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Company Brief
NEC
Copyright 2021, Faulkner Information Services. All Rights Reserved.
Docid: 00014703
Publication Date: 2101
Report Type: VENDOR
Preview
NEC is a Japanese conglomerate that manufactures computer systems, networking
components, semiconductors, application software, mobile platforms, and display
systems, among other products. The company has almost 113,000 employees
(2020) and operates 300 group companies, worldwide. NEC organizes its operations into Public
Solutions, Public Infrastructure,
Enterprise, Global, System Platform, and Network Services business units. This brief examines
NEC in greater detail.
Report Contents:
Fast Facts
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Name: NEC
Headquarters
5-7-1, Shiba, Minato
Tokyo 108-8001, Japan
+81-3-3454-1111
Fax: +81-3-3798-1510
Web:
http://www.nec.com/
Type of Vendor:
Telecom Equipment, IT, Electronics, Appliances
Employees (including subsidiaries):
112,638 (2020)
Founded:
1899 (Nippon Electric Company)
Service Areas: Worldwide
Stock Symbol: 6701 (Tokyo Stock Exchange)
Description
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NEC is a Japanese IT products and services provider that focuses on
orchestrating a brighter world
. This Tokyo-based, multi-national conglomerate
manufactures computer systems, network equipment, semiconductors, application
software, mobile platforms, and display systems, among other types of products.
The company has nearly 113,000 employees across 300 group companies (2020).
NEC seeks to advance
social infrastructure by leveraging ICT (information and communications
technology) across five business models, as listed in Table 1.
Business | Description |
---|---|
Public Solutions Business |
Businesses involving regional sales functions and regional government entities in Japan |
Public Infrastructure Business |
Businesses involving government organizations and enterprises supporting |
Enterprise Business |
IT solutions in manufacturing, retail and services, and finance in the |
Global Business | Biometric solutions, software services for service providers, and energy storage solutions |
System Platform |
Terminals, network and computer equipment, software products, and other products for business, as well as maintenance services |
Network Services Business | Network control platform systems and operating services for operations management, along with equipment for network implementation |
NEC also operates separate regional companies such
as NEC Corporation of America, NEC Europe, NEC Asia Pacific, NEC Latin America,
and NEC (China).
Strategy
NEC aims for sustained growth for society and business through efforts to
increase its corporate value, practice the "NEC Way," and bring satisfaction to
all stakeholders, including investors, customers, communities, and employees.
The company’s strategy is to be a leading global company that "leverages the power of
innovation to realize an information society." The company focuses on "Orchestrating a brighter
world" that is "committed to creating social value"; offering "Solutions
for Society"; and utilizing ICT (information and communications technology).
Individual business strategies include:
- Public Solutions – Provide IT and network systems for local
governments and medical institutions, and also oversee local branches
across Japan to develop business with close ties to each region. - Public Infrastructure Business – Provide social
infrastructure that allows for everyone to have a safe and comfortable
lifestyle, in the form of large-scale mission critical systems and
network systems for governments, governmental agencies, local
governments, broadcasting stations, and power companies. - Enterprise Business – Develop cutting-edge technology and promote
co-creation with customers in order to connect people, goods, and processes,
reaching across the boundaries between enterprises and industries to create
new value across the entire value chain. - Global Business – Utilize cutting-edge technology such as AI and
IoT in order to contribute to realizing a safe, secure, efficient, and equal
society, as well as for solving social issues. - System Platform Business – Establish platforms
utilizing NEC strengths such as AI (artificial intelligence), IoT (Internet
of Things) image analysis, and cybersecurity, and contribute to solving
customers’ issues. - Network Services Business – Leverage the network strengths and
capabilities cultivated in the telecom carrier market across to other
industry sectors, including service providers, manufacturers, distribution
and service industries, and government agencies.
History
NEC has its roots in the Nippon Electric Company,
which was established in 1899 as part of a joint venture between a group of
Japanese investors and Western Electric. Key moments in the company’s history
include:
- 1899 –
Is founded as an importer of telephone equipment. - 1925 – Sees Western Electric relinquish its stake.
- 1949 – Offers its first IPO.
- 1963 –
Establishes Nippon Electric New York, which is now known as NEC Corporation
of America. - 1983 –
Is renamed as “NEC.” - 1995 – Acquires a 20% stake in Packard Bell, later merging the majority of its PC
business unit with it to form “Packard Bell NEC.” This unit is
ultimately dropped. - 2000 – Begins a restructuring initiative whereby it
is divided into several
self-governed units. - 2001 – Spins off Eulix Networks to sell DeltaX switches.
- 2002 –
Spins off NEC Electronics. - 2003 – Helps establish the CE Linux Forum.
- 2004 – Introduces a facial-recognition algorithm to verify a person’s identity
regardless of pose or background quality. - 2005 –
Files a European Commission complaint against QUALCOMM over alleged
anti-competitive conduct in the licensing of patents for 3G mobile
technology. - 2006 – Sells its Packard Bell subsidiary.
- 2007 –
Merges the NES Solutions Group with the NEC Software Development Group to
form Systems Integration and Software Development. - 2009 –
Consolidates NEC Corporation of America, NEC Unified Solutions, and NEC Infrontia as NEC Corporation of America. - 2010 –
Announces a streamlined organizational structure that includes segments for
IT Services, Platforms, Carrier Networks, Social Infrastructure, and
Personal Solutions. - 2011 –
Establishes a joint venture, with Lenovo, to create PCs. - 2012 –
Announces plans to lay off approximately 10,000 employees worldwide. - 2013 – Appoints Shinsuke Takahashi as President and CEO, NEC Corporation of
America. - 2014 –
Acquires A123 Energy Solutions for $100 million to expand its smart energy business’ energy
storage capability. - 2015 – Unveils its new
“Orchestrating a
brand
Brighter World”
statement. - 2016 – Announces that Takashi Niino will take over as President and
CEO, and that Nobuhiro Endo will become company Chairman, both effective in
April … Establishes its “NEC the WISE” brand for AI (artificial
intelligence) technology. - 2017 – Announces plans to revise its business segments
in 2018, including Public (Public Solutions and Public Infrastructure);
Enterprise; Telecom Carrier; System Platform; and Other (Global, System
Integration, Services, Engineering, and all other areas of business) …
Also merges Corporate Sales and Sales Operations in Japan with its Public
unit, and transfers its financial institutions business to the Enterprise
unit. - 2018 – Reveals plans to acquire IT services firm
Northgate Public Services … Reveals plans to streamline its workforce by
3,000 to improve its profit structure. - 2019 – Acquires KMD Holding at a $1.22 billion
investment … Announces a new organizational structure that includes the
Public, Enterprise, Network Services, System Platform, and Global segments. - 2020 – Works with Fujitsu and NTT DOCOMO to establish carrier
aggregation using 5G bands in a multi-vendor RAN (radio access network). - 2021 – Sees Northgate Public Services enter into an agreement to
purchase Charter Systems.
Key Executives
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NEC’s current executive structure includes:
President and CEO: Takashi Niino
Chairman:
Nobuhiro Endo
Chiefs include:
- CFO: Takayuki Morita
- CDO:
Chikara Ishii - CTO:
Motoo Nishihara - CIO and CISO:
Hiroshi Kodama - CHRO: Hajime Matsukura
- CMO: Makoto Enomoto
- CLCO: Shinobu Obata
- CSCO: Shigeki Shimizu
Group Presidents include:
- Global: Akihiko Kumagai
- System Platform:
Tomoyasu Nishimura - Public Infrastructure:
Noritaka Taguma - Network Services: Atsuo Kawamura
- Public Solutions: Chikara Nakamata
- Enterprise:
Kazuhiro Sakai
Major Products
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NEC tends to focus on offering computers, data storage options, embedded
systems, fiber optic devices, integrated IT infrastructure, network products,
and software, as detailed in Table 2.
Product / Service Type | Major Products and Services |
---|---|
Computer | Servers, business and industrial computers, thin client solutions |
Data Storage | SAN, tape-based, and scale-out grid storage solutions |
Embedded Systems | EMI suppression and design for power integrity, IC package, and LSI |
Integrated IT Infrastructure | Various solution platforms |
Network Products | Solutions for SDN/NFV, traffic management, operation and management, mobile backhaul "PASOLINK," small cells, submarine systems, converged packet optical transport, backbone DWDM systems, metro WDM systems, packet transport, digital network transformation, UC, and vEPC |
Software |
IoT platform, BC/DR "EXPRESSCLUSTER X," file-server management, InfoCage Unauthorized Connection Blocker, ERP, integrated administration software, PLM "Obbligato," SaaS, "WebOTX" service execution, software OEM products, "UNIVERGE" UCC, and "InfoCage SiteShell" Web application firewall |
Unified Communications |
UC solutions, tools, and collaboration, conferencing, and messaging products for seamless communications. |
Major Competitors
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NEC has many different competitors, both domestic
and overseas, ranging from large, multi-national corporations to small,
rapidly-growing, specialized companies. These include:
- Cisco Systems: http://www.cisco.com/
- Dell Technologies:
https://www.delltechnologies.com/en-us/index.htm - Fujitsu: http://www.fujitsu.com/
- Hewlett Packard Enterprise:
http://www.hpe.com/ - Hitachi: http://www.hitachi.com/
- IBM: http://www.ibm.com/
- Toshiba: http://www.toshiba.com
Recent Activity
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NEC’s past-year activity has included:
- January 2021 – Supports the 100Gbps Palau Cable 2 submarine cable
… Sees Northgate Public Services enter into an agreement to purchase
Charter Systems. - December 2020 – Collaborates with the government of Bihar, India
to develop preventative healthcare technology … Completes a flagship
optical submarine cable system to connect Chennai, India and the Anaman &
Nicobar Islands … Collaborates with Osaka Unviersity’s Cybermedia Center
to introduce a cloud-linked HPC and HPDA supercomputer system …
Establishes an Open RAN laboratory in India. - November – Launches Open RAN Center of Excellence in London …
Transfers and leases housing at the Sagamihara Plant in Kanagawa, Japan, to
Hulic … Builds a "confidential" computing system that employs Intel SGX
technology and the Fortanix Confidential Computing Enclave Manager. - October – Acquires Swiss financial software company Avaloq Group.
- September – With Fujitsu and NTT DOCOMO, announces carrier
aggregation using 5G frequency bands in a multi-vendor RAN (radio access
network) … Partners with OBAYASHI, Japan Industrial Partners, Japan
Investment Advisor, ITOCHU Techno-Solutions, and AOI Fund 1 to establish the
BIRD INITIATIVE for business innovation powered by R&D. - August – Sees Bangsoft enter into an agreement to acquire
software firm Concent. - July – Teams with Toshiba and other companies to establish R&D
activity with the Global Quantum Cryptography Communications Network …
Collaborates with Realeyes to develop and distribute emotion analysis
technology … Appoints Ikuo Matsuhashi as Corporate Executive … Partners
with SITA to develop joint technology for airports … Previews new
organizational structure, including revision of its operations into six
segments. - June – Teams with NTT to establish capital and business alliance
for joint R&D … Was selected to construct a 9,400-kilometer undersea cable
connecting China, Japan, the Philippines, Singapore, Thailand, and Vietnam. - April – Established a global strategic partnership with
Intermedia to launch NEC UNIVERGE BLUE CONNECT, an integrated UCaaS (Unified
Communications-as-a-Service), and UNIVERGE BLUE ENGAGE CCaaS (Contact
Center-as-a-Service) … Unveils the NUC 9 Extreme Kit. - March – Combines NEC Display Solutions with Sharp as a joint
venture … Collaborates with Konica Minolta to promote digital
transformation technology … Collaborates with Siemens on IoT (Internet of
Things) technology for monitoring and analysis … Demonstrates real-time
digital wireless OAM (orbital angular momentum) mode multiplex radio
transmission and bi-directional, 10Gbps outdoor transmission. - February – Aligns with Cisco to strengthen processes for
confirming network equipment authenticity … Partners with Accedian to
focus on providing advanced performance-monitoring, analytics, and network
visibility services.
Financials
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Table 3 compares NEC’s overall financial performance
for the recent past fiscal years.
2020 | 2019 | 2018 | 2017 | 2016 | |
---|---|---|---|---|---|
Revenues | JPY3.1 trillion | JPY2.9 trillion | JPY2.8 trillion | JPY2.7 trillion | JPY2.8 trillion |
Profits | JPY124 billion | JPY78 billion | JPY60 billion | JPY27 billion | JPY69 billion |
About the Author
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Brady Hicks is an
editor with Faulkner Information Services. He writes about computer and
networking hardware, software, communications networks and equipment, and the
Internet.
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