Rhipe's Japanese operation has been appointed by Microsoft Japan as an indirect cloud solutions provider (CSP) in the country.
The move comes just a few months after Rhipe entered into a joint-venture with Microsoft partner Japan Business Systems (JBS), enabling the Australian publicly-listed distributor to enter the Japanese market.
"This is something that we have been working towards for over a year with the strong support of executives from within Microsoft, both in Japan and in the United States," JBS president Yukihiro Makita said at the time.
For Rhipe CEO Dominic O'Hanlon, the company's appointment in Japan as an indirect cloud solutions provider for that market is the result of "Rhipe's significant investments ans very strong results over the past three years".
"Together with our partner JBS, Rhipe plans to bring a new subscription and pay-as-you-go (PAYG)-based business model to one of Microsoft's largest markets in the world," O'Hanlon said. "Like other countries tat Rhipe has entered, Japan will take a number of years of investment before it is able to deliver financial returns to our shareholders.
"However, Japan has approximately five times the number of SMBs [small- to medium-sized businesses] as Australia and Rhipe believes the opportunity in Japan is greater than any other market in which the company has previously launched.
"Additionally, this is the first market in which Rhipe has used an established Microsoft business partner to work with via a joint venture. The combination of Rhipe with the highly respected market position, technical capabilities and strong relationships that JBS has in Japan is a very exciting prospect for both companies," O'Hanlon said.
Rhipe expects to invest roughly $3 million in the Rhipe Japan joint venture during the 2020 financial year. The investment dollars are to be largely used for hiring personnel and pumped into marketing, systems and enablement services in an effort to drive the adoption of Microsoft cloud subscriptions among SMBs in Japan.