Canon to focus on software

Japanese tech giant is shifting its focus to software in Southeast Asia, but not at the expense of its hardware business, says a senior executive.
Written by Lynn Tan @ Redhat, Contributor

SINGAPORE--Japanese consumer electronics giant Canon plans to increase its focus on software in the South and Southeast Asia region, according to a senior company executive.

At a media briefing held here today, Kevin Ogawa, CEO of Canon Singapore, told ZDNet Asia that the company plans to grow its software businesses to some 30 percent of its commercial business in the region.

However, the company will not neglect its hardware business and will continue to make improvements on its hardware equipment, he said.

"[This is] because, to provide better solutions to the customers, we definitely need [a combination of] stronger hardware and easier to use software," Ogawa explained.

Canon's current regional hardware business accounts for about 50 percent of its commercial business sales, while software and services account for some 20 percent and 30 percent, respectively.

According to Ogawa, regional software sales saw a 256 percent year-on-year growth for 2006.

Asia is Canon's "highest growing region in the world" for the first half of 2007, compared to other regions, such as Europe, America and Japan, which registered "one-digit growth" rates, Ogawa noted.

The South and South Asia region posted a 20 percent year-on-year growth over the same period last year.

Last year, the Japanese tech giant posted a global turnover of US$35 billion, of which Asia accounted for 10 percent.

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