By Mr. Yoshifumi Horikoshi, Team Leader, IP Communication Department, KDDI Corp
KDDI is one of the largest telecommunications carriers in Japan (with 5 trillion yen in annual sales), and the bulk of its earnings are in mobile phone services, corporate network services, and data center business.
Customer segments range from individuals to corporations and public institutions, but among them, financial institution customers are significant for KDDI. The ability to provide dealing systems to customer’s trading business has been key to expanding in the financial participant market segment. Moreover, the merits of being able to offer customers various one-stop services and solutions is important, and KDDI believes this differentiates it from other companies.
Collaboration with IPC began in 1994, and at that time, more than 70% of the domestic dealing systems including those used in foreign financial institutions, were made in Japan. We were competing with several foreign manufacturers over what little remained. This is the case even today that a large number of major domestic electrical manufacturers or Keiretsu (* see below) related system integrators in Japan have long-standing established ties with financial institutions. For these reasons, it is challenging for a foreign-affiliated company to enter the Japanese marketplace immediately and directly. As a result, individual foreign-affiliated manufacturers engage in business development partnerships with major Japanese SI enterprises. IPC began its business relationship as an agency of KDDI’s TeleComet subsidiary and competed with major general electronics manufacturers that had almost monopolized the domestic market at that time. Amid this competition, individual foreign-affiliated manufacturers increased orders for Japanese banks and securities companies and gradually broke Japanese makers’ monopoly status.
During this period, however, the foreign-affiliated manufacturers of the competition did not always have a strong relationship with business partners in Japan. For Japanese partners, service level and reliable production capacity is extremely important. KDDI and IPC have maintained a very good relationship for 24 years with that focus in mind. Working with IPC has helped KDDI maintain significant market share in Japan. For KDDI, there are few examples of relationships with foreign-affiliated companies which have lasted over the long term as they have with IPC. There is no doubt that the strength of IPC’s product development and product quality are at the basis of it all, but more important than that, is IPC’s willingness to listen to Japanese customers and KDDI, complementing this, has spared no effort in building long-term relationships with Japanese customers. KDDI has a customer-focus business approach resulting in high marks and trust from customers. These efforts have resulted in obtaining considerable market share within the domestic Japanese market and further an expansion into Singapore and Myanmar to provide systems to Japan-related customers.
Going forward, the market will continue to change even more than we’ve witnessed to date. Assuming the market will gradually shift to cloud services at some point in the future, IPC’s Unigy 360 will be well positioned to meet the needs of our market. I hope we can continue our alliance for the next quarter century.
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