IBM targets SOHOs and individuals with new e-commerce software

IBM Japan has released Netcommerce V3 Start, the core software in their CommercePOINT family products for electronic commerce. IBM CommercePOINT has been the foundation of virtual malls made by corporations such as Japan Telecom and Planet, whereas Start is aimed at smaller offices and individuals who wish to start electronic commerce businesses. It allows beginners to create virtual shops and malls on the Internet by offering a selection between Business to Business, and Business to Consumer type malls.

Business to Business malls offer ordering by electronic catalogs on the Internet, instead of processing orders by phone or fax. The SET protocol electronic cash register "CommercePOINT e-Till," which used to have to be purchased separately to open a shop on the Internet, now comes with the Start software. IBM plans to add more functions to the package, such as selective search and display of comparison lists of commodities. --YN

Japan's PC industry still suffers from a sluggish economy

Shipments drop 6% in FY1997
The world-wide shipment of personal computers by Japan's 23 vendors in FY1997 (April 1997 - March 1998) amounted to about 8.2 million units, dropping 6% from the previous year, according to statistics compiled by the Japan Electronic Industry Development Association (JEIDA).

In the 4th quarter (January - March 1998), PC shipments decreased by 4% from the same period of the previous year to 2.3 million units.

In Japan's domestic market, the number of PC shipments fell by 5% from the previous fiscal year to 6.9 million units. In terms of cash, this amount totaled \2.582 trillion (about US$15.8 billion), falling 6% from the previous year. This was the first time since FY1992 that PC sales fell below the level of the previous year.

JEIDA attributed this decline to the prolonged stagnation of Japan's economy and a decrease in consumer expenditure, as well as an unstable financial system in the FY1997.

However, in the 4th quarter the number of units reached 1.9 million, marking the highest number of units shipped in one quarter since 1996. Last-minute purchases before the rise of the consumption tax in April of '97 boosted the PC shipment to 2.9 million units. Records from the last quarter of FY1997 indicate a steady demand of PCs, according to JEIDA.

Portable PCs account for 44% of the total domestic shipment
Breaking down the PC shipment by type for FY1997 in the domestic market, the number of desktop PCs dropped 17% from that in FY1996 to 3.8 million units, whereas portable PCs increased 18% to 3.2 million. In the 4th quarter the number of portable PCs reached 872,000 units, slightly higer than the same period of '96, marking the highest number of notebook PCs shipped in a quarterly period.

As a result, shares of portable PCs in FY1997 reached 44%, an increase of 9 points from the previous fiscal year. "This is remarkable, compared to the world's average of around 20%. In FY1998, the share of portable PCs is expected to surpass 50%, surely increasing at a two-digit pace," says Tetsuya Mizoguchi, chairman of JEIDA's Committee for Personal Computer Business, and Vice President of Toshiba Corp.

Portable PCs have become so popular among Japanese corporate users as well as individual users because of higher quality performance and capacity, size, large color screens, user-friendliness, and economy of space, according to JEIDA.

As for the export of PCs in FY1997, the amount declined 10% from the previous year to 1.3 million units. However, 4th quarter sales jumped 32% over the amount in the same period of the previous year to 365,000 units.

Only 5% growth expected in FY1998
For FY1998, JEIDA projects that PC shipments will grow by only 5% from FY1997 to 7.2 million units. For positive elements of growth, the association points to corporate investments in information systems for Japan's financial "big bang," Y2K solutions, Internet/intranet systems, and electronic commerce, which are inevitable investments for Japanese companies. JEIDA also anticipates benefits from the arrival of new products, such as Windows 98, NT 5.0, high-speed processors (Pentium II), low-cost processors (Celeron), PC98-specs, and DVD-ROM/RAM, all expected to be released this year.

JEIDA also touts the improvement of the business climate due to the government's comprehensive measures for economic recovery, estimated to raise Japan's real-term GDP by 2%. The government's plan includes tax incentives for small-to-medium size business investing in information systems and equipment, encouraging venture business, reducing income and property taxes to stimulate consumption, and the promotion of educational information systems.

"The government's measures will have effects on the PC industry after the middle of this fiscal year, not immediately. In the latter half of the year, we can expect double-digit growth," said Mr. Mizoguchi. --KM

WebTV Starts OpenISP Service

WebTV Networks has announced the start of OpenISP service, which enables consumers to use WebTV services from their ISP accounts. Up until now, WebTV service had to be accessed through approximately 400 nationwide access points provided by WebTV. With the new service, it can now be accessed through a personal ISP connection. Users can now browse the Web or send email on TVs as well as PCs. The service is priced at \1,000 for unlimited use with OpenISP, \2,000 per month plus \5 per minute after 15 hours without OpenISP (WebTV alone). To support the service, WebTV Networks has cooperated with six major Japanese ISPs: InfoSphere, Plala, So-Net, Nifty-Serve, OCN, and InfoWeb. WebTV is going to advertise these six companies as "recommended providers," whereas these providers aim to obtain more users by offering the Internet browsing capability on the TV. --YN

Microsoft Saves the Millenium with its Y2K Webpage

Microsoft Japan has provided a webpage at http://www.microsoft. com/japan/year2k, which is dedicated to providing comprehensive information about the Year 2000 problem. This move follows the opening of "Year 2000 Resource Center" webpage by Microsoft, U.S.A. The page explains the fundamentals of the problem, how to make Microsoft products compliant to the next century, and how pre-existing host base systems and PCs can be integrated. It is comprised of the following sections: frequently asked questions, integration of corporate systems, conversion between Julius/Access calendars and recommendations for using computers beyond 2000. The English version, available at http://www.microsoft.com/year2000/, offers basic troubleshooting for corporations and measures for preventing the problem in the future. --YN

Softbank To Establish Online Security in Japan

Sources close to Softbank said that the company is planning to establish an online securities company this summer. Partnering with E* Trade Group Inc., online brokerage based in California, this merger will allow for companies to trade on the Internet without paying high commission rates. Deregulation rules are expected to take place at the end of the year which will simplify the process for registering securities businesses.

The venture will specialize in financial products such as brokerage in bonds and stocks, investment trusts, and corporate information and analysis of the market. The site will enable markets in the US, Japan and Europe to access the information and engage in transactions at any time of the day, sources said.

The venture will begin pending license agreements, capital and ownership.


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