The document provides an overview of the B2B cloud market in Japan from 2012. It discusses the history of cloud computing in Japan and how ownership has shifted to utilization. It also forecasts strong growth in the cloud computing market from 2009 to 2015, especially in SaaS. Several case studies of major Japanese cloud providers like NTT Communications, KDDI, and Softbank are presented to illustrate different cloud service models. Emerging drivers for future cloud growth are identified, including the expansion of mobile cloud services to consumers and the use of cloud platforms to enable new machine-to-machine and "big data" services.

1. Strictly Confidential
Presentation to Cloud Inspire 2012
Overview of B2B Cloud Market in Japan ROA Holdings
Ver.1.0
April 2012
Copyright © 2012 ROA Holdings Inc.
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means —
electronic, mechanical, photocopying, recording, or otherwise — without the permission of ROA Holdings.
This document provides an outline of a presentation and is incomplete without the accompanying oral commentary and discussion.

2. Table of Contents
I. JP Cloud Market Overview
II. Case Study
III. Next Driver
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ROA Holdings Strictly Confidential

3. Cloud Service History in Japan – Layer Trend JP Cloud Market Overview
Cloud computing in Japan is part of ICT outsourcing that started a couple of
years ago, and is constantly advancing.
From Ownership to Utilization Key Observation
Step 1 Step 2 Step 3  In Japan, the first step was
～early 2000 2008 2010
―Storage‖
Ownership
- The first step to cloud computing
was from ownership of all IT
Utilization
Business resources to server housing.
Business Process
Process
 The second step was ―Application
server‖
Application Application
- The second step was from the
ownership to utilization of
application server.
Hardware Hardware
 The third step was ―SaaS‖
- The third step was from the
Server ownership to utilization of software.
Server Room (data center)
Room
Network
Ownership Housing Hosting SaaS/ASP BPO
（Source: NTT Communications, ROA Holdings Analysis） 3 Strictly Confidential

4. More to Public JP Cloud Market Overview
Japanese companies are shifting their mission-critical tasks to cloud and
starting to utilize both public and private service in a hybrid manner.
Hybrid Cloud Usage to Mission-Critical Tasks Key Observation
 The advantage of public cloud
2011～ service goes to mission-critical
Development - The advantage of public cloud is
Mail Environment reasonable usage of IT resources
Development Groupware from anywhere for high quality.
Mail Environment
IT Service to
Groupware Production
Customer  4 elements to utilize public cloud
Control
Data-
for mission-critical
Analysis - Security
- ID integration
- Reliability
- Visualization of cost
Groupware
Development
Mail Data- Environment Data-
Production Analysis IT Service to Production Analysis IT Service to
Control Financial Customer Control Financial Customer
Cost Accounting Customer Cost Accounting Customer
Management Management Management Management
Confidentiality
Scale
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（Source: Nikkei Computer 2011, ROA Holdings Analysis） Strictly Confidential

5. Market Forecast JP Cloud Market Overview
The market size of cloud computing in Japan is estimated as JPY 400 billion in
2009, and will expand to JPY 2.4 trillion by 2015.
Cloud Computing Market Forecast (2009 - 2015) Key Observation
 SaaS is main service
UNIT: 000 Million YEN - Around 60% or more of the market
was SaaS in 2009, and will continue
25000 to be the main service by 2015 with
around 62.5%.
20000
 High CAGR
New IaaS
- By 2015, CAGR will be 30.5%
15000 New PaaS based on the corporate survey
New SaaS asking the expectations of cloud
computing services.
IaaS
10000 - Especially service penetration to IT-
PaaS unfamiliar areas (Gov service,
SaaS Medical service, Education,
5000 Agriculture) will be the driver of the
cloud services.
- Additionally, smart grid platform will
0 lead the service to expand with
2009 2010 2011 2012 2013 2014 2015 government supports.
（Source: MIC 2009, ROA Holdings Analysis） 5 Strictly Confidential

6. Table of Contents
I. JP Cloud Market Overview
II. Case Study
III. Next Driver
6 Strictly Confidential

7. NTT Communications Case Study
NTT Communications’ Biz City is cloud-based, with complete range of virtual
office services as one stop for full layers via virtual networks.
BizCITY Remarks
Name of Service
BizCITY
Virtual Net SaaS Service description
Hosting Mail Storage Security
Desktop Marketing Application
Providing full layer of one stop service for
Cloud Platform various cloud services
Service component
Closed NW The Internet
Platform and VPN network
Customer Location
Office
Virtual
Remote
Remote Start
Access
Communi
cation 2008.7
Player / Role
NTT Com: Platform building, Network
Planning/ Operation/ Provide
Consulting Building
Designing Maintenance SaaS Provider: Salesforce.com, Fuji Film,
NEC Frontier, SCSK, NI+C, etc
Full Layer
Application One Stop
Remark
Platform Not only NTT com’s original services, but
Full Layer & One Stop Service
also various SaaS from partnership can be
Network delivered to clients on the secure platform
（Source: NTT Communications, ROA Holdings Analysis） 7 Strictly Confidential

8. KDDI Case Study
KDDI’S PaaS solution can provide virtual appliance service in which the client
can build systems with necessary IT resources.
KDDI Cloud Server Service (PaaS) Remarks
Template per Biz Logic Name of Service
Cloud Server Service
Service description
Service Module Package A Package B Package C Providing PaaS solution service in which
the client can select functions and build
A B C A B C A B C virtual systems dynamically
NAS Service component
Web iDC, Hardware, Network
Application
Mail Location
Cloud IT Platform
DNS Virtual, iDC (TELEHOUSE)
Virus Check Start
FW/IPS 2009.6
Security
SLB Player / Role
VPN KDDI
OS Remark
Infra
Server Virtual appliance service on this PaaS is that
the client can allocate necessary computer
Internet Network
resources to the system
Co-location
Facility
Electricity
（Source: KDDI, ROA Holdings Analysis） 8 Strictly Confidential

9. Softbank Case Study
Softbank Telecom has launched virtual desktop service to the clients who could
work anywhere, any time, and any device with the same PC.
Softbank White Cloud Desktop Service Remarks
Softbank Name of Service
Customer SB Closed NW Telecom Data Softbank White Cloud Desktop Service
Data Center Center
Service description
Providing the same desktop environment at
anywhere, anytime, any screen
Customer
Office Service component
Virtual Desktop Any device at SB NW
Location
Person
A Person Virtual, Softbank Telecom data center
B Person ・・・
C Start
2010.7
Mobility Player / Role
SBM 3G NW
Softbank Telecom: closed NW and data
The Internet center
Softbank mobile: 3G NW
Remark
Wi-Fi Operation Information Security & backup cost can be reduced by
Service storing all data to iDC
Screen Image
Transfer
（Source: Softbank, ROA Holdings Analysis） 9 Strictly Confidential

10. NTT Docomo – B2C Case Study
NTT Docomo has announced a partnership with Eye-Fi to integrate Docomo’s
personal cloud system and Eye-Fi’s View cloud service.
Docomo’s New Photo-sharing Service with Eye-Fi Remarks
Name of Service
Photo-Sharing Service
Photo Service description
Panel
Providing functions of sending photos to
Otayori Photo Service from user’s digital
camera
Personal Cloud Smart Service component
Service Phone
Tablet, PC, mobile, Wi-Fi network, Personal
cloud platform
Initial Setting
Location
Virtual
Start
Storage Service
SNS/Blog Server 2012.3
Eye-Fi Player / Role
SD Card Eye-Fi View Service
NTT Docomo: photo flame service and cloud
+ PC service
Eye-Fi: automatic transmission service of
Digital Initial Setting photo to other devices
Camera
Remark
NTT Docomo invested 14 million USD in
Eye-Fi to build a strong relationship
（Source: NTT Docomo, ROA Holdings Analysis） 10 Strictly Confidential

11. Table of Contents
I. JP Cloud Market Overview
II. Case Study
III. Next Driver
11 Strictly Confidential

12. B2C Next Driver
The mobile cloud service will expand to B2C , thanks to the increase in a variety
of devices as well as improvements brought by the next generation network.
2012 Mobile B2C Cloud Expectation Remarks
 Changes in the Usage Pattern of
Device Mobile Network Cloud Mobile Cloud
 Mobile Phone - With the full launch of NTT
3G Docomo’s LTE services and the start
of the services by KDDI and SBM,
Until Limited Network the network quality will improve
Feature Phone Quality By so far, B2B and
2011 significantly compared to 2011.
PC have been the
User - After 2012, various devices will
main trend, while the
usage of mobile has support cloud services, and as the
Smart Phone been low usage of contents on various
devices expands, the demand for
integrated management will
Multi Device increase.
Tablet LTE/WiMax/WiFi
- As a result, cloud service will shift
B2C service
Significant from a B2B centered, single device
expands thanks to
After Improvement in variety of devices market towards exclusive B2C
2012 Portable Gaming Device Network Quality and improvements services.
in network quality
Digital Photo Frame
TV
（Source: ROA Holdings Analysis） 12 Strictly Confidential

13. M2M – Concept Next Driver
For establishing smart communities, M2M will be one of major drivers to
generate new services based on cloud platforms.
M2M Cloud Basic Concept Remarks
 Cloud platform
- To provide new services based on
the data analysis coming from M2M
Anti- Disaster Energy Surveill Control sensors, the service providers need
crime reduction saving ance regulation
to go through 3 steps, gather and
analyze data, and provide new
Electricity/Gas services.
Cloud Platform
Cloud Water/Security - New standard platforms are
Service Home appliance required to provide such services at
Local gov low cost.
 Smart meter network
Internet Smart meter - Smart meter network is kind of
network ・Gas meter closed NW for gathering data and
・Water meter providing services.
・Security camera
- It should be based on 3G, LTE, Wi-
・PND
・Electric vehicle Fi, FTTH, WiMAX (WiBro), or on the
・Storage battery combined infra.
・Solar panel
・Home appliance
・Entry phone
・Various sensors
General Households
（Source: ROA Holdings Analysis） 13 Strictly Confidential

14. Big Data – Definition Next Driver
Big Data can be classified as the area relating to personalized service and
statistical data usage, providing new business opportunities for cloud players.
Usage of Big Data Remarks
 For Personalized Service
- Amazon’s recommendation function
or NTT Docomo’s i-concier would be
Anti- Disaster Energy Surveill Control classified to this area.
crime reduction saving ance regulation
- Cloud providers will need to analyze
Profile Data Profile Data log data as well to find action
pattern.
Cloud Platform
Usage Data - Security issues need to be solved.
Profile Data Profile Data
 For Statistical Data
Big Data - All data must be anonymous to
Usage Data Usage Data analyze the action pattern.
- Security issues need to be solved.
For Personalized Service For Statistical Data
Utilizing user data to recommend Utilizing user data to retrieve
best appropriate products or attribute statistical information
services anonymously
（Source: Nikkei Communications 2012, ROA Holdings Analysis） 14 Strictly Confidential

15. Thank You
For more Information, Please feel free to contact us.
ROA Holdings, Inc
k-so@roaholdings.com
Japan HQ - http://japan.roaholdings.com/index.html
Copyright © 2012 ROA Holdings Inc.
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means -
electronic, mechanical, photocopying, recording, or otherwise — without the permission of ROA Holdings.
This document provides an outline of a presentation and is incomplete without the accompanying oral commentary and discussion.
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