FY02/21 Financial Summary
2020.3.1 - 2021.2.28
Serverworks Co., Ltd. (Securities code: 4434)
Our Countermeasures against COVID-19
Initiatives to prevent infection of COVID-19
・Continuously paying the remotework allowance to all employees ・Recommend employees to work from home even after the lifting of
the state of emergency on March 21
Impact on business continuity and performance
・The impact on business execution is insignificant since remotework has been maintained and
actively promoted.
・The impact of the state of emergency declared in January 2021 on the financial results for
fiscal year ending February 2021 is insignificant.
2
Topics
FY2021 Q4 Topics
Listed market changes to the First Section of the Tokyo Stock Exchange
Re-listed on the First Section of the Tokyo Stock Exchange from Mothers, aiming to
expand/progress as a comprehensive cloud company on January 15, 2021.
Rated among "Best Workplaces JAPAN 2021" continuously for 4 years
Wins the "Best Workplaces JAPAN 2021" by Great Place to Work® Institute Japan for 4
consecutive years
Capital and Business Partnership with WingArc1st Inc.
In March 2021, we entered into a capital and business partnership with WingArc1st, which
develops and distributes products for Business Form Infrastructure Solutions as well as the
Data Empowerment Business with BI tools. As a result of this capital alliance, and through collaboration between us, the companies will make use of their respective strengths and further
accelerate the growth and expansion of Digital Transformation.
4
Financial Results
Earnings Forecast for FY02/21
Revised earnings forecast on October 9, 2020. Extraordinary income based on sales of the investment securities, which was not included in the original plan, and various expenses related to MS warrants and market changes are included.
FY02/20 | Composition | FY02/21 | Composition | % of year-earlier level | |
results | (%) | forecasts | (%) | ||
Net Sales | 6,811 | 100.0 | 8,003 | 100.0 | 117.5 |
Gross profit | 1,086 | 15.9 | 1,190 | 14.9 | 109.6 |
Operating profit | 417 | 6.1 | 392 | 4.9 | 94.0 |
Ordinary profit | 421 | 6.2 | 377 | 4.7 | 89.5 |
Profit | 333 | 4.9 | 448 | 5.6 | 134.5 |
※There is no change in the full-year earnings forecast from the "Notice concerning recording of extraordinary income (Gain on sale of investment securities) and revision of full year forecast for the fiscal year | |
ending February 2021", announced on October 9th, 2020. | 6 |
。 | |
Earnings Results for Full-Year FY 02/21
Overachieved in all segments of full-year-forecast. | |||||||
Compared to the previous year, items other than ordinary profit increased, and growth was | |||||||
maintained even under the COVID-19 situation. | (Unit: million yen) | ||||||
FY02/20 | Composition | FY02/21 | Composition | % of year-earlier | |||
results | (%) | results | (%) | level | |||
Net Sales | 6,811 | 100.0 | 8,029 | 100.0 | 117.9 | ||
Gross profit | 1,086 | 15.9 | 1,224 | 15.3 | 112.8 | ||
Operating | 417 | 6.1 | 419 | 5.2 | 100.5 | ||
profit | |||||||
Ordinary profit | 421 | 6.2 | 410 | 5.1 | 97.5 | ||
Profit | 333 | 4.9 | 482 | 6.0 | 144.7 | ||
EBITDA | 489 | 484 |
7
Net Sales
Record 117.9% growth year on year. We achieved 100.3% compared to FY02/21 earnings forecasts.
(million yen) | ||||||||
10,500 | Cloud Integration | Resale | MSP | Others | ||||
6,811
7,000
784
4,477
3,066579
3,500 | 5,390 |
425
3,230
2,202
Difference with full-year target
Results:8,029
Forecast:8,003
(% of year-earlier level:
117.9%)
961
6,626
0 | 372 | 610 | 577 | 425 | ||
2018年2月期 | 2019年2月期 | 2020年2月期 | 2021年2月期 |
8
Profit Margins
Business activities have been recovering from the impacts of the COVID-19 situation.
Both profits and profit margins maintain above the planned level.
Gross profit/Gross profit margin
Gross profit | Gross profit margin | |
400 | 20.6% | ||||||||||||
(Million yen) | 18.1% | 19.0% | 19.1% | 16.9% | 16.6% | 17.1% | 16.8% | ||||||
13.8% | 12.7% | 15.2% | 16.1% | ||||||||||
200 | 376 | ||||||||||||
321 | |||||||||||||
278 | 243 | 272 | 284 | 285 | 244 | 282 | |||||||
208 | 209 | ||||||||||||
163 | |||||||||||||
0 | |||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||
FY02/19 | FY02/20 | FY02/21 | |||||||||||
Operating profit/Operating profit margin | Operating profit | Operating profit margin |
200 | 7.8% | 8.9% | |||||||||
7.2% | 7.0% | 6.1% | 6.7% | 6.7% | |||||||
5.2% | 5.1% | 4.8% | 5.4% | ||||||||
3.6% | |||||||||||
100 | |||||||||||
130 | 112 | 105 | 157 | ||||||||
78 | 79 | 100 | 100 | 89 | 103 | ||||||
47 | 69 | ||||||||||
0 | |||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 |
(margin)
30.0%
20.0%
10.0%
0.0%
(margin)
10.0%
5.0%
0.0%
FY02/19 | FY02/20 | FY02/21 | 9 |
FY02/21 Net Sales by Product/Service(*) Segment
(Unit: million yen) | ||||||
FY02/20 | Composition | FY02/21 | Composition | % of year- | ||
results | (%) | results | (%) | earlier level | ||
Cloud Integration | 577 | 8.5 | 425 | 5.3 | 73.7 | |
Resale | 5,390 | 79.1 | 6,626 | 82.5 | 122.9 | |
MSP | 784 | 11.5 | 961 | 12.0 | 122.6 | |
(Managed Service Provider) | ||||||
Other | 59 | 0.9 | 16 | 0.2 | 26.8 | |
Total | 6,811 | 100.0 | 8,029 | 100.0 | 117.9 | |
※ The explanation of each services is described in detail at page 37
10
Quarterly Net Sales
The Cloud Integration services which had been affected by the COVID-19 situation increased its net sales by 35% compared to the 3rd quarter. MSP and Resale experienced good performance, and net sales of all the segments
surpassed those of the same quarter of the previous year.
(million yen) | ||||||||||||||||||||||||
2,500 | Cloud Integration | Resale | MSP | Others | ||||||||||||||||||||
2 | ||||||||||||||||||||||||
2,000 | 15 | 8 | 1 | 253 | ||||||||||||||||||||
216 | 3 | |||||||||||||||||||||||
226 | ||||||||||||||||||||||||
14 | 16 | 233 | 247 | |||||||||||||||||||||
1,500 | 13 | 13 | 191 | 204 | ||||||||||||||||||||
162 | 170 | |||||||||||||||||||||||
15 | 15 | 14 | 14 | 1,713 | 1,942 | |||||||||||||||||||
1,000 | 139 | 145 | 1,580 | 1,553 | ||||||||||||||||||||
17 | 17 | 16 | 124 | 132 | 1,100 | 1,084 | 1,282 | 1,309 | 1,549 | |||||||||||||||
111 | ||||||||||||||||||||||||
500 | 92 | 96 | 667 | 623 | 721 | 784 | ||||||||||||||||||
491 | 514 | 529 | ||||||||||||||||||||||
0 | 79 | 77 | 96 | 118 | 131 | 137 | 157 | 183 | 171 | 145 | 136 | 124 | 106 | 68 | 106 | 143 | ||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |||||||||
FY02/18 | FY02/19 | FY02/20 | FY02/21 |
* Due to the nature of AWS Resale transactions, total usage fees are recorded as net sales.
11
(Reference) Resale: Exchange rate trend
Although the continued strong yen affects Japanese yen based revenue, the strong yen is working positive for customers and the cloud usage is steadily and surely increasing. (next slide)
There is no impact on profits since purchase price will decrease as well.
(yen)
114
111.87
112 111.01
Q1 | Q2 | Q3 | Q4 | |||
110 | 109.37 | 108.87 | 109.56 | 109.55 | 109.07 | 109.45 | |||||||
108.64 | 108.83 | ||||||||||||
107.96 | |||||||||||||
107.75 | 107.53 | 107.74 | |||||||||||
108 | |||||||||||||
106.47 | 106.88 | ||||||||||||
106.24 | |||||||||||||
105.81 | |||||||||||||
106 | 105.39 | ||||||||||||
104.61 | 104.6 | 104.48 | |||||||||||
103.89 | |||||||||||||
103.52 | |||||||||||||
104 | |||||||||||||
102
100
98
03/19 04/19 05/19 06/19 07/19 08/19 09/19 10/19 11/19 12/1901/20 02/20 03/20 04/20 05/2006/20 07/20 08/20 09/2010/20 11/20 12/20 01/21 02/21
FY02/20 | FY02/21 |
※ Mizuho Bank official market price : End of month TTM rate | 12 |
Resale: AWS Usage Fees, Reserved Instances, Saving Plans(*)
Normal AWS usage fees grow organically without falling. Purchases of Reserved Instances and Saving Plans were same as years earlier.
(Unit: thousands of dollars)
Total AWS usage fees | Total for Reserved Instances (RI) and Savings Plans (SP) |
20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
Normal AWS usage fees grow organically
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 |
FY02/19 | FY02/20 | FY02/21 |
* AWS service under which substantial discounts are offered to customers who pay a fixed reservation fee and commit to AWS usage for a certain period
13
Resale: Number of AWS Accounts, ARPU
(Unit: # of accounts) | No. of AWS accounts | ||
1,500 | 1,424 | ||
1,343 | |||
1,273 | |||
1,250 | 1,184 | ||
1,140 |
1,058 | ||
1,002 | ||
1,000 | 902 | |
807 | ||
750 | 701 726 | |
593 | 640 | |
500 | 468 499 534 | |
(Unit: USD) | ARPU* | * Obtained by dividing AWS usage fees, |
including Reserved | ||
Instances, by number of customers. |
16,000
14,000
12,000
10,000
8,000
6,000
4,000
250
2,000 | |||||||||||||||||||||||||||||
0 | 0 | ||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||||||||||||||||||
FY02/18 | FY02/19 | FY02/20 | FY02/21 | FY02/19 | FY02/20 | FY02/21 |
14
Cloud Integration: The trend of each index
The number of projects and customers were increased compared to the 3rd quarter.
They were also increased even compared to the cumulative period (Q1-Q4) and the same period (Q4) of previous fiscal year. Project unit price keeps one-million-yen level.
# of customers (companies) / # of projects
# of | ||||||||
Project unit price | # of projects | |||||||
customers | ||||||||
Project unit price (thousands of yen)
250
200
150
100
145 | 2,500 | |||||||||||
139 | ||||||||||||
131 | ||||||||||||
1,968 | ||||||||||||
119 | ||||||||||||
115 | 115 | 2,000 | ||||||||||
106 | 104 | 107 | 104 | 1,710 | 108 | 104 | 99 | |||||
93 | ||||||||||||
1,365 | 100 | 1,343 | 1,308 | 88 | 1,500 | |||||||
1,191 | ||||||||||||
1,135 | 1,042 | 1,071 | ||||||||||
1,029 | ||||||||||||
897 | 903 | |||||||||||
809 | 773 | 1,000 | ||||||||||
745 | 740 | |||||||||||
50 | 63 | 62 | 82 | 62 | 68 | 77 | 79 | 500 | |||||||||
60 | 60 | 61 | 58 | 56 | 53 | 59 | |||||||||||
48 | 50 | ||||||||||||||||
0 | 0 | ||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||
FY02/18 | FY02/19 | FY02/20 | FY02/21 | ||||||||||||||
15
MSP: SRE(*) Portion of MSP
The SRE, the dedicated team that handles everything from system construction to operation to support customer specific needs, portion of business has increased.
SRE
MSP MSP(SRE)
(Unit: thousands of yen)
CI | MSP | 496,992 | Approx. | 464,203 | |
51% | |||||
*SRE: Site Reliability Engineering. The details are described at page 38, 39.
16
Stock Business(*)
(million yen) | One-time revenue | Recurring-revenue | Share of recurring-revenue businesses | (share) | |||||||||||||
2,500 | businesses | businesses | 98% | ||||||||||||||
96% | |||||||||||||||||
93% | 94% | 94% | 94% | 96% | |||||||||||||
94% | |||||||||||||||||
2,000 | |||||||||||||||||
90% | 91% | 92% | |||||||||||||||
90% | |||||||||||||||||
1,500 | 87% | ||||||||||||||||
86% | 87% | 86% | 87% | 88% | |||||||||||||
85% | 85% | ||||||||||||||||
84% | 86% | ||||||||||||||||
84% | |||||||||||||||||
1,000 | |||||||||||||||||
84% | |||||||||||||||||
82% | |||||||||||||||||
500 | 80% | ||||||||||||||||
78% | |||||||||||||||||
0 | 76% | ||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||
FY02/18 | FY02/19 | FY02/20 | FY02/21 |
- One-timesales from Cloud Integration, where sales are recorded at the time of customer acceptance, positioned as one-time revenue, is specified as "Flow Business" . Recurring sales from AWS monthly usage fees, monthly charges for proprietary services such as Cloud Automator, licensing fees for continued use of third-party software services, and MSP usage fees and maintenance fees for AWS server monitoring and backup services (all of which entail continued
AWS usage by companies) are specified as "Stock Business". | 17 |
Life Time Value
The existing customers, who had been contracted with us, have a trend to increase our net sales (total of CI, Resale, MSP)
over the years.
(million yen) | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 | ||||||||||||||||||||||||||||||||
FY2016 | FY2018 | FY2019 | |||||||||||||||||||||||||||||||||||
FY2017 | |||||||||||||||||||||||||||||||||||||
8,000 | |||||||||||||||||||||||||||||||||||||
7,000 | |||||||||||||||||||||||||||||||||||||
6,000 | |||||||||||||||||||||||||||||||||||||
5,000 | |||||||||||||||||||||||||||||||||||||
4,000 | |||||||||||||||||||||||||||||||||||||
3,000 | |||||||||||||||||||||||||||||||||||||
2,000 | |||||||||||||||||||||||||||||||||||||
1,000 | |||||||||||||||||||||||||||||||||||||
0 | |||||||||||||||||||||||||||||||||||||
FY2013 | FY2014 | FY2016 | FY2017 | FY2019 | |||||||||||||||||||||||||||||||||
FY2011 | FY2012 | FY2015 | FY2018 |
* The sales revenue before FY2017 is an estimated value based on re-calculated AWS resale revenue using recent results
18
Number of Employee Trend
Achieved original hiring plan of 22 people for this year (29 people were hired).
(Unit: employees)
200
Sales, Marketing, | Manufacturing | ||||||
Director | |||||||
Admin staff | staff | ||||||
157
150 | 141 |
94 | 103 | 92 | |||||
100 | |||||||
90 | |||||||
71 | 60 | ||||||
52 | |||||||
50 | 40 | 43 | 57 | ||||
35 | 35 | ||||||
25 | |||||||
0 | 6 | 7 | 8 | 8 | 8 | ||
FY02/17 | FY02/18 | FY02/19 | FY02/20 | FY02/21 | |||
※The number of employees includes the number of temporary employees (part-time employee) | 19 |
Analysis of Factors Affecting Operating Profit in FY02/21
The purchase cost has increased due to the increase in Resale services and the labor cost and personnel expenses have increased resulting from the active hiring. The operating profit increased 0.5% YoY.
Net sales increase: +1,217
FY02/20
Operating
profit
417
Resale
+1,236
MSP+177
Others -43
Cloud Integration
-152
Labor
expenses
+ 170Manufacturing expenses -119
Work in process, etc…: -30 | Cost of |
Outsourcing expenses: -62 | |
sales | |
Travel expenses: -20 | |
+1,079 | |
Recruitment expenses: -12 | |
Depreciation expenses: -8 | |
Rent expenses on land and buildings: +10 | |
Communication expenses: +8 | |
Others: -4 |
Cost of sales
(Unit: million yen)
Increased purchasing due to higher sales in Resale services
Personnel expenses:+100 Tax and dues:+32 Communication expenses:+11 Advertising expenses:+10 Hiring expenses:+8
Rent expenses on land and buildings :+5 Travel Expenses:- 17 Entertainment expenses:- 12
Provision of allowance for doubtful accounts:- 4 Others:+3
Selling, general | FY02/21 | |||
and administrative | ||||
expenses +136 | Operating | |||
profit | ||||
419 | ||||
Selling, General and | ||||
Administrative expenses |
Operating profit +2 million yen (+ 0.5% YoY.)
20
FY02/21 Financial Condition: Balance Sheet (Summary)
In addition to the increase in "current assets" and "total equity" based on the issuance and exercise of stock acquisition rights, the increase in "fixed assets" and "fixed liabilities" due to the increase in the valuation of investment securities. Retained earnings are also steadily accumulating.
(Unit: million yen) | |||
FY02/20 | FY02/21 | Change | |
Current assets | 3,004 | 8,999 | 5,994 |
Non-current assets | 1,467 | 1,718 | 250 |
Property, plant and equipment | 69 | 72 | 3 |
Intangible assets | 100 | 112 | 12 |
Investments and other assets | 1,297 | 1,532 | 234 |
Total assets | 4,472 | 10,717 | 6,245 |
Total liabilities | 1,437 | 1,862 | 425 |
Current liabilities | 1,148 | 1,519 | 371 |
Non-current liabilities | 288 | 342 | 54 |
Total net assets | 3,035 | 8,855 | 5,820 |
Total liabilities and net assets | 4,472 | 10,717 | 6,245 |
21
Current Ratio
Based on the increase in cash by exercising the stock acquisition rights, the current ratio exceeded 592% and liquidity on hand is in a good shape.
(million yen)
10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
Current | Current | Current ratio | |||||||
assets | liabilities | ||||||||
592%
262%8,999
166%
1,963 | 3,004 | ||
1,182 | 1,148 | 1,519 | |
FY02/19 | FY02/20 | FY02/21 |
(ratio)
700%
600%
500%
400%
300%
200%
100%
0%
22
FY02/22 Earnings Forecasts
Although much anticipated, it would take same more time until the infection of the Covid-19 could be contained. Our business forecasts for the fiscal year ending February 2022 are also conservatively planned under this situation.
(Unit: million yen) | ||||||
FY02/21 | Composition | FY02/22 | Composition | % of year-earlier | ||
results | (%) | forecasts | (%) | level | ||
Net Sales | 8,029 | 100.0 | 9,300 | 100.0 | 115.8 | |
Gross profit | 1,224 | 15.3 | 1,543 | 16.6 | 126.0 | |
Operating | 419 | 5.2 | 446 | 4.8 | 106.4 | |
profit | ||||||
Ordinary profit | 410 | 5.1 | 471 | 5.1 | 114.8 | |
Profit | 482 | 6.0 | 326 | 3.5 | 67.7 | |
* Since our business is a single segment of the cloud business, we do not disclose the earnings forecast for each segment. | |
For the forecast figures of AWS Resale as percentage of net sales, we have adopted the standard scenario of the fiscal 2021 dollar-yen exchange rate forecast report published by financial institutions, | |
which is 103 yen per dollar. | 23 |
Company Profile
Company Profile *as of 2/28/2021
Company Name | Serverworks Co., Ltd. | |||
Business Domain | System Planning/Development/Operation utlizing Cloud Computing | |||
Founded | February, 2000 | |||
Capital | 3,201,973,059 yen | |||
Headquater | Agebacho 1-21,Shinjuku-ku, Tokyo, Japan | |||
Office | Tokyo office ANNEX, Osaka, Fukuoka, Sendai | |||
Number of Employees | 149 | |||
Management | Ryo Oishi | CEO | ||
Takashi Hashiba | Senior Vice President | |||
Hiroyuki Oshio | Senior Vice Presidnet & CAO | |||
Ichiro Terajima | Outside Director | |||
Mikiya Inoue | Audit & Supervisory Board member | |||
Tsutomu Toyao | Audit & Supervisory Board member | |||
Akihito Mochizuki | Audit & Supervisory Board member | |||
Shigetoshi Heiho | Audit & Supervisory Board member | |||
Affiliated company | Sky365 Co., Ltd. | |||
Major Shareholders | Board Members, TerraSky Inc., NTT Communications Corporation, NTT Data Corporation | |||
Certification | APN Premier Consulting Partner | |||
AWS Migration Competency Partner |
AWS Digital Workplace Competency
AWS Managed Service Provider Program
AWS Well-Architected Partner Program
ISO /IEC 27001 (JIS Q 27001)
25
Management Introduction
President & CEO | Ryo Oishi |
Oishi graduated from Tohoku University, majored in Economics, and joined Marubeni Corporation, which is one of the biggest "Sogo-Shosha". He engaged in establishing communication network related subsidiary as well as planning internet related business and sales. In Feburary 2000, he founded the company. After he started AWS business in 2009, Oishi became one of the first Cloud Evangelists in Japan and continue to evangelize Japanese market to use Cloud.
Senior VP | Takashi Hashiba |
Hashiba graduated from Tokyo University of Agriculture, majored in Agriculture, and joined wholesale process food company, experiencing sales role. After joining our company in April 2006, he became head of sales and technical department and engaged in a large number of system installations. After starting AWS business, he continued engaging in numerous projects as well and provide huge contribute to expand our business. He became Senior VP in October 2013.
Senior VP & CAO | Hiroyuki Oshio |
Oshio graduated from Kobe University, majored in Economics, and joined Marubeni Corporation. He engaged in planning and installation of Internet enabled systems. Then, he joined software venture company and became SVP at subsidiary company in abroad as well as General Manager of Marketing. After joined our company in October 2013, he served as a head of Business Development as well as back office team. Oshio became Senior VP in August 2014.
Outside Director | Ichiro Terajima |
Terajima graduated from Tokyo University, majored in Engineering, and joined Sekisui Chemical Co., Ltd. He also studied at MIT and established AI venture company inside of the company, experienced wide variety of business roles. He became General Manager of Information Systems Dept. and served as a Chief of Information system group. He Joined TERRANET as a company representative. Terajima joined our company as Outside Director in November 2017.
26
About Amazon Web Services(AWS)
Market environment:About Public Cloud
A method of using software/Database/Server storage and other functions as a service via internet
On-premise | Public Cloud |
Company
Individual Internet Company
In-house equipment (Data center)
Server procurement,Pay only for what you use operation and maintenance costs
28
Market environment:Public Cloud Classification
SaaS : Software as a Service | Example |
Salesforce, Kaonavi, | |
Provide software package via internet | |
TeamSpirit, sansan etc… | |
IaaS : Infrastructure as a Service | Example |
Provide hardware and ICT infrastructure via internet | AWS, Microsoft Azure |
29
Market Environment: AWS Continues to Lead
Selected as a "Leader", the world's most visionary and excellent execution ability company, for
10th consecutive year at Gartner's Magic Quadrant for Cloud Infrastructure and Platform Services
A leader in the cloud computing world with largest market share. Based on the customers feedback, the company continues to provide new services and functional improvements one after another.
Source:https://www.slideshare.net/AmazonWebServices/awsome-day-2019-keynote | |
Source:https://aws.amazon.com/jp/blogs/news/aws-named-as-a-cloud-leader-for-the-10th- | |
consecutive-year-in-gartners-infrastructure-platform-services-magic-quadrant/?nc1=b_rp | |
30
Market Environment: AWS Market Share
AWS still maintains its leadership position in the global cloud market share in 2020.
Source: https://www.gartner.com/en/newsroom/press-releases/2020-08-10-gartner-says-worldwide-iaas- | Source: https://www.srgresearch.com/articles/quarterly-cloud-spending-blows-past-30b-incremental- |
public-cloud-services-market-grew-37-point-3-percent-in-2019 | growth-continues-rise |
31
Market Environment: AWS Market Share
AWS continues to grow sustainably. Operating profit rose to about 59% of
Amazon's total operating profit.
(million dollars) | Net Sales | AWS | North America | International | ||||||||||||||||||||
100,000 | ||||||||||||||||||||||||
80,000 | ||||||||||||||||||||||||
60,000 | ||||||||||||||||||||||||
40,000 | ||||||||||||||||||||||||
20,000 | ||||||||||||||||||||||||
5,442 | 6,105 | 6,679 | 7,430 | 7,696 | 8,381 | 8,995 | 9,954 | 10,219 | 10,808 | 11,601 | 12,742 | |||||||||||||
0 | ||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |||||||||||||
FY12/18 | FY12/19 | FY12/20 | ||||||||||||||||||||||
(million dollars) | Operating Profit | AWS | International | North America | ||||||||||||||||||||
8,000 | ||||||||||||||||||||||||
7,000 | ||||||||||||||||||||||||
6,000 | ||||||||||||||||||||||||
5,000 | ||||||||||||||||||||||||
4,000 | ||||||||||||||||||||||||
3,000 | ||||||||||||||||||||||||
2,000 | ||||||||||||||||||||||||
2,077 | 2,177 | 2,223 | 2,121 | 2,261 | 2,596 | 3,075 | 3,357 | 3,535 | 3,564 | |||||||||||||||
1,000 | 1,400 | 1,642 | ||||||||||||||||||||||
0 | ||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |||||||||||||
(1,000) | ||||||||||||||||||||||||
(2,000) | ||||||||||||||||||||||||
Source:https://ir.aboutamazon.com/quarterly-results | 32 |
FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 |
Source:https://www.m2ri.jp/release/detail.html?id=434
33
Market Environment: Size of Japanese Cloud Service Market
The three leading cloud companies (AWS, Microsoft Azure, and GCP) continue to see growth in service usage. AWS remains the leader in the PaaS and IaaS markets.
In the IaaS market, which offers solutions often used by companies migrating from an on-premises environment, AWS leads with a usage rate of 51.9% (+4.8% YoY), and over half of the Japanese companies adopting
an IaaS solution opt for AWS.
[Configuration policy for new systems] | [Service usage rates for AWS, Microsoft Azure, and GCP] |
Usage rate | PaaS usage rate |
Over 1,000 people (n=1,502)
100-999 people (n=1,482)
1-99 people (n=2,915)
Usage rate | IaaS usage rate | |
2019 | 2020 | 2019 | 2020 | |||||||||||||
Mainly on-premises cloud | ||||||||||||||||
Mainly public cloud | Mainly private cloud | Mainly hybrid cloud | Mainly non-cloud environment | |||||||||||||
Source:https://www.m2ri.jp/release/detail.html?id=434
34
Our Business Model
Business Model
Provide complete services for cloud journey, from Cloud strategy consultation to actual deployment and
migration as well as post-migration operating services.
Customer
Assessment
Establishing | Cloud Infrastructure |
implementation | Design & deployment |
plan |
Cloud Operation
Provide complete service toward all cloud journey phases
Our service
Resale
Cloud Integration
MSP・SRE*
"Flow" business | "Stock" business |
*SRE: Site Reliability Engineering. A concept advocated by Google Inc. in 2003 to operate an expanding large-scale IT system. The mission is to improve performance, availability, elasticity, security, etc. in order to secure the reliability of the IT system and build a system that can be continuously improved by introducing various tools and strengthening collaboration with customers.
36
Core Service Overview
Providing variety of services around AWS.
Cloud Integration
Providing service to create Cloud migration strategy for migrating the system, which has been managed in on-premise environment, to cloud environment, as well as Infrastructure design, Establishment/deployment support services. We provide optimum design for customers from setting business objectives using Cloud, to actual migration, operation planning after cloud implementation.
Re-sale
We are reselling AWS centered cloud services to our customers as a solution which we add our unique values.
Especially, we develop and provide our unique application, "Cloud Automator", a service that automates AWS operations, to our customers. By combining these solutions with AWS, we maximize the benefit of AWS to our customers.
MSP(Managed Service Provider)
We provide 24x7 operation services, such as system performance monitoring, failure monitoring, recovery operation in the event of a failure, back-up operation for quick recovery from the failure, and security patches application for AWS infrastructure to middleware level.
37
Difference between SRE and Conventional MSP
For specific large customers, we set up a dedicated team to support customer needs which cannot be handled by the
standard MSP service and provide service from system construction to operation and maintenance.
Cloud Integration
- Mainly provide support for migrating from on-premise environments to the Cloud, regardless of new/existing customers.
- After completing the cloud migration, our MSP will take after the customer, when customer ask us to provide operation/maintenance services.
SRE
CI MSP
MSP
The standard operation service specialized for the Cloud environment, which we have been providing to customers.
38
Cloud Migration Lifetime
In the process from initial implementation(migration) to stable operation, the importance of SRE, which supports customers unique needs, is increasing.
Implementation
CI
Growth period
Large-scale customer who needs individual support
SRE
Small to mid scale customer using standard operation service
Maturity / stable operation
MSP
Standardized operation service
39
Business Model Diagram
Amazon Web Services, Inc.
AWS purchase
Resale | ||
Cloud Integration | AWS | Cloud Automator |
Resale | ||
AWS Implementation support | AWS value-add resale | |
(Affiliated company)
Sky365 Co., Ltd.
Subcontracting
MSP・SRE
(Managed Service)
Maintenance/support service
Enterprise customers
40
Our Strength
Unique Strengths :1
Advanced
Select
Registered
AWS Certified Top Tier Partner
What is a Premier Consulting Partner?
- Top-tierpartnercertified among tens of thousands of AWS partners
- 126 partners worldwide, only 10 companiescertified in Japan
- Serverworks has retained certification
consistently since 2014
- Iret, Inc. , ITOCHU Techno-Solutions Corporation, SCSK Corporation, NTT Data Corporation, Classmethod, Inc. , Serverworks Co., Ltd., TIS Inc. , NEC Corporation, Nomura Research Institute, Ltd. , Fuji Soft Inc.
* As of June, 2020 | 42 |
Unique Strengths 2 | Advanced Technical Capabilities | * As of March 31, 2021 |
Employing many highly skilled engineers with advanced expertise backed by AWS certifications
(people) | (people) | ||
50 | - Solution Architect Professional | 34 | - Security Specialty |
29 | - DevOps Engineer Professional | 13 | - Big Data Specialty |
84 | - Solution Architect Associate | 23 | - Advanced Networking Specialty |
51 | - DeveloperAssociate | 8 | - Machine Learning Specialty |
59 | - SysOps Associate | 20 | - Alexa Skill Builder Specialty |
13 | - Database Specialty | ||
7 | - Data Analytics Specialty |
43
Unique Strengths 2 Advanced Technical Capabilities
Receive various certifications from AWS for our high technical skills and our achievement in specific fields.
AWS Managed Service (MSP) Partner
The partner who can provide total AWS cloud services from planning/designing to actual building/migrating as well as operation and optimization as a business solution to customers. Since we have received MSP partner certification in 2014 as a 1st partner in Japan, we have been continuously receiving the certification, meeting strict auditing standards released in 2019.
AWS Migration Delivery Partner
The partner who can assist customers at each stage of migrating existing applications to AWS and provide staff, tools and education as part of professional services.
AWS Digital Workplace Competency
A technical certification program for AWS partners with proficient technology and a proven track record of leading customers successful in specialized solution areas. Awarded to partners who have expertise in AWS desktop and application streaming solution projects and have a track record of providing those solutions to customers. We are the 1st partner in Japan to achieve completion of the program.
AWS Well-Architected Partner Program
The partner who can appropriately evaluate customer's AWS | |
architecture by actively using AWS Well-Architected framework | |
backed by in-depth knowledge related to AWS implementation | |
support as well as numerous actual project experiences. | 44 |
Unique Strengths 3 Solid Track Record
Track record of over 10,100 projects for over 890 companies*, mainly medium-sized and large companies.
*As of March 31, 2021
45
Unique Strengths 4 Front Runner advantage
Maintaining and expanding the growth cycle of increasing stock businesses by leveraging our name recognition in the AWS industry as a leading company.
A virtuous cycle has been created in which our business growth is further accelerated by cooperation with AWS.
As AWS, led by a powerful Amazon brand, has grown by
40+% compared to last year, our company recognition
as the highest ranked AWS partner has been as well. This situation leads to create pull-lead(*) for receiving AWS implementation support
project orders and leading to grow our stock businesses.
We publish more than 10 of these cases annually and this creates virtuous cycle that further raises AWS visibility in the enterprise market.
Improve
AWS brand recognition
Publish | Improve |
customer | our company |
case studies | recognition |
Increase in | New |
business | |
Stock | |
creation from | |
business | |
pull-lead | |
* The situation that customers are coming to us, instead of aggressively reaching out to customers from us
46
Unique Strengths 5 Our Original Service "Cloud Automator"
Based on our depth knowledge in AWS constructions and operations, we develop original AWS operation automation service and provide it to our customers.
Contribute to both low-cost & high-quality operations and increase in Cloud Integration project orders.
Feature 2 | ||||||||||
Feature 1 | ||||||||||
(Job Automation feature) | (Configuration review featur | e) | ||||||||
Automatic AWS Config check | ||||||||||
Automate AWS Operation | ||||||||||
Periodically review | ||||||||||
Automate AWS | ||||||||||
essential operations | AWS resources to | |||||||||
such as back-up, | check whether it is | |||||||||
Instance start/stop, | configured based on | |||||||||
etc… | designated rules |
47
Unique Strengths 5 Our Original Service "Cloud Automator"
Examples:
We have a track record | To improve IT governance, | ||
of evolving services and | Implement Cloud | we decided for full | Optimizes costs by |
specifications in | Automator for addressing | adoption of AWS | automatically switching |
response to changes in | automation, | By combination of using | to the DR site by |
AWS as well as user | standardization, | Cloud Automator, it | automatically launches |
demands. We transfer | simplification, efficiency, | enables to achieve both | instances, only when |
our know-how and | and risk elimination of | operation automation and | needed, by using Cloud |
experiences to internal | AWS operations | operation efficiency at the | Automator |
resources | same time |
48
Growth Strategy
Growth Strategy: Winning Large Migration Projects
In Japanese market, more than half of the companies still do not use Cloud. We will continue to accelerate growth by acquiring large-scale cloud migration projects that have not yet been cultivated.
An advisor who has a track record of implementing AWS in the financial field will identify the issues and clarify the items and while providing practical cooperation as necessary, advisor will support the customers to make sure to enjoy the benefits, such as speeding up the businesses as well as mitigation of IT system operation load, based on implementing public cloud.
50
Growth Strategy: Support to Establish New Normal Work Style
Leverage Amazon WorkSpaces, build company-wide telework environment in just 3 weeks
Implement more than 1,000 Amazon WorkSpaces for expanding telework environment
Application
Storage
NTT Smile Energy Inc. Has built a company-wide telework environment in just three weeks by utilizing AWS Client VPN and Amazon WorkSpaces. In addition, the company implemented Amazon Connect to improve call center operations and transformed it to cloud based call center. Operators involved in telephone support operations can now work telework basis.
To expand the telework environment at Yokogawa Electric Corporation, we supported to build 1,400 Amazon WorkSpaces environment. Detailed design started in mid-March 2020, and 1,000 units were built by beginning of April, which was less than a month. After that, gradually built and supported the implementation and 1,400 Amazon WorkSpaces environment were established by mid-May.
51
Growth Strategy: Provide New Services Using Cloud
Build an automatic telephone order dialing system using IVR (Interactive voice response) provided by Amazon Connect
A trial is in progress to automate SHINSEI BANK existing outbound call operations
with Amazon Connect
Amazon Connect starts a call automatically
Only when a customer answers the phone, connected to the operator
Built an automatic telephone order dialing system utilizing Amazon Connect for Pal System Co-op Federation. It greatly contributed to automate the response to support sudden increase of the order calls due to the request to refrain from going out caused by COVID-19 spread.
A trial of Amazon Connect is in progress to improve number of outbound calls and dialogs.
Enabled to reduce the routine burden on operators and create a follow-up system for customers.
52
Caution for forward-looking statements
The materials and information provided in this announcement include so-called"forward-looking statements". These are based on current expectations, projections and risky assumptions, and include uncertainties that could result in different result from these statements.
These risks and uncertainties include general industry and market conditions, and general domestic and international economic conditions such as interest rate and currency exchange fluctuations.
In the future, even if there is a new information and/or a future event, we are not obligated to update or modify the "forecast information" including in this announcement.
53
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Disclaimer
Serverworks Co. Ltd. published this content on 27 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 April 2021 07:04:04 UTC.