Allied Telesis Holdings

Basic Information

Stock Code
6835
Industry
Electrical Machinery
Category Detail
Information & Communication Equipment
Prefecture
Tokyo
Establishment Year
July 2004
Listing Year
July 2000
Official Website
https://www.at-global.com/
TSE Information
TSE Information
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Other Companies
Nisshinbo Holdings, P Ban COM, Saxsa, OKI, Nakayo, Aiphone, WinTest, Sanel Electric, TB Group, Yokowo, Icom, Nippon Antenna, Japan Avionics

Overview

Allied Telesis Holdings is a network equipment manufacturer founded in 1987, with strengths in the information and communications equipment field, and is a leading company deploying advanced network infrastructure solutions both domestically and internationally.

Current Situation

Allied Telesis Holdings recorded consolidated sales of approximately ¥28.6 billion and operating profit of approximately ¥550 million (fiscal year ended December 2018), providing products and services to a wide range of markets both domestically and internationally. In its core network equipment business, it deploys high-performance solutions centered on switches and routers to companies, local governments, medical institutions, and others both in Japan and overseas. It is actively advancing the enhancement of existing technologies and business expansion, including business for the U.S. aerospace industry and private cloud-related solutions. In the 2010s, it focused on cutting-edge technology development such as SDN technology and virtualization network equipment 'u-VCF,' strengthening its competitiveness. It promotes acquisition of environmental management certifications and development of RoHS-compliant products, with consideration for sustainability. In the medium to long term, it expects growth supported by global expansion and increasing demand for highly reliable networks. In recent years, it has advanced treasury stock cancellations and expansion of overseas bases centered on Asia and the Middle East, focusing on enhancing responsiveness to diversifying customer needs. Going forward, it aims for business expansion in SDN and virtualization technologies, enhanced security, and 5G infrastructure as strategic goals.

Trivia

Interesting Facts

  • Veteran network equipment manufacturer founded in 1987
  • Equipped with self-developed OS 'AlliedWare Plus'
  • Entered aerospace industry in 2012
  • Designated founding anniversary as 'Network Day'
  • Member of U.S. Smart Cities Council
  • One of the pioneers in RoHS directive-compliant products
  • Wide deployment of subsidiaries in Japan and abroad
  • Early adopter of SDN technology among advanced companies
  • Track record of network deployment at U.S. Air Force bases
  • Pioneer in network virtualization technology
  • Early acquirer of environmental ISO 14000
  • Also holds international ISO 27001 information security certification
  • Handles diverse network projects beyond regions and industries
  • Conducts business in diverse international markets
  • Transitioned to holding company structure in 2004

Hidden Connections

  • Promoting technical collaboration via international procurement vendor contract with IBM
  • Early base establishments in Europe and Asia beyond North America for global expansion
  • Established unique position in defense sector through membership in Aerospace Industries Association (AIA)
  • Significantly expanded product lineup through absorption and merger of Corega
  • Registered 'Network Day' with Japan Anniversary Association, contributing to industry awareness
  • Member of U.S. Smart Cities Council for smart city initiatives
  • Operates multiple business subsidiaries for diversified management
  • Contributed to society through fundraising during the Great East Japan Earthquake

Future Outlook

Growth Drivers

  • Increasing demand for highly reliable networks with digital transformation
  • Rising network equipment investments from 5G and IoT expansion
  • Expanding secure network needs in aerospace and defense
  • Market growth from SDN and virtualization technology adoption
  • Accelerated new customer acquisition in global markets
  • Growing demand for cloud service-linked products
  • Growth in industrial network sector
  • Advancement of energy-efficient product development for environmental regulations
  • Solution expansion responding to security enhancement demands
  • Network renewal needs in government and public projects

Strategic Goals

  • Expand global sales ratio to over 50%
  • Capture 20% market share in SDN and virtualization products
  • Secure over ¥3 billion in sales from aerospace and defense
  • Expand energy-efficient products to over 50% of lineup
  • Improve sustainability-certified products to over 70%
  • Promote societal adoption of sustainable network technologies
  • Strengthen repeat business through improved customer satisfaction
  • Reinforce local bases and expand sales in emerging markets
  • Increase IT investment projects supporting DX promotion
  • Continuously strengthen R&D in next-generation network technologies

Business Segments

Enterprise Network Infrastructure

Overview
Provides network infrastructure equipment and solutions to companies and organizations across various industries, supporting the construction and optimization of network foundations.
Competitiveness
Flexible configurations supported by high-reliability proprietary OS and extensive product lineup
Customers
  • Large enterprises
  • SMEs
  • Local governments
  • Medical institutions
  • Educational institutions
  • Financial institutions
  • Manufacturing
  • Retail
  • Data center operators
  • Telecom carriers
Products
  • Enterprise switches
  • Enterprise routers
  • Wireless network equipment
  • Network management software
  • Security products
  • Cloud-linked solutions
  • Network virtualization products
  • Monitoring and operations tools
  • PoE products
  • Industrial switches

Aerospace and Defense Related Business

Overview
Supplies highly reliable network equipment and solutions to defense-related fields including aerospace, supporting mission-critical communications.
Competitiveness
AIA certification and proven track record at U.S. military bases
Customers
  • Aerospace companies
  • Defense industry stakeholders
  • Government agencies
  • Research institutions
  • Military-related companies
  • Base operators
Products
  • High-reliability switches
  • Custom network devices
  • Security-compliant networks
  • Monitoring and management systems

Private Cloud and Data Centers

Overview
Supports optimal data center operations centered on network virtualization products and management solutions for private cloud infrastructure.
Competitiveness
In-house development of advanced SDN and virtualization solutions
Customers
  • Cloud providers
  • Data center operators
  • Large-scale ISPs
  • Public institutions
  • ICT solution providers
Products
  • SDN solutions
  • Virtual network products
  • EtherGRID systems
  • High-performance switches
  • Network monitoring tools

Telecom Carriers and Service Providers

Overview
Provides high-performance, high-reliability network equipment and operational support services to telecom carriers, supporting communication quality maintenance.
Competitiveness
Long-term collaboration track record and trust with telecom carriers
Customers
  • Domestic telecom carriers
  • Overseas telecom carriers
  • ISPs
  • CATV operators
  • Mobile operators
Products
  • Large-scale routers
  • Telecom management systems
  • Network equipment maintenance services
  • Monitoring tools
  • Bandwidth control devices

Industrial Automation and IoT

Overview
Provides industrial network products for harsh environments, supporting factory production and infrastructure advancement.
Competitiveness
Industrial standards compliance and proprietary environment-resistant design technology
Customers
  • Manufacturing plants
  • Energy companies
  • Transportation infrastructure operators
  • IoT device vendors
  • Smart city stakeholders
Products
  • Industrial Ethernet switches
  • Environment-resistant equipment
  • Monitoring systems
  • IoT-compatible network products

Network Equipment Maintenance and Support

Overview
Provides equipment maintenance and operational services to support stable network operation.
Competitiveness
Global maintenance network and specialized engineers
Customers
  • Enterprise users
  • System integrators
  • IT service providers
  • Educational institutions
  • Public organizations
Products
  • Hardware maintenance
  • Software updates
  • Remote monitoring services
  • Troubleshooting services

Solutions for Educational and Research Institutions

Overview
Builds optimal network environments for educational settings, providing high-performance and secure information infrastructure.
Competitiveness
Specialized solutions for education and long track record
Customers
  • Universities and technical colleges
  • Research institutions
  • Educational administrative bodies
  • Academic network operators
Products
  • High-performance switches
  • Wireless network equipment
  • Network management systems
  • Cybersecurity products

Public Infrastructure and Local Government Solutions

Overview
Supports construction and operation of highly reliable network infrastructure in the public sector.
Competitiveness
Abundant delivery track record and trust in public projects
Customers
  • Local government administration
  • Public facility operators
  • Medical institutions
  • Transportation organizations
Products
  • Rugged network equipment
  • Security-enhanced products
  • Monitoring systems
  • Management software

IoT Platform Integration

Overview
Provides network foundations and related products to promote IoT utilization.
Competitiveness
Strengths in cloud integration and security
Customers
  • IoT platform developers
  • Smart building managers
  • Smart city developers
Products
  • IoT-compatible communication equipment
  • Cloud-linked products
  • Network security
  • Remote management tools

Smart City and Urban Infrastructure

Overview
Provides highly reliable networks and solutions to support smart city initiatives.
Competitiveness
Adoption track record in traffic control and customization capabilities
Customers
  • Urban development corporations
  • Local governments
  • Public transportation operators
  • Infrastructure managers
Products
  • Traffic control systems
  • Urban monitoring networks
  • High-reliability network equipment
  • Remote management systems

Overseas Base Sales and Support

Overview
Builds product sales and support systems tailored to local needs through overseas bases.
Competitiveness
Global network and region-specific services
Customers
  • Overseas companies
  • Local sales partners
  • Service providers
Products
  • Local-spec product supply
  • Maintenance support services
  • Technical support
  • Training provision

Solutions for IT Service Providers

Overview
Provides customizable network products and advanced operational support for IT businesses.
Competitiveness
Flexible product design and strengthened partnerships
Customers
  • System integrators
  • Cloud service providers
  • Managed service providers
Products
  • Custom network products
  • Software-defined networks
  • Multi-cloud integration solutions
  • Operations monitoring tools

Competitive Advantage

Strengths

  • Extensive network product lineup and technological prowess
  • Proprietary OS AlliedWare Plus developed in-house
  • Multinational global sales organization
  • Implementation of advanced SDN and virtualization technologies
  • High reliability and redundancy design
  • High evaluation in aerospace sector
  • Robust customer support system
  • Environmental considerations like RoHS compliance
  • Versatility across wide industries
  • Quality management via ISO certifications
  • Enhanced integration with security products
  • Industrial network technology
  • Cloud-linked management solutions
  • Long-term stable business foundation
  • Diverse overseas base deployments

Competitive Advantages

  • Superior advancement in network virtualization and SDN technologies
  • Specialized solutions for aerospace industry
  • Customizability and reliability from in-house OS
  • Rapid support delivery across multiple regions
  • Abundant product lineup addressing diverse needs
  • Adaptation to high environmental standards and product safety
  • Integrated security functions enabling unified management
  • Differentiation via private cloud products
  • Trusted relationships with long-term customers and continuous adoption record
  • Integrated system from manufacturing to sales and maintenance
  • Strength in environment-resistant switches for industrial markets
  • Risk diversification through multi-segment market deployment
  • Development capability to quickly commercialize innovations
  • Market leadership via early adoption of next-gen technologies
  • Ensured reliability through high-standard quality management

Threats

  • Technology innovation competition from global rivals
  • Profit margin erosion from intensifying price competition
  • Delays in responding to rapid communications technology changes
  • Insufficient brand recognition in emerging markets
  • Impacts from international politics and trade restrictions
  • Increasing cyber security risks
  • Progress in in-house IT development by key customers
  • Market fragmentation by new entrants
  • Potential cost increases from stricter environmental regulations
  • Revenue impacts from exchange rate fluctuations
  • Supply chain risks such as semiconductor shortages
  • Intensifying competition for technical talent

Innovations

2024: Expansion of Next-Generation SDN Platform

Overview
Enhanced u-VCF platform to improve network flexibility and security functions.
Impact
Improved customer deployment efficiency and increased new contracts

2023: Announcement of New Features for EtherGRID for Private Clouds

Overview
Achieved strengthened cloud integration and higher speeds, contributing to reduced operational burden for adopting companies.
Impact
Increased proposals and faster deal cycles

2022: Enhancement of Integrated Threat Monitoring System Using Envigilant

Overview
Improved threat detection accuracy and implemented real-time alert systems.
Impact
Higher customer satisfaction and increased new adoptions

2021: Release of New Industrial Ethernet Switch Models

Overview
Enhanced high environmental resistance performance, expanding provision to manufacturing.
Impact
Successful sales expansion in industrial sector

2020: Expansion of Cloud-Managed Switch Product Lineup

Overview
Strengthened cloud integration functions to develop SME market.
Impact
Led to market share expansion

Sustainability

  • Maintenance and strengthening of ISO 14001 environmental management
  • Promotion of RoHS directive-compliant product development
  • Expansion of energy-efficient product lineup
  • Waste recycling promotion activities
  • Promotion of in-house eco-activities and employee education