Using our track record within Japan for the sale and large-scale rollout of low-cost servers, KSG's will direct sales toward U.S.-based start-ups and SMBs. These products will pave the way for establishing ties with start-up companies and building an ongoing business base in the U.S. We are moving forward with information exchanges, partnering with start-ups and SMBs, to support bringing their products and/or services to Japan.
Japan still lags behind the U.S. in the development of data centers, and the capabilities for distribution of parts used in data centers, such as HDDs (Hard Disk Drives), SSDs (Solid State Drives), graphics cards, and so forth, is more limited compared to the U.S. We will tackle the demands by data centers in Japan by aggressively exporting these parts to Japan and selling from inventory to allow for expedited delivery.
The distribution network for hardware in Japan has a distinctive structure, in which the major vendors dominate large portions of market share. Consequently, the HPC (High-Performance Computing) market is closed in some ways, but we will generate business geared toward data centers and research facilities by proposing "white-box" products that feature excellent cost performance and a high degree of selectivity.