OREANDA-NEWS. Fujitsu today announced that it will strengthen the organization of its network business in order to make further advances in network virtualization, provide global, general-purpose products that take maximum advantage of advanced technologies, and achieve an expansion of its services business.

Background and Future Direction

The market environment for the network business is undergoing a major transformation as competition intensifies with entrants from industries beyond the industry's conventional boundaries, and as the industry's business model continues to transition from a focus on hardware to a focus on services, in the context of advancing network virtualization technologies. In this environment, there is a desire for the provision of comprehensive services, including operational and business-support services as well as integration services.

To address these changes in the market environment, Fujitsu is changing its business organization, which had been organized by product, to a new structure organized by function, in order to increase the speed of further advances in network virtualization, the provision of global, general-purpose products that take maximum advantage of advanced technologies, and the creation of new services that meet the wide variety of needs of network users for the emerging IoT(1) era. This reorganization will integrate the technologies and expertise Fujitsu has cultivated to date, thereby improving productivity and capital expenditure efficiency, to benefit customers and enhance Fujitsu's global competitiveness.

1. Integration of the sales and product development functions

To integrate within Fujitsu Limited the sales and product development functions for the network business, which are currently dispersed within the Fujitsu Group, as of October 1, 2015, Fujitsu Limited will, through mergers, absorb Fujitsu Telecom Networks Limited and Fujitsu Wireless Systems Limited. In addition to unified operations increasing business efficiencies and eliminating loss due to decentralization, these moves will further strengthen Fujitsu's provision of high valued-added network solutions while enhancing its product development capabilities that leverage Fujitsu's strengths in advanced technologies for network platforms.

2. Integration of the manufacturing function

In integrating the manufacturing functions of Fujitsu Telecom Networks and Fujitsu Wireless Systems, Fujitsu Limited will, as of October 1, 2015, establish a new company, Fujitsu Telecom Networks Limited, which will have overall responsibility for manufacturing network products, with the Oyama Plant as its primary production facility.

With the consolidation of the manufacturing function and integration of its locations, in addition to creating a high-quality, high-reliability manufacturing organization by standardizing technologies and equipment and integrating its core technologies and expertise, Fujitsu will further improve its productivity and capital expenditure efficiency, thereby enhancing its market competitiveness.