Consolidated Financial Results for FY2020
Cloud Business (1)
Growth
Strategy
➤ Cloud shift of Japanese enterprises' large internal core systems just began
➤ Additional system area for IIJ: revenue growth opportunity
IIJ's Cloud Revenue (recurring)
Unit: JPY billion
% = Year over year comparison
Cloud Market in Japan
Cloud penetration among Japanese enterprises
64.7% as of 2019-end, 33.0% as of 2013-end (source: MIC)
Slowly but surely using more Cloud services, yet most of
such usages are primitive ones such as using cloud
services for web and/file servers etc.
Cloud shift is gradually taking place as
26.20
•
23.58 (+11.1%)
•
(+17.1%)
20.13
6.91
17.94
(+12.2%)
6.31
15.66
(+14.6%)
(+11.1%)
5.27
4.74
6.74
4.07
6.11
5.10
4.57
3.96
040
6.36
5.81
3Q
4.93
4.36
3.83
□ 20
1Q
3.80
4.26
4.83
5.35
6.19
FY16
FY17
FY18
FY19
FY20
6.7
6.9
5.8
6.1
6.3
6.2
6.4
5.4
Overseas etc.
0.7
0.7 0.7
0.7
0.7
0.7
□ Public
0.9
0.9 1.2 1.0 1.0
0.7 0.7
1.3
1.3
0.8
Raptor
3.8
4.1
4.4 4.3
4.4
4.5
4.6 4.7
Private
1019 2019 3019 4019 1020 2020 3020 4020
4Q20 Cloud revenue recognition: 89.6% in systems operation and
maintenance, 10.4% in outsourcing services
✓ Private Cloud services and other services that are similar to systems
integration, meeting specific needs, are recognized in systems operation
and maintenance
✓ Public Cloud services which are similar to conventional web hosting
services or simple network services in nature are recognized in
outsourcing services
•
Japanese blue-chips' internal systems are quite large and
complicated can't migrate all at once
Japanese enterprises consider whether to re-invest their
on-premise systems or migrate to Cloud services when
their existing systems approach to the end of life
Seeing some advanced usages
•
Nippon Express (one of the largest logistics companies):
replacing on-premise critical business operation system to
IIJ Cloud (3,500 servers, 2PB storage) etc.
IIJ's Cloud Service Offerings
Mainly laas
Raptor (ASP foreign exchange
system developed by IIJ) is
currently used by 22 FX service
providers including Hirose Tusyo,
LINE Securities, au Kabucom,
Nomura Securities and Sony Bank
SaaS business through
partnership
Internet Initiative Japan Inc.
Raptor
18%
Public
10%
Private
69%
Based on IIJ's FY20 results
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