Horizons widen for cloud computing

Hiraku Iwasaki / Yomiuri Shimbun Staff Writer

Cloud-computing services--which allow users to send e-mail, store documents, conduct business transactions and perform various other functions via Internet-based networks--are becoming increasingly popular with individuals and companies.

NEC Corp. and Fujitsu Ltd. started offering servers for cloud-computing use this fiscal year, and are hoping to ramp up their provision of such services to corporate clients and local governments.

Cloud-computing involves individuals and companies storing data and software on third-party servers, where it can be accessed online and downloaded by designated users.

The technology is cost-efficient because it eliminates the need for users to have their own high-performance servers and other hardware.

As confidence in the security of cloud-computing technology improves, so is its popularity likely to increase.

Companies and local governments have in the past expressed anxiety about storing sensitive information on external servers.

But NEC and other info-tech companies have successfully marketed their cloud-computing services after reinforcing security controls.

NEC's business plans include using cloud-computing technology to manage hotel reservation systems, a venture it will launch in January 2011, centralizing bookings for hotel restaurants and accommodation packages on the Internet.

For a hotel with about 100 rooms, setting up cloud-computing services will cost about 5.4 million yen, with a subsequent monthly fee of about 250,000 yen.

NEC said it might be about 30 percent cheaper for hotels to use cloud-computing services instead of operating in-house systems.

Introducing the system takes about a week--about one-quarter of the time needed to install a system of similar capabilities in a hotel.

NEC plans to roll out cloud-computing services in China from fiscal 2011. The company aims to receive orders from a total of about 2,000 hotels in Japan and China by the end of 2015.

Fujitsu will launch a service in November that will assist local governments conducting safety checks on bridges.

Many local governments need to carry out urgent repairs on age-worn bridges built in the 1960s.

The service will enable government officials to share digital images and other data obtained during a bridge inspection with consulting construction companies, who will be able to promptly examine the images and assess the structure's condition.

Fujitsu said the method is about 30 percent to 40 percent cheaper than having consultants actually visit inspection sites. The firm hopes to receive orders from 300 local governments by the end of fiscal 2013.

According to market research company IDC Japan, the market for commercial cloud-computing services in Japan is predicted to grow to 143.2 billion yen by 2014, or 4.6 times its size in 2009.

Hitachi Ltd. and competitor firms are rushing to improve their technology and related services to capitalize on the field's anticipated rapid growth.