Asia Express - Computing
NEC to Spend US$1.2 Bln in Developing Cloud Computing, Growing Overseas Business
October 15, 2010
NEC announced on October 13, 2010 that the company plans to inject 100 billion Yen (US$1.2 billion, US$1=81.2 Yen) in cloud computing business and overseas IT service expansion from now to March 2013, according to the Wall Street Journal. It is reported that NEC believes cloud computing and overseas businesses are the growth drivers for the company. It is projected that NEC will establish data centers for cloud computing in China, Asia Pacific, Europe, the Middle East, Africa, North America, and Japan by the next fiscal year.

In fiscal year 2009, NEC's revenues generated from its IT service sector arrived at 866.3 billion Yen (US$10.7 billion), but overseas IT service operations accounted for less than 10%. NEC expects that by March 2013, the company's IT service will be able to generate 1.1 trillion Yen (US$13.5 billion) of revenues, with overseas operation taking up approximately 15% of the IT revenues, according to the same source.