NEC provides Daikin with cloud-based IT infrastructure for mission-critical systems- Flexibly respond to globally expanding business and reduce IT expenses -

*** For immediate use July 5, 2013


Tokyo, July 5, 2013 - NEC Corporation (NEC; TSE: 6701) is providing Daikin Industries, Ltd. (Daikin) with private cloud IT infrastructure services, including servers, operating systems and middleware, for operating Daikin's mission-critical systems. This IT infrastructure is already operating with Daikin's air conditioning business in China and chemical business in Japan.

NEC is also providing mission-critical system applications for operational and maintenance services for Daikin's air-conditioning business in China.

Currently, Daikin is accelerating the expansion of its international business, mainly in the air-conditioning and chemical fields, in order to realize "FUSION 15," the company's strategic management plan targeting the year 2015. In conjunction with this, Daikin is integrating the individually constructed mission-critical systems, including accounting, sales and manufacturing systems (utilizing SAP ERP software), for each of its global businesses, as well as aiming to implement early response systems to meet the needs of business expansion and to reduce IT expenses for development, operation, maintenance and others.

As part of this initiative Daikin is providing mission-critical systems to 6 air-conditioning companies in China and its chemical business operations in Japan through IT infrastructure from private cloud services using NEC's data centers. Going forward, Daikin aims to continue expanding this initiative, beginning with its chemical business in North America.

These measures are expected to strengthening Daikin's management base by enabling the company to quickly and flexibly respond to management changes brought on by the establishment of new offices and M&A, while ensuring high quality performance and security, and reducing the total cost of operations (TCO) for company systems by approximately 30%.

Furthermore, Daikin is establishing a standardization support center in order to support standardization in areas that include business standards, system standards and operational standards. Under this standardization support center, IT specialists from NEC provide Application Management Outsourcing (AMO) services supporting the operations and maintenance of SAP applications for the air conditioning business in China. This ensures high quality support for Daikin and enables it to continuously improve its applications.

"In 2010, NEC completely revamped its mission-critical-systems in order to accelerate consolidated business management, improve operational efficiency and to reduce the total cost of operations (TCO)," said Yukihiro Sagawa, General Manager, Manufacturing and Process Industries Solutions Development Division, NEC. "This enabled us to consolidate the mission-critical systems of NEC Group companies, who formerly built and operated these systems by themselves, into an integrated IT infrastructure that can be provided to the entire group through a private cloud environment. The cloud services being provided to Daikin are reinforced with knowledge and experience cultivated through NEC's record of accomplishments."

Going forward, NEC will continue capitalizing on its achievements in order to propose innovative new solutions for Daikin that contribute to greater efficiency, enhance company management and support global business expansion.

NEC delivers a seminar covering these services on Friday, July 12 from 11:45 to 12:30 at the NEC iEXPO Kansai 2013, held at the Grand Front Osaka from July 11 - 12, 2013.