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ISM Article

The Shift to Office Market

10 Aug, 2007 By: Tetsuo Kubo imageSource

The Shift to Office Market

In June 2007, Seiko Epson Corporation announced two new A3 color page printer
models along with software applications, for more effective print management for
the professional office market. Mr. Oguchi, General Manager of the Information
Equipment Division of Seiko Epson, stated that their policy is to shift from the
end user/consumer market to the office market where higher and more stable
income is expected.

The new products are to help with corporate internal controls and to gain a
more secure advantage in printing areas for the office sector. They include the
print management software of Offirio’s SynergyWare Print Director and
SynergyWare Authentication Proxy that realizes an authentication printing system
integrating with an active directory, and two Offirio color page printers that
provide “distributed deployment” and “central control” in combination with the
Print Director. The new printers are LP-S6000 with 24/30 color/BW ppm print
speed and LP-S5000 with 8/35.8 color/BW that provides the best monochrome
printing speed.

In addition, in August 2007, Seiko Sales Japan Corp. will start selling the
“Finger Vein Biometrics Equipment” (open price) to realize biometrics printing,
and a system for authentication printing under a thin-client environment. With
this move, the company plans to make a “V-shape” recovery of their color page
printer sales, which have declined since 2003, in hopes of enlarging their
market to include large corporations and central government offices, as well as
expanding their categorical scope within the industry.

Mr. Hirano, Executive Director and President Elect of Seiko Sales Japan
Corp., stated 170,000 total page printers and 62,000 color page printers,
including 32,000 units of the two new models, is their domestic sales target
this year.

Mr. Oguchi (Seiko Epson Corp.) stated that their policy was to reverse the
weight on their consumer business by increasing their B-to-B (business to
business) in their global Information Equipment business, currently from 45% to
50% in 2008,  and 55% in 2010.  In the domestic market, Epson Sales has been
holding up (1) distributed deployment for more effective usage; (2) security
measures in response to each application; (3) printers that can be installed on
desktops; (4) central asset management for cost reduction as clinching moves.

Software Market 2X as Big as Hardware

Electronics and Information Technology Industries Association (JEITA)
announced their market research results on software and solutions services for
Japan for 2006 overall.

The market size became 5.4 trillion Japanese Yen (increased 1% from the
previous year).  This is about two times bigger than the total hardware (server,
workstation, PC) market size of 2.4 trillion Japanese Yen.

The breakdown is 2.5 trillion yen (decreased 6%) for SI development
(consulting, system integration), 769 million yen (increased 12%) for software
(application packages, middleware) and 2.2 trillion yen (increased 7%) for
outsourcing and other services (hardware and software maintenance, other).

They have forecasted the software and solutions services market will reach to
5.5 trillion yen in 2007.

*Ref: Currency exchange rate: Yen 125/$US listed in June OA Life 2007.

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