Business Strategy

As demand for cloud services continues to grow steadily against the backdrop of the DX transition among corporations, the Company will continue to add value through cloud services while maintaining its current growth speed with Microsoft Cloud as its core.

In the Japanese IT market which JBS has entered, motivation among companies to invest in digital transformation (DX) continues to remain stable. The need to accommodate a “new normal” is expanding, such as work style reforms accompanying not only improved productivity and business efficiency but also changes in business processes and business models utilizing digital technologies, resulting in an increasing demand for investment in systems. Corporations’ IT investment is expected to remain stable for the time being, and as the shift to clouds by companies accelerates, needs are increasing for gaining knowledge in cloud technology and services and reviewing IT vendor-dependent system design and development.
Under such circumstances, the JBS Group commenced a three-year medium-term management plan in the fiscal year ending October 2022. In the public cloud market which continues to expand, harnessing its ability to provide one-stop solutions from designing, building, and promoting the use of values, with a focus on Microsoft products, the Company has realized business expansion through direct transactions with major enterprises.

• 1 Total amount spent on each cloud service (public cloud and private cloud) by 28,868 domestic companies. Source: MM Research Institute, Ltd. “Domestic cloud service demand trend survey”
• 2 The graph created by JBS based on Gartner research.

Source：1. Gartner, Market Share: IT Services, Worldwide 2021, Dean Blackmore, et al., 8 April 2022 Service= Infrastructure as a Service, Country= Japan, Vendor Revenue Constant Currency、1$=¥106.79(2020), ¥109.79(2021) 2.Gartner, Market Share: Enterprise Public Cloud Services, Worldwide, 2021, Colleen Graham, et al., 26 May 2022 SaaS and IaaS Market Share GARTNER is a registered trademark and service mark of Gartner Inc. or its affiliates in the United States and other countries and is used under license. All rights reserved.

JBS’s basic strategy is to increase the number of Microsoft365 IDs as well as to improve Cloud ARPU (Average Revenue Per User), which is the unit price per customer.
In terms of increasing the number of IDs, we will further increase our share of Microsoft365 license agreements, which are the gateway to cloud adoption by corporations, with a focus on enterprises.
In terms of ARPU expansion, we plan to capture the steadily growing demand for Microsoft365 in the area of the modern workplace, which is the gateway to cloud adoption. Afterwards, we will expand into the area of Data & AI in the office work environment by linking cloud security and various system data connected to Microsoft365. Additionally, our unique solution brand JBS Cloud Suite enables us to provide one-stop support for cloud infrastructure from implementation planning (including support for Lift & Shift to Azure, in-house production, and infrastructure construction necessary for application development) to maintenance and operation. We will expand ARPU by linking the cycle of introduction, operation and maintenance, and further introduction.

At the same time, we will strengthen diversity in conjunction with the aforementioned efforts. In particular, with regard to the appointment of female managers, we will set targets and work on them as we formulate specific plans.
In areas such as upstream design and Data & AI, we will actively pursue alliances to secure engineers. Furthermore, the Company will not be limited to strengthening our own internal human resources and building a framework; instead, we will place the highest priority on converting value to our customers by incorporating the most outstanding technologies and frameworks through partner collaboration and other means.
In anticipation of business expansion in the region and an increase in the number of employees through the aforementioned measures, we are also working to create a comfortable work environment, including the provision of company housing. In addition to state-of-the-art facilities and environmental considerations, we will take the initiative in creating an environment where employees can experience working styles in the age of hybrid work by establishing facilities such as Lucy’s Cafe, a feature of our offices where customers and employees can naturally gather and collaborate with each other.

We will strive for further growth through the creation of new businesses without being restricted by existing businesses.