Business briefing materials etc.

September 15, 2021: Business Briefing on IIJ's Cloud Business

Summary of the Briefing

At the briefing, we talked about IIJ's Cloud business current status, Cloud adoption in Japan (only 20% of the companies we surveyed had migrated more than 50% of their servers: Still most of enterprise IT asset are on on-premise), and new services and functions announced that day: "IIJ GIO Infrastructure P2 Gen. 2" which is to promote Cloud migration and new functions for "IIJ Unified Operation Management Service" which aims for higher productivity when operating and managing enterprise IT systems.

Speakers:

Naoshi Someya, Executive Officer, Division Director of Cloud Division
Naoki Miyazaki, General Manager of Cloud Service 3 Department
Ryo Fukuhara, Deputy General Manager for Cloud Service 3 Department

Questions and Answers

Question: Among IIJ's Cloud service users, what is the ratio of Multi-Cloud to Hybrid Cloud?

Answer: Hybrid Cloud is larger as Cloud migration from on-premise is the common. Currently our Multi-Cloud users who are about a quarter of our approximately 2,000 Cloud users, along with Multi-Cloud penetration, we believe that it may grow to account for half of the users in the future.

Question: What is IIJ's competitive advantage when it comes to Multi-Cloud?

Answer: We hardly see a case where our Cloud user is only contracted with our Cloud services. Our clients usually use our Cloud services together with other network services such as Internet connectivity services. The fact that we can provide Cloud services, network services, systems integration altogether is our competitive advantage.

Question: What is your outlook for Cloud service revenue growth?

Answer: Our Cloud service revenue has been increasing by double digits. With these new services, we aim to further grow the business.

Question: You said you expect to be granted ISMAP (*) this fall. What is your purpose of becoming a registered ISMAP Cloud Service Provider? How would you like to get government projects?

Answer: As a registered ISMAP Cloud Service Provider, we expect our presence as a safe and trustworthy Cloud service provider to be widespread. Because being a registered ISMAP provider is a requirement to be a vendor for government projects, we aim to accumulate such orders.

（*）ISMAP (Information system Security Management and Assessment Program) is a program administered by the Japanese government and designed to ensure appropriate security measures for government information systems. The program aims for smooth adoption of Cloud services by government as it is to evaluate and register Cloud services that meet government. (excerpt from official HP)

Question: How many Cloud servers do you own? Also, what is the capacity situation for Shiroi Data Center Campus?

Answer: We own about a few ten thousand. The new services announced today are to be offer from Shiroi. The capacity of Shiroi is to be expanded gradually.