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ICT Investment Trends in Japan: Business and technological innovations foster ICT investments

ICT Investment Trends in Japan: Business and technological innovations foster ICT investments

Summary

ICT Investment Trends in Japan, presents the findings from a survey of 94 Japanese enterprises regarding their Information & Communications Technology (ICT) investment trends. The survey investigates how Japanese enterprises currently allocate their ICT budgets across the core areas of enterprise ICT expenditure: hardware, software, IT services, communications, and consulting.

The report illustrates the core technologies that enterprises are investing in, including enterprise applications, security services, IoT, and cloud computing. The survey also highlights the approach to purchasing technology adopted by enterprises in Japan. Through GlobalData's survey, the report aims to provide a better insight to ICT vendors and service providers when pitching their solutions to enterprises in Japan.

The recovering global economy and appreciating exports helped Japanese economy advance for five straight quarters. Moreover, the gradual rise in GDP is leading to the marginal increase in ICT investments in the country. Japanese enterprises are optimistic about investing in ICT, as they realize that adoption of technologies could help them increase their efficiency, visibility, and profitability.

In particular, it provides an in-depth analysis of the following -

  • How ICT budgets are set to change in 2017 in terms of their overall size
  • Allocation across the core elements of IT spend, including hardware, software, services, communications, and consulting
  • Distribution of ICT money in areas such as the networks, applications, service desk, and data centers
  • Which ICT functions Japanese enterprises are interested in outsourcing
  • Japanese enterprises’ investment priorities based on their budget allocations across core technology categories such as enterprise applications, security services, IoT, and cloud computing
  • Factors that are influencing Japanese enterprises’ investments in each technology category
  • How Japanese enterprises’ IT budgets are currently allocated across various segments within a technology category
  • Japanese enterprises’ distribution of their ICT budget across various segments within a technology category
  • Vendor satisfaction ratings for various core and advanced technology categories
  • Insight into Japanese enterprises’ preferred buying approaches
  • Business objectives that Japanese enterprises are looking to achieve through their IT investment strategies
  • Factors that are influencing Japanese enterprises’ decisions to select an ICT provider
Scope
  • Japan’s technological advancement is one of the key factors leading to its industrial development. In line with this, Japanese enterprises plan to continue investing the highest proportion of their ICT budgets in the core domains of hardware, software, and IT services.
  • Japan boasts a history of unparalleled progress in hardware technology. Therefore, Japanese enterprises spent the highest proportion of their ICT budgets on hardware in 2016. A similar trend is also expected in 2017 with enterprises planning to invest considerably in the hardware domain.
  • The survey also finds that Japanese organizations are assigning greater importance to the business objective of increasing customer satisfaction and look for vendors that have some expertise in their industry.
Reasons to buy
  • Understand how the Japanese enterprises ICT landscape is set to change in 2017 to prioritize your target market
  • Comprehend how ICT money are being allocated by Japanese enterprises in specific verticals and size bands to improve your market penetration
  • Make effective business decisions by recognizing the opportunities within each of the core areas of ICT spend (hardware, software, IT services, telecommunications, and consulting)
  • Realign your sales initiatives by understanding the current strategic objectives of Japanese enterprises
  • Enhance your market segmentation with the included, detailed breakdown of opportunities within selected technology categories (enterprise applications, security services, IoT, and cloud computing)
  • Prioritize your focus areas by understanding which factors are influencing Japanese enterprises’ decisions when selecting an ICT provider
  • Understand the changes in customers’ priorities and identify the business objectives that Japanese enterprises are looking to achieve through their ICT investment strategies


  • Key findings
  • Key implications for ICT vendors
  • Technology friendly Japanese enterprises looking to moderately increase ICT investments
  • Survey demographics
  • Japanese enterprises aiming to increase ICT budget marginally in 2017
  • Hardware and software are the predominant areas of ICT investment in 2017
  • Network & communications equipment primarily dominate the ICT hardware budget
  • Software licenses constitute the largest share of software budget allocations among Japanese enterprises
  • Application services are dominating the third-party IT services expenditure
  • Network services dominate telecommunications budget
  • Cost effectiveness and pay-per-use cloud solutions is driving Japanese enterprises' investment in IaaS
  • Japanese enterprises are investing in public cloud as they look for cost effective means of cloud implementation
  • Service desk functions are set to gain traction in 2017
  • Applications outsourcing is the most popular outsourcing function among Japanese enterprises
  • Commerce solutions are expected to gain traction among Japanese enterprises
  • Adobe is the most popular vendor of enterprise application solutions among Japanese respondents
  • Majority of Japanese enterprises currently deploy intrusion detection & prevention solutions
  • Significant proportion of Japanese enterprises avail security services of IBM
  • Auto ID & mobility technologies are the popular IoT solutions for a majority of Japanese respondents
  • Microsoft leads the list of IoT vendors among Japanese enterprises
  • Hybrid cloud is expected to witness increased attention from Japanese enterprises in the next two years
  • IBM leads the list of cloud computing vendors among Japanese enterprises
  • Increasing customer satisfaction is the prominent business objective influencing IT investment strategy
  • Expertise in your industry remains the most important criterion while choosing an ICT provider
  • Considerable proportion of Japanese enterprises rely on top management for the purchase of big data and analytics solutions
  • Appendix

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