Growing Demand for Software Investment, Security and Regulatory Compliance

「Demand for upgrades to Windows 11 and customers' information-technology investment toward DX remained firm, supporting firm sales of system equipment and products.」

「In the public works segment, information-processing services related to legal and regulatory amendments and other matters remained firm. In addition, sales of IT equipment, including PCs for local governments and business discussions related to NEXT GIGA for schools, together with related services, supported firm sales of system equipment and products, as well as software development and system sales.」

「Efforts led by the government to unify and standardise core business systems for local governments progressed as part of the digitalisation of administrative services, and some local governments began migrating to systems compliant with the standards.」

「As part of the government's efforts to establish a Government Cloud, including the unification and standardisation of core business systems for local governments, initiatives toward system migration gradually became more concrete. On 31 August, the Standard Specifications for Local Government Information Systems (Standard Specifications for Data and Interoperability Requirements for Local Government Information Systems (Version 1.0)) were published, among other developments.」

「In the information services industry, in the public sector, the Digital Agency was established and progress was seen toward the digitalisation of administrative services to realise a digital society. In the private sector, in addition to ICT investment aimed at improving operational efficiency, initiatives toward digitalisation involving transformations in business models were seen.」

「While companies were seen to restrain or postpone IT investment under these conditions, IT investment in infrastructure development, including the introduction of remote work and the digitalisation of business processes in response to work-style reforms, remained firm.」

「Although profit was below the level of the same period of the previous year due in part to a downturn in development projects for manufacturers following the deterioration in manufacturers' earnings during the COVID-19 pandemic, it exceeded the plan.」

「Amid increasingly severe and complex natural disasters such as earthquakes and torrential rain, and threats such as information leakage and loss resulting from increasingly complex and sophisticated cyberattacks, demand is growing for disaster-resilient, secure and reliable services and infrastructure environments. Accordingly, the importance of the role played by data centers is increasing. In addition, changes were seen following the spread of COVID-19, including growing demand for remote work such as working from home and secure cloud services.」

「In terms of revenue, performance remained firm due to solid business discussions, as well as rush demand ahead of the consumption tax increase and system modifications accompanying the introduction of the reduced tax rate.」

「At the same time, threats such as information leakage and loss resulting from cyberattacks are becoming increasingly complex and sophisticated, and further advances in security technology continue to be required. In addition, data centers continued operating during the blackout caused by the loss of power following the Hokkaido Eastern Iburi Earthquake, increasing the importance of data centers from the perspective of business continuity planning (Business Continuity Plan).」

「As commercial power was lost following the 2018 Hokkaido Eastern Iburi Earthquake, many data centers continued providing services. From the perspective of business continuity planning (Business Continuity Plan) for disasters such as earthquakes, typhoons and torrential rain, the importance of using disaster-resilient operating environments, including data centers, is increasing.」

「In the information services industry, ICT technologies are being used in various fields, including the acceleration of autonomous driving technology development and the promotion of e-government (digital government), against a backdrop of rapid advances in IoT, AI (deep learning) and cloud services. At the same time, threats such as cyberattacks are becoming increasingly complex and sophisticated, and further advances in security technology continue to be required.」

「Specifically, business discussions remained firm, including the expansion of model-based development (MBD) for increasingly advanced and complex automobiles (connected cars), smart factories through the use of IoT in manufacturing, and demand for advanced systems responding to the liberalisation of energy retailing, including electricity and city gas.」

「In the information services industry, although the business environment for business discussions remained firm in the public sector, the earnings environment became increasingly challenging due to a decline following the surge in demand for system modifications related to legal and regulatory amendments and the spread of lower prices through competitive bidding. In the private sector, the business environment for business discussions remained firm as capital investment continued to increase moderately amid improving corporate earnings and other factors. Specifically, business discussions remained firm for proposals of ICT technologies addressing the rapidly changing business environment, including the expansion of embedded software as automotive electronic controls became increasingly sophisticated (smart), smart factories through the use of IoT in manufacturing to solve issues and create value, and demand for advanced systems responding to the liberalisation of energy retailing, including electricity and city gas.」

「In the information services industry, information-processing services related to legal and regulatory amendments remained firm in the public sector. In addition, sales of IT equipment, including PCs for local governments and business discussions related to NEXT GIGA for schools, together with related services, supported firm sales of system equipment and products, as well as software development and system sales.」

「In the information services industry, as capital investment began to recover due to improved corporate earnings and other factors, the business environment for business discussions remained firm, supported by growing demand for embedded software as automotive electronic controls became increasingly sophisticated, system implementation following the liberalisation of energy retailing, including electricity and city gas, and efforts by local governments to fundamentally strengthen information security measures under national leadership following the implementation of the My Number System, including measures addressing internet risks.」

「The business environment for business discussions remained firm, supported by growing demand for ICT-related security solutions such as network security and information-leakage prevention, the expansion of new services incorporating technologies such as AI amid significant advances in the use of IoT and big data, and increased energy-related business discussions following the deregulation of energy markets, including electricity and city gas.」

「In the information services industry, as cloud-based use continues to expand with the growing adoption of SaaS, the business environment for business discussions remained firm, supported by growing demand for ICT-related security solutions such as network security and information-leakage prevention, the expansion of new services incorporating technologies such as AI amid significant advances in the use of IoT and big data, and increased energy-related business discussions following the deregulation of energy markets, including electricity and city gas.」

「In the information services industry, as ICT systems continue to shift from on-premises to cloud-based use, the business environment for business discussions remained firm, supported by growing demand for ICT-related security solutions such as network security and information-leakage prevention, and increased orders for electricity-related products following the opening of the electricity market.」

「In the information services industry, demand for system modifications related to the My Number System had levelled off, but the business environment for business discussions remained firm, supported by increased software investment resulting from higher corporate capital investment and growing demand for ICT-related security solutions such as network security and information-leakage prevention.」

「The business environment for business discussions remained firm, supported by increased software investment resulting from higher corporate capital investment, growing demand for ICT-related security solutions such as network security and information-leakage prevention, demand for system modifications following the launch of the tax and social security number system (the My Number System), and the liberalisation of electricity retailing, among other factors.」