18(b) How do you expect that your proposed gTLD will benefit registrants, Internet users, and others?

Prototypical answer:

18.4. GENERAL BACKGROUND
SAKURA Internet Inc. has launched its internet hosting services in December of 1996, and as of March 2012, we are proud that we are a service provider with over 500,000 (sakura.ne.jp) zones, and with over 300,000 internet hosting services in use (active memberships). With our economies of scale and many accomplishments, SAKURA Internet has become one of Japanʹs top-class service providers.

The market trend in demand for the data center services in Japan is typically represented by keywords or phrases such as ʺrelieving the initial cost impact,ʺ ʺshifting from ownership to usership-oriented,ʺ ʺmoving from inner city to outer city,ʺ in line with such themes as ʺIT cost reduction,ʺ ʺoff-balance sheet IT assets,ʺ ʺBCP⁄DR solutions.ʺ On the other hand, the market trend in supply may be described by the impact of the Great East Japan Earthquake, to begin with, as well as the increasing business entries into the Japan market by foreign corporations and emerging start-up companies. Consequently, those phenomena have raised major challenges such as ʺelectric power supply issuesʺ and ʺintensified pricing competition (commoditization) .ʺ

SAKURA Internet has recognized those market signals or trends in early stages, and has been taking advantages of its existing services and competitive edges in a comprehensive manner. For instance, we have been engaged in enhancing competitiveness of our data centers (i.e. to implement full line of services, to increase efficiency and lower prices by the newly established PUE1.11 data center facilities, and to launch new services utilizing those advantageous idiosyncrasies). We have been further exploiting the business enterprise market (i.e. to provide services and solutions tailored for the government agencies and offices, through collaborations with business partners). Additionally, we have been engaged in establishing a single and total IT services platform (i.e. to provide a platform⁄infrastructure which allows us to manage and operate data center services in an integrated fashion).

In enhancing our efforts for the above business strategies and operational idiosyncrasies, SAKURA Internet has decided to apply and propose ICANN for ʺ.sakuraʺ because we believe that we and ʺ.sakuraʺ will be able to contribute to the innovations in the use of domain names and to the future expansion of the TLD market.

18.5. ʺ.sakuraʺ INITIATIVES
We have developed the ʺ.sakuraʺ INITIATIVES in applying ICANN for the new gTLD.
The ʺ.sakuraʺ INITIATIVES aim at achieving following FOUR goals:
A) Protect the brand by acquiring ʺ.sakuraʺ
B) Leverage the domain names by utilizing ʺ.sakuraʺ
C) Research the domain environment by studying ʺ.sakuraʺ
D) Envision the future by implementing ʺ.sakuraʺ
The above four goals are in line with our current SAKURA Internet management strategies and our business development, and outlined as follows:

A) Protect the brand by acquiring ʺ.sakura:ʺ
SAKURA Internet is one of the leading data center services providers in Japan, and our initiatives for the new gTLD is a significant opportunity for SAKURA Internet, because our goal essentially is to expand the existing scale of the domain name users in the internet market. However, since the same opportunity could become a threat to us, we have positioned our initial objective to acquire ʺ.sakuraʺ as a precautious defense measure to protect and maintain our well-penetrated ʺSAKURAʺ Internet businesses and its momentum. In acquiring ʺ.sakura,ʺ we propose the following three additional objectives (B, C & D).

B) Leverage the domain names by utilizing ʺ.sakura:ʺ
As SAKURA Internet expects to become the accredited Registry of .sakura, we intend to consolidate our domain names into ʺ.sakuraʺ for the purpose of our business activities. Furthermore, we consider the possibility of transitioning the domains of servers used for our existing services, into the ʺ.sakuraʺ domain. By leveraging ʺ.sakuraʺ and making full use of the new gTLD features, we will be able to offer higher usability and ease of access (short and memorable strings) for the customer market to actually experience.

C) Research the domain environment by studying ʺ.sakura:ʺ
The various data center services that SAKURA Internet provides are offered to a wide range of users, including general consumers, engineers, businesses and institutions. For the last 16 years, the services have been offered and trusted through the same brand, and we take pride in our services that are highly competitive, secure and economical. By implementing an authenticated domain name space, we will not only be able to protect the registered trademarks and credibility, but it will also allow us to count on the effects to achieve safer and more secure services. For instance, the knowledge and know-how acquired from the implementation will help our corresponding team for the abusive uses (ʺThe ABUSE Response Teamʺ) and our dedicated research team (ʺThe Research Centerʺ) for their basis of research and studies. Additionally, we believe that the results of our research and studies, by extension, will contribute to the various research related activities, one of which aims for a robust and safer internet, for example by reinforcing the information sharing and advocating new technologies and techniques with the security related industry organizations.

D) Envision the future by implementing ʺ.sakura:ʺ
The SAKURA Internet business strategies for the future include our vision to create data center and cloud computing services that are competitive ʺnot only in the Japanese market, but are also competitive enough to export in the overseas markets.ʺ Evidently, we have newly built a PUE1.11 data center, domestically, as a part of our efforts in striving to improve efficiency and to lower the operational costs, focused on the emerging cloud computing services market. We position ʺ.sakuraʺ as a crucial part of our vision, and along with other goals ʺto establish a single and total IT services platformʺ and ʺto structure a framework for the planning and development to produce innovative services,ʺ we plan to take full advantages of our research capabilities (mentioned in C) and optimize the use of the environment and features of ʺ.sakuraʺ to design and create new services.

Our ʺ.sakura INITIAIVESʺ are derived from the following key questions:Why do we need it? What responsibilities will we have? Who will benefit from it? How will it work (What are the objectives) ? What will it offer (What value will it provide) ? Each answer is explained in detail in the subsequent chapters.

18.6. OUR CHALLENGES
1. SAKURA Internet is one of Japanʹs top-class independent data center services providers, and with a company motif, ʺSAKURA,ʺ our customers have been using sakura.ne.jp and sakura.ad.jp over the past 16 years. The opportunity to apply for the new gTLD this time around is critical for the well-developed, -established, -maintained and -penetrated ʺSAKURAʺ brand, for the purposes of our future business growth and momentum, but the same opportunity could become a threat to us at the same.
2. The Web analytic tool, ʺAlexa,ʺ and the search engine, ʺGoogle,ʺ both show the results that the keyword search by ʺsakuraʺ will rank ʺSAKURA Internetʺ in the top listings. The results prove that the logic of ʺsakuraʺ = ʺSAKURA Internetʺ to be true, and that the string is well recognized today from the usersʹ perspective, especially in the internet world for both domestic and overseas. . Based upon the results and the characteristics of the search engines, we are convinced that the solid ʺSAKURA Internetʺ brand has penetrated the Japanese society for a long period of time. That is to say, we are urged to protect our existing corporate brand as a responsibility towards consumers and society.
3. SAKURA Internet has over 300,000 customers⁄members, and is currently providing many means through which they communicate and access information. We are urged to increase the customer values and consolidate the domain names for the purposes of surviving the competition, differentiating our services in the future, gaining recognition, sustaining and improving the customer loyalty, even more.
4. For the purposes of managing the operations of such size described in 3, the needs of methods for cost reductions and management efficiency have increased as business grows, and new solutions are required for maintaining services and domain name management.
5. The quality of the SAKURA Internet services has been proven to be a safer and secure choice, by our user scale and groups such as consumers, businesses and government offices. Our motto is to evolve from a user perspective by making continuous efforts to maintain the robust and competitive environment, and our social mission is to always research to achieve safer, more secure and competitively priced services. As Japanʹs leading data center and domain name services provider, we are expected by the industry to sustain our motto and mission.
6. SAKURA Internet, as an independent industry leader, is certain that implementing ʺ.sakuraʺ ahead of other players is important for the industry. As we apply for the new gTLD, we feel that it is our mission to accumulate the knowledge and know-how pertaining to the features, intended purposes and safety of gTLD, and to share the information with the various communities that aspire for the healthy and robust internet.
7. SAKURA Internet has kept growing for the last 16 years, and as Japanʹs major data center services provider we have been offering services that are high in quality, easy to use and competitive (technology and price). In other words, we are expected to sustain and continue to be in the industry leading role.
8. SAKURA Internet has a future vision which is the basis of its business plan and strategies. It is a dream and planned scheme ʺto create data center and cloud computing services that are competitive enough to export in the overseas markets.ʺ

18.7. OUR OBJECTIVES & PURPOSES
A) Protect the brand by acquiring ʺ.sakura:ʺ
〈 Domain Name Users 〉
SAKURA Internet (Management)
〈 Mission⁄Purpose 〉
SAKURA Internet is one of the leading data center services providers in Japan, and has been very successful under the same ʺSAKURAʺ brand for over 16 years. Our mission to implement the new gTLD is a significant opportunity for SAKURA Internet, because our goal essentially is to expand the existing scale of the domain name users in the internet market. However, since the same opportunity could become a threat to us, we have decided to apply ICANN for ʺ.sakuraʺ for the purpose of protecting the brand.
〈 Objectives & Advantages 〉
We propose to acquire ʺ.sakuraʺ as a precautious defense measure to protect and maintain our well-penetrated ʺSAKURAʺ Internet business domain and its successful momentum.

B) Leverage the domain names by utiizing ʺ.sakura:ʺ
〈 Domain Name Users 〉
SAKURA Internet (Sales Department, Public Relations and Advertising Department, General Affairs Department and Accounting & Finance Department)
〈 Mission⁄Purpose 〉
SAKURA Internet intends to consolidate its domain names into ʺ.sakuraʺ for the purpose of its business activities. Furthermore, we consider the possibility of transitioning the domains of servers used for our existing services, into ʺ.sakura.ʺ Our mission to leverage ʺ.sakuraʺ by offering higher usability and ease of access (short and memorable strings) for the existing and potential customer markets, and to realize an environment, where the users become more conscious of and take more into account the potential purposes of the exiting TLDs, will consequently differentiate us from the competitions and improve our corporate brand awareness and customer loyalty.
〈 Objectives & Advantages 〉
We believe that by consolidating our domain names into one, we could enjoy significant benefits and advantages, in terms of internet marketing (SEO and SEM). To the approximately 300,000 members of the SAKURA Internet services, who have been the advocates of our preserved solid brand for over 16 years, and to the other potential customers, we will leverage ʺ.sakura,ʺ a sophisticated gTLD and consistent with the TLD trend, to offer shorter and simplified URLs, which are more memorable and easier to identify, easier to access, and allow to reach the destination faster, because keyword search by a domain name string will conceivably achieve a higher search engine ranking. In other words, we are convinced that ʺ.sakuraʺ will improve the user access and usability dramatically, and create customer values & benefits.
Examples of the shortened URL:www.sakura.ad.jp⁄press⁄ will be www.press.sakura⁄
As a result of achieving the objectives and advantages mentioned above, we feel certain that our corporate brand awareness and customer loyalty will improve.

C) Research the domain environment by studying ʺ.sakura:ʺ
〈 Domain Name Users 〉
SAKURA Internet (The ABUSE Response Team and New Business Development Department)
〈 Mission⁄Purpose 〉
The various services that SAKURA Internet provides are offered to a wide range of users, including general consumers, engineers, businesses and institutions, because they have been trusted as well as highly competitive, secure and economical. One of the reasons why we have been so successful is that we have complete control over our own domain environment. For example, we have recognized achievements in advocating to IETF and in contributing to the open source communities. Our mission⁄purpose is to take full advantages of the features of the new gTLD and to realize a safer and more secure domain environment (i.e. preventing phishing attacks) for the internet community.
〈 Objectives & Advantages 〉
In the past, SAKURA Internet has been actively involved in preventive management. We have ʺThe Research Centerʺ and ʺThe ABUSE Response Teamʺ for the research and studies pertaining countermeasures against abusive uses and fraudulent activities on the internet. One of our objectives is to implement an authenticated domain name space, ʺ.sakura,ʺ which will allow us to protect the registered trademarks and credibility, and to have better and tighter control by the knowledge and know-how acquired from the implementation, helping The Center and The Team to research and prevent the abusive uses. As a result, ʺ.sakuraʺ will enable us to create new operation forms and structures (countermeasures), to achieve the most suitable operations for the domain environment, and the data center services provided over a most reliable environment. We, as a leader in the industry, will develop our proprietary research and studies to provide a safer and more secure environment for the use of internet, and will continue to contribute proactively to the internet society.

D) Envision the future by implementing ʺ.sakura:ʺ
〈 Domain Name Users 〉
SAKURA Internet (The Research Center, Marketing Department, Development Department and New Business Development Department)
〈 Mission⁄Purpose 〉
In the SAKURA Internet business strategies (goals) for the future, our vision is to create data center and cloud computing services that are competitive ʺnot only in the Japanese market, but also in the overseas markets.ʺ Evidently, our PUE1.11 data center, as a part of our efforts in striving to improve efficiency and lower the prices, focuses on the emerging cloud computing services market. As we position ʺ.sakuraʺ as a crucial part of our vision, our mission⁄purpose is to take full advantages of ʺ.sakuraʺ to design, create and deliver new lines of services, exploiting our underlying research capabilities.
〈 Objectives & Advantages 〉
SAKURA Internet has the substantial advantage in providing all the entire value chain, required for all the data center services, in house. Our objective is to implement the process, in which to create new services (namely ʺresearch and planning =〉 development =〉 commercializationʺ), through the ʺ.sakuraʺ environment, in order to enhance ʺthe single and total IT services platformʺ and ʺthe structured framework for the planning and development to produce innovative services.ʺ Meanwhile, we are certain that our objectives will lead us in the future to achieve the ʺdata center and cloud computing services that could compete in the overseas markets.ʺ

18.8. OUR REGISTRY SERVICES
Following are the EIGHT primary registry services (including critical functions) that SAKURA Internet plans to provide for .sakura. Please see #23 (Registry Services) for details.
(1) Domain Name Registration and Renewal
(2) Transfer of Registration between Registrars
(3) Name Server and Zone File Administration
(4) Operation of Whois Database
(5) Registrar Support Services
(6) Data Escrow
(7) DNSSEC
(8) Internationalized Domain Names

In our initial stage of this plan, SAKURA Internet will implement the above eight main services. Advanced features such as authentications and qualifications for the SLD users will be required for the third level domain name registrations and the SLD operations, and will be supported individually and accordingly.

18.9. OUR EFFORTS ON .sakura EXPANSION
SAKURA Internet plans for the following efforts and outreach activities in promoting the new gTLD and .sakura:
A) Protect the brand by acquiring ʺ.sakura:ʺ
- Apply ICANN for ʺ.sakuraʺ
- Register ʺ.sakuraʺ

B) Leverage the domain names by utilizing ʺ.sakura:ʺ
- Provide ʺ.sakuraʺ SLDs for our Sales Department, Public Relations and Advertising Department, General Affairs Department and Accounting & Finance Department
- Consolidate and transition the existing domain names and servers into ʺ.sakuraʺ
- Develop a ʺ.sakuraʺ dedicated Web site
- Produce and generate new Web contents and optimize navigation scheme for SEM and SEO
- Utilize ʺ.sakuraʺ as a PR tool for IR and corporate information distribution
- Utilize ʺ.sakuraʺ as a new internet marketing tool for sales and marketing communications

C) Research the domain environment by studying ʺ.sakura:ʺ
- Provide ʺ.sakuraʺ SLDｓ for our ABUSE Response Team and New Business Development Department
- Authenticate and administer the SLD users (identify, activate, deactivate)
- Develop a process and administration rules to evaluate and qualify SLD objectives and users
- Develop domain name operational rules & guidelines for the designated users
- Provide user support (how to use and to administer)
- Promote and educate about ʺ.sakuraʺ (i.e. as a case study) to business partners and various associated industries
- Utilize ʺ.sakuraʺ as the ʺsafer and more secureʺ PR tool

D) Envision the future by implementing ʺ.sakura:ʺ
- Provide ʺ.sakuraʺ SLDs for our Research Center, Marketing Department, Development Department, New Business Development Department
- Utilize ʺ.sakuraʺ for the service production and release cycle
- Authenticate and administer the ʺ.sakuraʺ SLD users
- Develop a process and administration rules to evaluate and qualify SLD objectives and users
- Develop domain name operational rules for the designated users
- Provide user support
- Promote and educate about ʺ.sakuraʺ (i.e. as a promotional tool) to the business partners

Other Outreach Activities
* Utilize ʺ.sakuraʺ as a communications tool for our stakeholders:authenticated ʺhighly securedʺ Investors Relations information channel

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