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News from NET and COM '99
















  • Most Japanese Businesses Equipped with LANs: Nikkei Market Access
  • February 16, 1999 (TOKYO) — The rate of local area network (LAN) deployment among Japanese businesses has reached 93.8 percent, according to a survey conducted by Nikkei Market Access.
    The survey, which was conducted in November and December 1998, was based on questionnaires sent to 3,300 companies.

    Corporate network budgets in 1999, including circuit-related funding for LAN configurations, are projected to decline by 2.1 percent on a year-on-year basis.

    Large businesses with more than 1,000 employees had very high rates of enterprise-wide LANs.

    The rate of LAN implementation for midsize businesses with 100 to 500 employees increased to 87.7 percent, or up 12.3 percentage points compared with the previous survey conducted in November 1997.

    Examining the network budgets for 1999, LAN maintenance-related budgets have been increasing, while LAN configuration-related funding levels are declining.

    Operating costs, such as equipment rental costs as well as personnel costs, are estimated to increase by 4.9 percent in fiscal 1999. In fiscal 1998, such costs rose only 1.1 percent on a year-on-year basis.

    Meanwhile, circuit usage-related budgets, which include such charges as contracts and usage fees for circuits; and communications equipment-related budgets, which include developments costs of routers and hubs, both increased by 14 percent from last fiscal year.

    Businesses that expect to cut 1999 network-related budgets were asked for reasons (multiple responses were accepted).

    Only 20 percent of all businesses surveyed said that their budget cuts were due to a reduced in-house information infrastructure budget. Most of the remaining businesses said that their infrastructure construction was almost completed.

    “Enhancement of the network environment has almost been completed” was cited by 44 percent; “office automation based on introduction of PCs has almost been completed” was cited by 35 percent; and “information sharing/productivity improvement projects have almost been completed” was cited by 35 percent, according to the survey.

    Most costs of operations are increasing. Only circuit usage fees are declining. This is due to the accelerating moves to migrate from ISDN services to more reasonably priced leased-line services, the survey said.

    Businesses that had been using the INS-Net 64, an ISDN service for LAN-LAN connectivity offered by Nippon Telegraph and Telephone Corp., accounted for 48.6 percent in the previous survey (as of October 1997). However, that rate declined to as low as 36.0 percent (as of November 1998), and it is projected to decline to 33.3 percent in November 1999.

    Nikkei Market Access conducted the survey in November and December 1998. Questionnaires were distributed to the 2,000 largest listed companies (in terms of sales) as well as to the 600 largest unlisted companies and the 1,700 biggest foreign companies in Japan (with over 25 percent foreign ownership). Valid responses were received from 838 companies.

    (Nikkei Market Access)



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