Integrated

Report

2022

Fiscal Year Ended March 31, 2022

ー表現

Five-Decade Journey of CTC

On April 1, 2022, ITOCHU Techno-Solutions Corporation (CTC) celebrated the 50th anniversary of its founding.

In this section, we look back at the past five decades, which we have walked together with our stakeholders, and discuss the next step forward on our journey.

1970s

Stable growth

Focus on energy and resource conservation

1980s

Japan's bubble economy Transition to a service-driven industry structure

1970

First photochemical smog confirmed in Japan

1980

Release of ethernet specifications

1971

Establishment of the Ministry of the

1982

Introduction of telephone cards and public

Environment

telephones using cards

1973

Introduction of the floating exchange

rate system

Development of a robust ecosystem with vendors by taking responsibility in the supply of technologies

1972

Establishment of C. ITOH Data Systems

Contribution to the safety

Co., Ltd.

and rapid development of

Development of a nationwide service network

along with the supply of overseas products to

society with sophisticated

Japanese companies

1983

computing technologies

1958

Conclusion of a sales agent contract

with Sun Microsystems, acquiring

Establishment of Tokyo Electronic

exclusive distributor rights for Sun

Computing Service Co., Ltd.

Workstations, which led CTC to

(later CRC Solutions Corp.)

become the world's largest reseller

Start of computer rental services using

of Sun Workstations in 1995

a small staff, and receipt of orders for

Evolution of sophisticated simulation technologies

coordinate transformation devices nec-

essary for aerial photogrammetry

1975

Receipt of an award for help with simula-

tions for N rocket launches of the National

1964

Space Development Agency of Japan

Contribution to government

projects through contracts for

Construction of data utilization platforms

engineering calculations for

the Tokaido Shinkansen and

for an IT infrastructure-based society

queue calculation for ticket

1971

1980

gates at Olympic event sites;

Creation of a thinktank division;

Introduction of the first CRAY-1,

development of software for

structural analysis of nuclear

transformation of the computa-

the world's fastest supercom-

power facilities, bridges, sky-

tion center into a solution center

puter at the time, for commercial

scrapers, roads, and ships

use in Japan

CTC's predecessors were commercializing scientific computation services when computers were still in their infancy. Undertakings over the years have included contributing to government projects with analytical technologies and computer simulation technologies to design the elevated tracks for the Tokaido Shinkansen, which started service in 1964. We also proceeded to acquire technologies in response to social issues, identify unmet needs, and thereby create markets. Examples of such efforts include the design of anti- pollution measures and skyscraper structures and the analysis of weather patterns, earthquakes, and tsunamis. This proactive approach can be traced back to our early days.

It is now taken for granted that government documents are printed by means of computers. This is because computers were introduced at municipal government agencies across Japan over the 1960s and 1970s. CTC supported the spread of computers by helping to digitize names and addresses, leading eventually to the development and supply of Japanese input systems (which added the functionality needed to type Japanese characters to input systems developed in the United States) as well as dedicated keyboards for use with the systems. Moreover, we established some

50 bases to support municipal government agencies in the input of such data, giving rise to CTC's reputation for supply maintenance and repair services after products were sold.

1990s

2000s

Collapse of the bubble economy

Emergence of the internet

IT revolution and dot-com bubble

Development of interpersonal

communities

1990 Collapse of the bubble economy in Japan

2001 Start of NTT DOCOMO's FOMA service

1993 Approval of commercial internet use by the

2006 Launch of Amazon Web Services

Ministry of Posts and Telecommunications

2008 Release of the iPhone in Japan and

1994 Adoption of the United Nations Framework

the financial crisis of 2008

Convention on Climate Change

1995 Release of Microsoft Windows 95

2006 Management integration

System integration by the

Acquisition and evolution of

Reinforcement of service frameworks to develop a comprehensive

Cloud computing technology

network technologies

lineup of IT services covering all layers of technology

and venturing into balancing

scalability / security

1992

1995

1999

Start of sales of the net-

Full-fledged entry into the inter-

Support for early mobile

2008

work products of Cisco

net business, with the start of

internet services for the

Commencement of R&D of

Cloud technologies; start of

Systems, Inc., and the

supply of products of Netscape

telecom careers

database products of

Communications Corporation

Cloud service initiatives begin-

Oracle Corporation

ning with the launch of the

amid the internet boom

TechnoCUVIC public Cloud ser-

vice utilizing CTC's data centers

1990

2005

Establishment of ITOCHU Technology, Inc.; creation of an R&D

Establishment of the

base in the United States to research market trends, advanced

Technical Solution Center,

technologies, services, and products; becoming a CTC subsidiary in

with a capability in compre-

2012; focus on support of startup companies in their business

hensive technology

expansion in Japan and approach to Japanese companies

verification

Exploration of climate change- and renewable energy-related technologies

1992

1996

2004

Receipt of Japan's 34th com-

Launch of Weather Eye,

Entry into wind and solar

mercial meteorological fore-

Japan's first weather infor-

power businesses by utiliz-

cast license and entry into

mation website, using a

ing meteorological forecast

the weather forecast

proprietary meteorological

expertise; acquisition of a

business

forecast model

patent for wind turbine loca-

tion selection methodology

1988

1995

Opening of the Yokohama

Opening of the Kobe

Computer Center prior to

Computer Center

the era of open systems

In 1983, when the idea of networks was still new, CTC turned its attention to the Sun (Stanford University Network) Workstation developed by Stanford University. By writing UNIX instruction manuals for the Sun Workstation, our engineers helped to spread the use of this system in industrial and office settings. It was also around this time that we took part in an experiment to use the Sun Workstation in the telecommunications field. Later, in 1992, we entered into the network system field by concluding a sales agreement with Cisco Systems, Inc., before arranging a similar agreement with Netscape Communications Corporation in 1995, at the outset of the internet era. When the prevalence of personal computers began to grow rapidly, we undertook the verification of Intel

architecture and Windows operating systems, leading us to merge existing technologies and evolve into a multi-vendor that offered the products of numerous vendors.

The improving performance of microprocessors gave rise to a conception of virtual machines in which one computer would be shared among multiple users, a concept that became a reality for UNIX and Windows systems in the 2000s. CTC responded to this trend by becoming the first global system integrator to conclude a sales contract with VMware, Inc., in 2008. This relationship encompassed Cloud services, prompting us to launch our TechnoCUVIC proprietary Cloud services in 2008, before Amazon Web Services became a staple in Japan. Our services continue to evolve even today.

ITOCHU Techno-Solutions Corporation Integrated Report 2022 02

Five-Decade Journey of CTC

2010s

Advancement of AI and digitalization Global transition toward sharing economies

2011 Great East Japan Earthquake

2015 Introduction of the United Nations Sustainable Development Goals Adoption of the Paris Agreement at the United Nations Climate Change Conference

2016 Introduction of the personal identification number system in Japan 2017 Announcement of comprehensive 5G verification tests by the

Ministry of Internal Affairs and Communications

Creation of global structures in Asia

2013

Acquisition of two IT companies with broad customer bases and diverse technological capabilities in Singapore and Malaysia, to grow global operations and enhance global support for customers

2017

Acquisition of an IT company in Thailand to further strengthen operations in Southeast Asia

Development of new businesses through co-creative innovation

2014

Opening of the CTC Security

Operations Center and launch of

managed security services

Exploration of renewable

energy-related technologies

2011

2013

Launch of the E-PLSM Cloud service

Receipt of the New Energy

to support smart communities and

Foundation Chairman Award in the

contribute to the realization of a

New Energy Award program

low-carbon,energy-efficient society

together with Tohoku Electric

Power Co., Inc., for introducing a

wind power generation output pre-

diction system into power grid

management processes

2017

Establishment of the Institute of Open Innovation Research "MIRAI" to research and develop advanced technologies and create new business models, and opening of the DEJIMA dedicated space for innovation in Tokyo in October 2017, to respond to demand from customers seeking to develop new businesses

Anytime a turning point was reached with regard to IT, CTC was quick to respond together with customers. Since our founding, we have been driven continually by a sense of curiosity with regard to constantly evolving technologies, as well as a pioneering spirit that inspires us to combine technologies to contribute to resolving social issues. This outlook is imprinted in the very DNA of CTC.

When searching for ways that CTC can contribute to the future, one option we have identified is to provide infrastructure that allows for the exhaustive use of Cloud-native technologies. Virtual machines and the associated virtualization technologies have become commonplace, but these technologies emerged originally with the goal of helping use the finite resource that is a computer in

the most efficient way possible. Installing multiple operating systems on a single computer is more efficient than giving everyone their own high-spec computer. These technologies are based on the principle of sharing resources to boost efficiency. Cloud-native environments allow users to take advantage of the services they need only when they need them, meaning that services can be provided in smaller increments. This approach is significantly more efficient and affordable than assigning everyone a virtual machine that includes both an operating system and applications. This approach also allows for a massive increase in the number of users sharing a single system.

03 ITOCHU Techno-Solutions Corporation Integrated Report 2022

Our journey of taking on new challenges will continue over the next five decades

2020s

Resolution of issues pertaining to the environment, globalization, population aging, and birthrate declines through society-wideco-creation

2020 Global COVID-19 pandemic

Popularization of teleworking and remote meetings

2021 Announcement at the United Nations Climate Change Conference of a goal of cutting greenhouse gas emissions by 46% from the fiscal 2013 level by fiscal 2030

Semiconductor shortages sparked by lockdowns in China

2022 Rising energy prices due to Russia's invasion of Ukraine

2019

Acquisition of two IT companies in Indonesia to

install system integration structures that

comprehensively encompass the ASEAN

2021

region, which is expected to see rapid growth in

Enhancement of the "OneCUVIC" Cloud service; collaboration

the IT industry

with IBM Japan, Ltd., to improve flexibility and security in the

­service application field

2022

Start of the provision of local 5G verifica-

tion testing infrastructure

2018

Opening of a dedicated space in Tokyo and

2021

Aichi Prefecture as part of initiatives to expe-

Establishment of the Business Innovation & Digital

dite development processes and achieve flexible

Transformation; creation of new business models together with

and agile development, giving rise to CTC's

customers, while supporting their digital transformation by utiliz-

reputation for using agile development to

ing DX and open innovation business development insight

respond to the needs of customers seeking

timely releases of applications

2021

Commencement of the verification of aggregation business

encompassing the prediction of generation volumes for solar

Cultivation of human resources to support the future

power, wind power, and other forms of renewable energy and

supply to business operators

2019

Establishment of the ITOCHU Techno-Solutions Future Foundation

as one facet of efforts to develop human resources to shape the

2021

future of IT and contribute to society through business activities

Conclusion of a partnership agreement with data center

­business operators to evolve data center businesses

If society comes to trust Cloud-native environments, it could create a new use for cryptocurrency as well as for the conventional currencies that reflect the nation's value. Moreover, a sufficient reduction in the costs of using such infrastructure would conceivably make these systems more accessible to people who currently lack access to IT, thereby helping to reduce the digital divide. Accordingly, CTC believes that the society of the future will come to be defined by words such as "sharing economies," "barrier-free," and "universal."

If Cloud-native technologies are utilized in the true sense, this is expected to expand the number of people with access to IT as well

as the number of services provided on a segment basis. This situation will create a greater need for environments that guarantee user safety and peace of mind. Thus, it will be vital for CTC to continually monitor all of the services it provides to supply maintenance and improvement functions when necessary.

In the future, therefore, we expect that CTC will need to offer observability services that allow for the monitoring of entire environments while providing the IT infrastructure that supports soci- ety. This is how CTC will evolve in its journey to respond to the needs of society.

ITOCHU Techno-Solutions Corporation Integrated Report 2022 04

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Itochu Techno-Solutions Corporation published this content on 16 September 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 September 2022 09:29:01 UTC.