Expansion of the Cloud Platform Business

「当社は 2019 年から OCI を活用したシステムの設計・構築・運用支援に取り組み、2022 年には OCI 導入・運用支援サービス「U-Way」の提供を開始するなど、関連サービスを拡充してまいりました。」

「Centered on the expansion of generative-AI projects for major SIers, progress in new development projects related to a next-generation payment platform and staffing expansions backed by the trust of existing customers in the systems infrastructure field resulted in revenue and gross profit substantially exceeding the previous fiscal year, supporting higher revenue and profit for the Group.」

「The systems infrastructure business was affected by the extension of large-scale system renewal projects and project freezes at major customers. However, inquiries for the company’s original U-Way service increased, multiple new end users were acquired, and orders were won for government cloud projects from local governments. As a result, revenue from the business for the current consolidated fiscal year was ¥1,812.747 billion, up 1.9% from the previous fiscal year.」

「In the systems infrastructure business, inquiries for the U-Way Oracle Cloud VMware Solution Migration and Implementation Support Service increased, and new government cloud projects began in the second quarter.」

「Earnings in the systems infrastructure business also contracted because of the personnel reduction accompanying organizational restructuring. However, we aimed to win and expand projects through service-based offerings rather than SES contracts and conducted active proposal activities with Oracle Japan using the proprietary U-Way service, resulting in the acquisition of new end users.」

「In the systems infrastructure business, U-Way has increased opportunities to propose service-based offerings to new end users rather than SES contracts, contributing to higher margins. Although projects won from existing customers in the first quarter were maintained and new projects were acquired, this was not enough to offset the impact of the personnel reduction from organizational restructuring. Revenue from the business for the third quarter of the current consolidated cumulative period was ¥1,332.786 billion, down 6.0% year on year. The gross profit margin rose 2.1 percentage points year on year to 24.7%, owing to higher unit prices negotiated with existing customers and the contribution from U-Way’s OCI series services.」

「In the systems infrastructure business, we acquired new projects from existing customers in the first quarter and new projects through the company’s proprietary U-Way service, but this was not enough to offset the impact of the personnel reduction resulting from organizational restructuring. Revenue from the business for the second quarter of the current consolidated cumulative period was ¥885.614 million, down 3.3% year on year. Negotiations with existing customers to raise unit prices and the contribution from U-Way’s OCI series services helped lift the gross profit margin 1.9 percentage points year on year to 24.3%.」

「In the systems infrastructure business, orders for new projects from existing customers remained strong. In addition, we strengthened collaboration with Oracle Japan, and the sales channels for our proprietary U-Way service, launched in October 2022, expanded. As a result, revenue from the business for the first quarter of the current consolidated cumulative period was ¥449.022 million, up 1.4% year on year. Gross profit margin also rose 2.5 percentage points year on year, mainly because of the contribution from the U-Way service.」

「In the systems infrastructure business, existing projects were expanded and new projects were acquired. In addition, new customer acquisition and orders progressed through the company’s first proprietary service, U-Way Oracle Cloud Infrastructure Implementation and Operations Support Service. As a result, revenue from the business for the current consolidated fiscal year was ¥1,985.723 billion, up 5.4% year on year.」

「In the systems infrastructure business, existing projects continued and new projects were acquired. In addition, acquisition of new customers and orders related to the new U-Way Oracle Cloud Infrastructure Implementation and Operations Support Service progressed, steadily building earnings. However, this was not enough to offset the impact of project cancellations and delayed starts reported in the first quarter. Revenue from the business for the third quarter of the current consolidated cumulative period was ¥1,418.363 billion, down 2.1% year on year.」

「In the systems infrastructure business, the U-Way Oracle Cloud Infrastructure Implementation and Operations Support Service was launched in October 2022, and multiple new customers were acquired. The service is expected to make a significant contribution to profits going forward.」

「On 30 September 2022, we launched the new U-way Oracle Cloud Infrastructure Implementation and Operations Support Service to strengthen and promote implementation and operational support for Oracle Cloud Infrastructure, Oracle’s cloud service. We had conducted trials with existing customers since June 2022. Using this service improved productivity by advancing the automation of system development and standardization of design, enabling delivery at lower cost.」

「In the cloud infrastructure business, we worked to win projects by leveraging knowledge accumulated over the years, including in DX projects for the telecommunications and financial sectors. Although some scheduled projects were canceled at the customers’ request, we responded by reallocating personnel to businesses with strong demand to minimize the impact on revenue.」

「In the systems infrastructure business (cloud infrastructure business), some scheduled projects were canceled at the customers’ request. We responded by reallocating personnel to businesses with strong demand in order to minimize the impact on revenue. As a result, revenue from the systems infrastructure business (cloud infrastructure business) for the third quarter of the current consolidated cumulative period was ¥873.412 million.」

「In the systems infrastructure business (cloud infrastructure business), activity to migrate big data analytics environments to the cloud intensified, and project expansion became increasingly evident. The business continued to perform well from the first quarter, including scope expansion in public-sector and financial-sector infrastructure projects. Revenue from the systems infrastructure business (cloud infrastructure business) for the second quarter of the current consolidated cumulative period was ¥573.852 million.」

「In the systems infrastructure business (cloud infrastructure business), the acquisition of big data analytics infrastructure projects and public-sector and financial-sector infrastructure projects continuing from the previous consolidated fiscal year performed well. As a result, revenue from the systems infrastructure business (cloud infrastructure business) for the first quarter of the current consolidated cumulative period was ¥327.128 million.」

「The cloud infrastructure business is expanding rapidly because of its high convenience, availability, and operability, and is expected to continue growing.」