in operation for approximately 20 years, and the outsourced operations services, we expect sales and, consequently, profit to decline. Under these circumstances, there is uncertainty as to whether we can demonstrate our competitive advantage and secure a certain market position. If competition intensifies further and, due to the impact of competitors or other factors, we are forced to reduce service prices or take similar measures, if changes to customer contract terms have an impact, or if orders or the operating status of the new data center deviate substantially from the plan, this may affect our business performance.」
In addition to the previously disclosed risks of intensifying competition and falling prices, the company explicitly identified expected declines in sales and profit from Site 1, which has been operated for approximately 20 years, and the high-margin outsourced operations services, as well as the impact of reviewing contract terms. - FY2018RestatedAnnual report
「If competition intensifies further and we are affected by competitors, creating a situation in which we are forced to reduce our service prices, or if orders for the new data center deviate substantially from the plan, this may affect our business performance.」
In addition to price competition and service price reductions, the company continues to disclose the risk that orders for the new data center may deviate from the plan. - FY2018WorsenedAnnual report
「If competition intensifies further and we are affected by competitors, creating a situation in which we are forced to reduce our service prices, or if the operating status of the new data center deviates substantially from the plan, this may affect our business performance.」
In addition to the previously disclosed risks of intensifying competition and falling prices, the company explicitly identified the potential impact on business performance if the operating status of the new data center deviates substantially from the plan. - FY2017RestatedAnnual report
「As the market may change dramatically, including through a shift in the business model involving the development of new markets through alliances with customers and the expansion of services offered and customer segments, we recognize that the competitive environment remains extremely challenging.」
While recognizing the growth potential of the data center and cloud markets, the company continues to disclose the risk that intensifying competition and service price reductions may affect business performance. - FY2017-Q1RestatedAnnual report
「Although cloud-related businesses and businesses related to IoT, artificial intelligence and big data are expanding, competition among information services companies is intensifying, and the business environment remains challenging.」
While recognizing the expansion of related markets, the company continues to assess that competition among information services companies is intensifying and that the challenging business environment persists. - FY2016-Q4RestatedAnnual report
「Although the information services industry to which our group belongs is showing an upward trend, with the expansion of the cloud services market and progress in businesses related to IoT, artificial intelligence, and big data, competition within the information services industry is intensifying, and the business environment remains challenging.」
While recognizing market expansion, the company continues to assess competition among information services companies as intense and the business environment as challenging. - FY2016-Q3WorsenedAnnual report
「Although the trend is positive, with the expansion of the cloud services market and progress in businesses related to IoT, artificial intelligence and big data, competition among information services companies is intensifying, and the business environment remains challenging.」
The company noted the market expansion while stating that competition among information services companies is intensifying, reinforcing its assessment of the challenging competitive environment. - FY2016First statedAnnual report
「As the market may change dramatically, we recognize that the competitive environment remains extremely challenging.」
The company has disclosed the potential impact of market changes, competitor trends and service price reductions on its competitive advantage and business performance as risks.