-Sadayuki Enya, Managing Director, Sales, Fractal Systems Inc.

By selecting the highly scalable KVH IaaS as our platform, we were able to launch our SaaS based total package "CX SaaS" in a very short time and ensuresufficient capacity for future expansion while reducinginfrastructure management cost."

Financial Information Systems Case Study

Fractal Systems successfully launches reliable cloud business by using KVH IaaS platform.

Fractal Systems successfully launches reliable cloud business by using KVH IaaS platform.

Fractal Systems Inc. Fractal Systems Inc.

Fractal Systems Inc.

IT Services

Business AreaBusiness AreaDevelopment and implementation of SaaS based application and information systems

Financial Services Customers

By leveraging KVH IaaS as its service platform, Fractal Systems provides SaaS application ser-vices required at various stages of commodity future trading. These services include service infrastructure for online trading or market data delivery, order management systems for over-the-counter sales, and business or accounting systems.

KVH IaaS, TDC1 Colocation, KVH low latencynetwork backbone

Leveraging the fractal theory for application development from small to large commercial systems, Fractal Systems was foun-ded in 1997 as a professional firm providing integration services covering system development and operations. Fractal Systemslaunched its SaaS based total package service (CX SaaS) inSeptember 2010. By using KVH IaaS as its information deliveryplatform, Fractal Systems was able to reduce both developmentcost and the burden for asset management while launching thisinnovative new service in record time.

There were only a few months before service release and the infrastructure development schedule was very tight. As most of Fractal’s resources were allocated to application developmentand updates, they were unable to devote significant resources to infrastructure design, introduction management and operationsof this new service. An additional complication to this project was that the demand forecast for this new service was uncertain.

KVH has a reputation of providing financial institutions (Excha-nges, Sell/Buy sides, etc.) and content providers with high qualityinfrastructure services that follow ISO/ITIL and FISC guidelines. KVH's relationship with TOCOM and its deep knowledge of the Japanese financial markets and the exchanges were also highlyevaluated and complementary to Fractal’s CX SaaS service.In addition, operational benefits were an important considerationin platform selection. By using KVH IaaS, Fractal would be ableto shift resources from server management to service develop-ment and quality efforts, allowing it to expand its service portfolioin a short time and respond better to future market demand.

www.kvh.co.jp/en

CustomerCustomer

SummarySummary

Fractal Systems’ Business ChallengeFractal Systems’ Business Challenge

IndustryIndustry

KVH SolutionKVH Solution

Reason for Selecting KVH Services Reason for Selecting KVH Services

Company NameCompany Name

Summary of what Fractals required:

What KVH provided:

• Platform service protected by rigorous security• Flexible and scalable platform responding to the size of actual usage• Carrier-grade low latency and high quality backbone• Quick solutions by leveraging existing facilities• Existing value chain (connection between Exchanges and information providers)

• KVH IaaS Cloud infrastructure services available with monthly charges. Provided server, network and storage envi-ronment for the new system.

• Co-location at KVH TDC1 KVH TDC1 is located close to major Japanese Exchanges such as Tokyo Stock Exchange (TSE), Tokyo Financial Exchange (TFX), Osaka Securities Exchange (OSE) and Tokyo Commodity Exchange (TOCOM), and provides low latency network con-nectivity to them. Comprehensive operation services including cabling etc. is also available.

• Managed Services KVH has deep knowledge of switch management, monitoring and incident management as a Carrier.

• Internet Connectivity Offered KVH’s high bandwidth internet connectivity.

Future Plans for Fractal SystemsFractal Systems plans to release new features and increase access capacity of CX SaaS responding go the market needs by leveraging

of KVH IaaS. Based on the success of CX SaaS, the customer wishes to use KVH IaaS as the platform for their new services.

KVH proposed to use KVH IaaS as the platform for developing SaaS based services and connect to Exchanges and servers in the KVH data center via KVH low latency network which have been selected by a lot of institutions.

Fractal Systems Inc.

KVH Co., Ltd.

Tamachi Ekimae Building, 3-1-35 Shibaura, Minato-Ku, Tokyo 108-0023

Tel (Sales): 03-4560-7100 email: sales@kvh.co.jp www.kvh.co.jp/en

Sumitomo Fudosan Kanad Bldg. 2, 12F, 1-23-1, Kandasuda-cho, Chiyoda-ku, TokyoInauguration: March 12, 1997 Business: Development and sales of financial information related systems

Development and sales of commodity, FX, and securities online trading systemsDevelopment and construction of EC sitesDevelopment of web applications

* All brand names and product names are trademarks or registered trademarks of their respective companies.

Head Office:

URL: http://www.fractal.co.jp/

URL: http://www.fractal.co.jp/

Customer’s Needs:Customer’s Needs:

KVH Solution:KVH Solution:

• Platform service protected with the highest levels of securityFlexible and scalable platform that responds to changes in demandCarrier-grade low latency and high quality backboneQuick solutions by leveraging existing facilitiesConnection with a financial eco-system of exchanges and financial information providers

• KVH IaaS Subscription-based cloud infrastructure environment including dedicated servers,network and storage for the new CX SaaS platform.

• Co-location at KVH TDC1 KVH TDC1 is located close to major Japanese exchanges

such as Tokyo Stock Exchange (TSE), Tokyo Financial Exchange (TFX), Osaka Securities Exchange (OSE) andTokyo Commodity Exchange (TOCOM), and houses anecosystem of high frequency trading participants. KVH TDC1 is connected to KVH’s ultra low latency network and provides comprehensive operational services such as cabling and smart hands, if required.

• Managed Services As a carrier, KVH has deep knowledge of network switch management, monitoring and incident management.

• Internet ConnectivityOffered KVH’s high bandwidth internet connectivity.

Financial Information Systems Case Study

Future Plans for Fractal Systems:Leveraging the flexibility of KVH’s IaaS platform, Fractal Systems plans to respond to market changes by releasing new features andincreasing access capacity of CX SaaS. Based on the success of CX SaaS, Fractal plans to use KVH IaaS as the platform for theirnew service offerings.

KVH proposed developing the Fractal CX SaaS service on the KVH IaaS platform and connecting to exchanges and other financial services providers within the KVH data center via KVH’s low latency network, which is the low latency network of choice by many financial institutions.

• • • •

KVH IaaS Platform

The Internet

KVH IaaS Centers

TOCOM Data center

KVH Low-Latency High-Speed Backbone Network

Fractal Systems Office

Development Team

Operation Team

Other Data center Financial Data Service Providers

KVH Data Center

Financial Data Service Providers Executions

Futures1 FORMAS ASTRO BOCX

Fractal Systems CX SaaS

End User Customers

FROM PC FROM Mobile PC FROM Tablet and Smart

Phone FROM Mobile phone