October 30, 2017
To whom it may concern
TOKAI Holdings Corporation
Katsuhiko Tokita, President & CEO(Code No. 3167 Tokyo Stock Exchange First Section)

Notice of Strategic Business Alliance with Cloud Ace, Inc., a Premier Partner for
Google Cloud Platform™
TOKAI Communications Corporation (hereinafter “TOKAI COM”), a wholly-owned subsidiary of TOKAIHoldings Corporation, has entered into a strategic business alliance with Cloud Ace, Inc. (hereinafter “CloudAce”), which has the top-class capability and track record in Japan in the field of implementation andtechnical support for Google Cloud Platform™ (hereinafter “GCP™”), to promote sales of GCP™.
Japan’s cloud market exceeded one trillion yen in FY2015 and is forecast*1 to surpass three trillion yen inFY2020. With this as a background, TOKAI COM has proactively participated in partner systems of major
cloud services, and supported customers by providing total support in all the steps involved fromconsultation on the use of cloud services, design, construction and to migration.
Through this business alliance, we will combine TOKAI COM’s infrastructures, such as networks and datacenters, and technological capability and development resources, mainly in systems and infrastructures, withCloud Ace’s strengths in implementation support and integration business for GCP™, with the purpose offurther enhancing support to customers that want to use GCP™. In addition, the two companies will
cooperate in reciprocal customer transfer through joint proposals, etc. and aim to achieve further expansionof earnings and sustainable growth.
The TOKAI Group is developing businesses in accordance with its medium-term management plan
“Innovation Plan 2020 ‘JUMP’” that ends in the fiscal year ending March 31, 2021. This business alliancewill embody “implementing growth strategies that make the most of M&A and alliance”, which is one of thekey measures of the plan, and we are expecting that it will contribute to the expansion of the earnings base ofour core businesses. The TOKAI Group will continue to work unitedly to fulfill the corporate social
responsibility and contribute to the business development of customers.
*1 Source: Report by MM Research Institute (released on December 13, 2016)*Google, Google Cloud Platform and GCP are trademarks or registered trademarks of Google LLC.

Contact: Yoshihiro Taniguchi
Public Relations and Investor Relations OfficeTEL: +81-(0)54-273-4878
Email: overseas_IR@tokaigroup.co.jp

October 30, 2017
To whom it may concern
TOKAI Communications Corporation

Strategic Business Alliance Between TOKAI Communications and Cloud Ace onSales Promotion for Google Cloud Platform™
-- Aiming for Expansion of Business Fields Through Joint Proposals by Utilizing
Our Respective Areas of Strengths and Realizing Reciprocal Customer TransferTOKAI Communications Corporation (Headquarters: Aoi-ku, Shizuoka City, Shizuoka Pref.; President &CEO: Katsuhiko Tokita; hereinafter “TOKAI COM”) and Cloud Ace, Inc. (Headquarters: Chiyoda-ku,Tokyo; President & CEO: Ayatoshi Yoshidumi; hereinafter “Cloud Ace”) today entered into an agreement on
strategic business alliance to promote sales of Google Cloud Platform™ (hereinafter “GCP™”), cloudservices provided by Google™.

1.

Background and Purpose of Business Alliance

TOKAI COM offers a one-stop solution for a broad range of services in the field of information andcommunications for both individual and corporate clients based on its network, data centers and systemdevelopment. With the increasing use of cloud services by businesses in recent years, TOKAI COM has been
focusing also on provision of service for connecting to major cloud services, such as Amazon Web Services(AWS), by utilizing its own network infrastructure. TOKAI COM was certified as GCP™’s Technology Partner,and has been providing broadband and stable connection services with GCP™ since September 2015.
Cloud Ace has been conducting the implementation support and integration business for GCP™ services,such as sales, operation, and paying agent service, etc., at its predecessor YOSHIDUMI Information, Inc.
(currently an affiliated company) since July 2014. The business was spun off from YOSHIDUMIInformation, Inc. in November 2016 into Cloud Ace, a new company, which has been focusing on
GCP™-related businesses as a specialized service company. Cloud Ace is certified as Premier Partner for
GCP™, and has the top-class capability and track record in Japan in the field of implementation andtechnical support for GCP™.
With the rapid change in the environment and technological innovation surrounding the information andcommunication field in recent years, as well as increasingly diversifying and complex needs of customers,companies need to promote business by promptly adapting to such changes to aim for sustainable growth.
With these as a background, the two companies, through this business alliance, will combine TOKAI COM’sinfrastructures, such as networks and data centers, and technological capability and development resources,
mainly in systems and infrastructures, with Cloud Ace’s strengths in implementation support and integration
business for GCP™, with the purpose of making the most of our respective areas of strengths to expand andenhance business fields. In addition, we will work to achieve reciprocal customer transfer through promotionof joint proposals to customers, and aim for further expansion of earnings and sustainable growth byaccommodating to environmental changes.

2.

Content and expected effects of business alliance1)

Content of business alliance
TOKAI COM and Cloud Ace will promote business alliance in the following areas. The details will be
determined later through consultation between the two companies.
(1)

Cooperation in making proposals for GCP™ projects(2)

Support for building and operating GCP™ and provision of network line services to connect toGCP™

2)

(3)

Personnel exchanges and dispatch of engineers(4)

Joint marketing and sales promotion

Effects expected through business alliance
TOKAI COM and Cloud Ace are expected to realize the following effects through this businessalliance.
(1)

Effects expected to be achieved by TOKAI COM• Increase in the number of projects of network line services for connecting to GCP™ throughjoint proposals• Expansion of service coverage areas by securing partner companies for building GCP™ anddeepening relationships with customers which have business relationship with TOKAI COM
only through the provision of infrastructure• Promotion of human resource development and acquisition of certification for GCP™
through personnel exchanges and dispatch of engineers to Cloud Ace, etc.

(2)

Effects expected to be achieved by Cloud Ace• Increase in the number of projects for building GCP™ through joint proposals• Expansion of business fields by securing the source of provision of network lines forconnecting to GCP™
• Elimination of shortage of resources through personnel exchanges and dispatch of engineersfrom TOKAI COM

3.

Image of business allianceProvision of network line service

接続回線サービスの提供
forGCP
connectingto GCP™

技術者派遣
Dispatchof engineers

Cooperation /協力・支援Support[Areas of strength]•【得意領域】
Track record of network line services• Connection to cloud services provided
・ネットワーク回線サービスの実績
by various platforms• Provision of data center operation
・各社クラウドサービスとの接続
services GCPProvisionof support for building
構築・運用支援の提供
and operating GCP™
に関する技術サポート
 GCPTechnical
support for GCP™
[Areas of strength]• 【得意領域】
Strong relationships with Google andTM
name recognition as GCP ’s Premium・Googleとの強い関係とPartner• Trackfor Google-related projects
GCPrecord
プレミアパートナーの知名度
and technological capabilities

・データセンター運用サービスの提供

・Google 案件の実績と技術力

Synergy effects
expected through strategic business alliance
戦略的業務提携によるシナジー効果
TM

共同提案及びTOKAICOM受注 GCP 案件にクラウドエースの構築・運用を採用

Adoption of Cloud Ace’s development and operation capabilities for joint proposal projects and GCPCOM

Expansion of the extent of cloud service

 クラウド提供範囲の拡大、既存顧客深耕
provision and deepening of relationships withexisting customers

projects received by TOKAI

 Increase in the number of GCP™
 GCP 構築案件の増加
development projects
TM

共同提案及びクラウドエース受注 GCP 案件にTOKAICOMの回線サービスを採用
Adoption of TOKAI COM’s network line services in joint proposal projects and GCP

 Sales expansion of network line
 GCP 接続回線サービスの拡販
services connecting to GCP™

projects received by Cloud Ace

 Expansion of business areas
 回線提供による事業領域の拡大
through provision of network lines

Personnelexchanges, dispatch of engineers from TOKAI COM to Cloud Ace
人材交流、TOKAICOMからクラウドエースへの技術者派遣

 人材育成、GCP
Human resource
development,
資格取得
acquisition of certification for GCP™

 Eliminationof resource shortage
リソース不足の解消

4.

Endorsement

TOKAI COM received the following endorsement from Cloud Ace, Inc. for the release of thisannouncement.
I’m very grateful that Cloud Ace can collaborate through this business alliance with TOKAI
Communications Corporation, with whom we can build mutually complementary relationships inexpanding our GCP™ business.
Cloud Ace is aiming to be a one-stop service provider of various solutions related to GCP™ to enable
customers to use GCP™ quickly and with security. I believe that our alliance will lead to further
improvement of customer satisfaction and development of GCP™.
Ayatoshi Yoshidumi, President and CEO, Cloud Ace, Inc.

[For Reference]
Corporate Profile of TOKAI Communications Corporation
Corporate nameHead office
Title and name ofrepresentative
CapitalEstablished
Business activities
URL

TOKAI Communications Corporation
2-6-8 Tokiwa-cho, Aoi-ku, Shizuoka City, Shizuoka Prefecture
Katsuhiko Tokita, President & CEO
1,221.48 million yen (as of April 1, 2017)
March 18, 1977
Communications business, information business, data center business, etc.
http://www.tokai-com.co.jp/

Corporate Profile of Cloud Ace, Inc.
Corporate nameHead office
Title and name ofrepresentative
CapitalEstablished
Business activities

Cloud Ace, Inc.
Nihon Building, 12F (#1239), 2-6-2 Otemachi, Chiyoda-ku, Tokyo
Ayatoshi Yoshidumi, President & CEO
241.5 million yen
November 1, 2016
Operation of “Cloud Ace” total support service for Google Cloud Platform,consulting services, etc.

URL
https://www.cloud-ace.jp/* Google, Google Cloud Platform, and GCP are trademarks or registered trademarks of Google LLC.
* Other company names, product names, service names, and logos, etc. are trademarks or registered trademarks of
their respective owners.

[Inquiries about this press release]
Contact: Miwa, Uemura
Business Promotion Department, Corporate Sales Division
TOKAI Communications Corporation
E-Mail : INQUIRY_JK@tokai-grp.co.jp; URL: http://www.tokai-com.co.jp/