Consolidated Financial Results for FY2020
Systems Integration (SI)
Appendix
Offer Sl as a cross selling element to fully meet Japanese enterprise' IT
needs
Sl clients are companies already using our network services
Do not depend on particular industry to generate revenue, just like the overall customer portfolio,
because IIJ offers systems needed by any industry like Office IT.
➤ Most of SI projects are Internet related such as Office IT, online service
platforms, large-scale website, etc.
Internal system and/or large-scale application development, main frame related projects are covered
by legacy system integrators
Sometimes co-work with legacy Sler on large-scale projects in which they cover application
development part and IIJ covers Internet related system construction
Business Model
Revenue
•
Cost
Construction (one-time): recorded upon constructed system is received by a client.
Operation and Maintenance (recurring): systems constructed by IIJ will be operated and maintained by IIJ as well
•
Profit
•
•
Each SI project's cost differ. Make estimate for each project
✓
Costs are consisted of purchasing, outsourcing personnel, personnel, and depreciation and amortization
SI profitability to improve as we accumulate the revenue of operation and maintenance, which profitability is higher
than construction profitability
Construction profitability is lower because of bidding process etc.
Internet Initiative Japan Inc.
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