R&D Spirits
Connecting Seed Technology with
User Needs through Open Source Systems
Kou Miyake
President and Chief Executive Officer
NTT DATA INTELLILINK CORPORATION

NTT DATA INTELLILINK, a fully owned subsidiary of NTT DATA, uncovers and incubates
next-generation seed technology in the rapidly evolving world of systems integration (SI).
Today, in an era of one million subscribers to NTT’s B-FLET’S broadband connection service,
the forecast for network computing is unprecedented expansion in the years to come. Against
this background, we talked to Kou Miyake, President and Chief Executive Officer of NTT
DATA INTELLILINK, about the technologies that are now attracting attention in SI and thestrategies being used to apply them.

R&D activities toward advanced SI technology—Mr. Miyake, what is the work and mission of NTT
DATA INTELLILINK?
NTT DATA INTELLILINK* is a fully owned subsidiary of NTT DATA, an NTT Group company
doing business in the SI field. We are a systems technology company having extensive skills in opensource technology and products, and we partner NTT
DATA on all of their projects designing and constructing system platforms. NTT DATA provides SI
services tightly coupled with customer needs in thegovernment, financial, and corporate sectors. In thiskind of business model, knowledge of the SI businessequates to core competence, but at the same time,
there is an ongoing need to accumulate platform technologies and know-how on operating systems, databases, networks, and other system components. NTT
DATA has been following this approach for sometime, and in 1999, it established NTT DATAINTELLILINK to make its organization more flexi-* http://www.intellilink.co.jp/ (Japanese only)

6ble in these times of rapid technical innovation (Fig.
1). I myself came to this company from NTT Laboratories about a year and a half ago.
Our target is not current technology but technologythat is one step ahead of the pack. Our businessprocess, by the way, consists of an incubation phaseand a business-profit phase. In the incubation phase,
we receive seed technology and funding in the formof trial research from NTT DATA and the researchlaboratories of NTT (the group’s holding company).
At this time, we perform surveys, tests, trials, anddevelopment work and even train engineers in relation to that technology. In the business-profit phase,
we connect seed technology with needs and engage inactual SI support, product sales, and consulting.
—What are your specific targets for technology
development?
We currently have three main targets. The first isservers, where we are mainly dealing with Linux andWindows. In contrast to mainframes or UNIX systems that receive full vendor support, there is much inthese operating systems that generates a need for SI
know-how, and we are focusing lots of attention here.

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R&D Spirits

End usersGov.

NTT DATAFin.

Co.

- No. 1 system integrator in Japan.
- Provides large-scale, mission-critical
IT systems to customers
44% of revenue is public and government,
30% is financial
26% is large corporate users.

Businessunits
Marketing

Application development& deployment- NTT DATA’s strong point is its missioncritical IT system development capability→ Tightly coupled with end user’s
business process.

Platform
Operating systems, databases,middleware, networks

Platform integration

NTT DATA INTELLILINK

Fig. 1. Our mission.

The second is databases where we are using both
open-source and vendor-supplied systems. We haverecently been devoting much effort to PostgreSQL
open source database software (Fig. 2). The third is
networks, though not the wide-area type operated bycommunication carriers. Our emphasis is on closed
networks of the corporate type where we are heavily
involved with firewalls, gateways, load balancers,
and the like. We are also involved in other areas suchas package software for security management andreverse engineering for migrating mainframe-based
systems to open systems.
—How do you view your present role at the company?
In short, I would say that my mission is to “put ourcompany into orbit.” This is our fifth year in operation, and while it’s already been three years since weset up our current business system, our buildup ofmanagement resources especially in terms of personnel is still far from sufficient. For example, we hadVol. 2 No. 11 Nov. 2004

about 50 engineers when I came on board here, andthat number has more than doubled to 108, but I want
us to grow to a staff of 150 to 200 engineers over thenext three years. Likewise, I would like to see ourscale of business double as soon as possible. And
though we are a fully owned subsidiary, I would liketo become a self-contained company capable ofexpanding on our own. This is because a company
that has not reached a certain scale cannot invest andcultivate staff as they see fit. In such a situation, motivation suffers and incentives dry up with the company falling into a negative spiral. To expand business,an infrastructure to that end must be constructed. I
would also like to see the company expand its business to NTT Group companies besides the holding
company as well as to companies outside the group,
but for this we need a business division, which is not
feasible at our present scale. Of course, profit is also
one of our objectives, but to perform good work as allof us wish, we must create a more positive spiral.

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R&D Spirits

Web-based midrange to large-scale corporate systems
Data center systems: storage service and utility computing
Carrier-grade systems: SIP servers and operations systems• Enhance open NMS• Develop O&M tools
for OSS system
Operation and systemmanagement

Development environment• Enhance OSS-based
development environment• Develop OSS-based systemdevelopment framework

Businessapplications
Middleware/database
Operating system

Hardware• Enhance database OSS,
PostgreSQL• Develop high-availability
middleware• Evaluate Web service platforms• Select and recommend Linuxdistribution• Develop high-availability
functions for Linux kernel, suchas “Linaccident”• Select most efficient system andidentify recommended systems• Tune performance

NMS: network management systems
OSS: open source software
O&M: operations and maintenanceFig. 2. Open source software development activities.

Developing key next-generation technology
with a view to network computing—What direction do you think IT is moving in?
I think that the overall trend in the IT business istoward network computing with ubiquitous computing being the ultimate vision. Above all, this will
require the commoditization of basic software, andthe best example I can give you of this, needless tosay, is Linux. At present, Linux is finding widespreaduse on Web servers and Internet gateways, because of
its ease of connection. That is to say, Linux, as open
source software, is understood by a great number ofengineers, and because Linux software connects overthe network, it can provide feedback almost immediately whenever something happens. This kind ofactivity should increase all the more in the years tocome. Naturally, this will require technology to facil-8

itate the use of commoditized parts and to integratethem in new platforms. Of course, technology of thiskind already exists, but it is geared toward a local network level of several thousand computers at most. In
the true broadband era with several tens of millions ofcomputers connected to the network and to each other,
we can expect a network on a vastly greater scale.
—What is the company’s stance toward this trend?
Network computing requires a variety of technologies, and after we determine which will be necessaryand how they should be used, we must then incubate
them. And while this is a time-consuming hit-andmiss process, I would like to uncover those key technologies with as few misses as possible. To this end,
we set up an open-source technology section inNovember last year. This kind of work, however, isnot easy to do on our own, and we are working close-NTT Technical Review

R&D Spirits

ly with outside groups including NTT DATA andNTT Laboratories.
—Could you give us some examples of collaboration
with other companies or NTT Laboratories?
Yes. One example is our linkup with NTT Laboratories in the development of home gateway technology. At present, the user side is responsible for making
all the settings on an Internet home gateway, andwhile this may be acceptable if limited to initial settings, it can be very bothersome if updates have to bemade frequently. Moreover, the occurrence of a major
problem is apt to frustrate users to no end. Our answerto this is a “plug-and-play” approach whereby theuser simply connects the home gateway to a personal
computer as a peripheral device and lets the networkside take care of everything via automatic downloads
and checks. We are working with NTT Laboratories
to construct prototypes devices toward practicalapplication of this mechanism.
We also treat databasing as a key technology of thefuture. As you know, it is now becoming possible todigitize, store, and retrieve all kinds of information
related to life from documents and music to picturesand video. But satisfying this need for business purposes will require technology on a much larger scale.
We are working with the Open Source Development
Center (OSDC) recently established within NTT
DATA and with NTT Laboratories to develop database technology centered on PostgreSQL open
source software. Moreover, in relation to Linux, weare collaborating with the inter-group open source
support center established at NTT Laboratories.
—Are you linking up with any overseas groups orengaged in any international activities?
Well, as for international activities, we became amember of Open Source Development Labs (OSDL),a non-profit organization in the United States, lastsummer. The role of OSDL, which is home to Linus
Torvalds, the creator of Linux, is to connect enterprise with the development community. We are also
working with affiliated companies of NTT DATA andmany other vendors to collect information on tech-Vol. 2 No. 11 Nov. 2004

nology trends in North America and research newly
developed products.
At the same time, we are linking up with India andChina in the form of offshore software development.
In particular, we expect our future relationship with
China to be a close one, and for this reason, we areexploring collaboration on platform technology inaddition to such offshore development.

From theoretical research to application andthe business front line
—Mr. Miyake, what kind of R&D have you been
involved in up to now?
To be quite honest, the fields that I worked in before
coming here had practically no relation to SI. My firstassignment after entering NTT Laboratories in 1980
was to research configuration methods for digitalcommunication networks and traffic theory in thetrunk-switching research division. I worked on thatfor six to seven years. Then, I got involved in morepractical topics including system design of highspeed packet switching equipment.
Next, from around 1990, I worked on the construction of prototype ATM switches as part of ATMswitch development, which was extremely active atthat time. This marked the first time that I became
involved in genuine application work and I was incharge of ATM system design over three generations.
Nearly 2000 units of the ATM systems that I designed
were deployed in Japan in the 1990s. In the midnineties, I also helped support new common carrier(NCC) business that was expanding in Malaysia andSingapore as part of NTT’s internationalization strategy. And from 1992 to 1997, I participated in ITU
standardization activities in relation to ATM. After
that, I did some work on developing network systems
for full-scale deployment of VoIP, a current field of
i n t e r e s t , a n d t h e n c a m e t o N T T D ATAINTELLILINK last year.
—What aspects of your present work do you findinteresting?
To be frank, SI is not a world that I am very famil-

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iar with. But my nature is to look at things from a positive perspective, and I enjoy learning about newfields. For example, I met and interacted with many
American venture entrepreneurs over the years andfound what they had to say extremely interesting. Inaddition to information on technology development, I
learned much about creating business plans and how
to obtain venture capital. Although our company issomewhat different from a true venture, I think we arelucky to have this opportunity of running an actual
business.
—What would you like to do in the years to come?
I would like to find technology born in NTT DATA,NTT Laboratories, or other research institutions thatmight wither away if simply left alone and bring thattechnology to NTT DATA INTELLILINK for carefulcultivation so that it blossoms. To that end, I make therounds of research laboratories searching for suchseed technology. But finding such seeds is not the
only challenge. What is difficult is receiving the funding necessary for incubating those seeds. And even if
such seed technology can be further developed, it will
not blossom if it has no business potential. Since ourcompany is run by engineers including myself, itscore competence is technological expertise. But Ihave recently become keenly aware that engineersfrom here on must be more than just technically competent. I would like to see engineers with a good eye
for technology also incorporate a good sense of business so that they can connect seed technology withreal-world needs. That is my personal theme at themoment.

Future issues: creating a venture-typeorganization and developing staff—As an engineer and business manager, how would
you like to develop the company itself?
As a company of engineers with a venture orientation, we must be a continuous source of technicalinnovation. In the IT world, repeating the same thing
will lead to absolute failure. We must keep a continuous watch on technology trends and keep trying out

10new things. Sometimes, it is necessary to withdraw
from a project. My goal is to promote a mindset ofsustainable development with a sense of flexibility toa changing environment based on an insatiable spiritof inquiry toward technology.
I would then like to expand our staff while improving their individual skills with the aim of forming a
special group of engineers. At present, the complexity of information systems requires a division of laborin engineering work. As a result, there are not manyengineers who not only design but also program andsupervise or plan and manage a business operation.
But to adapt quickly to new situations at the forefront,
as our company must do, we need a staff that canwork as a self-contained organization. My aim is tocultivate engineers who can handle all of the processes required in research and development.
—What is your vision of the future as a researcher
and developer?
The first ten years of my R&D life were spent on
theoretical research. Looking back, I think of thattime as a kind of halfway point. Then, over the nextten years when I was involved in practical applications, I saw many research results finally take form.
And now, as I move into management, I’m helping tobuild bridges between R&D and business. Looking
back, there’s no doubt that I have been involved invarious kinds of work, but I feel that I have madegood progress and have arrived at a good point.
But to tell the truth, at one time I expected that Iwould spend the final ten years of my working life ina university research laboratory. While business canbe extremely interesting, I would have to say, if givena choice, that research suits my personality more thanmanagement. Since I don’t dislike teaching at all, I
really thought that I would be spending the last partof my R&D life in a university. However, present circumstances prevent me from spending my “remaining years” in that way.
—What was it like working at NTT Laboratories?
NTT Laboratories is the place that gave me myR&D foundation, and I spent more than 20 years

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R&D Spiritsthere growing as a researcher and developer. I cannot
deny that I have a deep affection for NTT Laboratories where so many superb researchers work. But
since leaving there, I have come to think that it might
do well to become a more open organization. In addition, perhaps because of its large size, NTT Laboratories seems to feel no sense of crisis, despite the factthat research laboratories around the world are disappearing. I think there is a need to take a longer look at
the surrounding world and make some changes in theway things are done. I began to think like this during
the last year and a half when my exposure to the business world brought about a major change in consciousness in me. While I had previously sought tounderstand things with only my head, first-handexperience shed a whole new light on reality.
—Finally, could you give us a message for young
researchers?

Interviewee profile■ Career highlights
Kou Miyake received the M.A. degree in mathematics and the D.E. degree from Tohoku University,
Sendai, Miyagi in 1980 and 1991, respectively. He
entered Nippon Telegraph and Telephone Public Corporation (now NTT) in 1980. In 1989, he became amanager at the Network Systems Development Center. He moved to the Communication Switching Laboratories as a Senior Research Engineer in 1991 andbecame a Senior Research Engineer, Supervisor therein 1992. He moved to NTT Network Service Systems
Laboratories as a Senior Research Engineer, Supervisor in 1994. In 2001, he moved to NTT Service Integration Laboratories. In 2003, he moved to NTTDATA as a Senior Manager in the Systems Technology Business, IT Business Development Sector. Hebecame Executive Vice President of NTT DATAINTELLILINK in 2003 and the same year he became
its President and Chief Executive Officer.

I would be happy to. From here on, researchers anddevelopers will need to do more than just devote
themselves to the technical aspects of their work. To
spread the fruits of your research into the world, youwill have to keep a keen eye on the outside world anddevelop agility and flexibility in the face of unexpected changes. You must also learn to think, investigate, and act on your own. Instead of waiting forsomething to be given to you, you should find out
what it is that has to be done and then devote yourenergies to that end. That’s the kind of mind that I
would like young researchers and developers to have.

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