JR East announced cloud based Suica and extended coverage for the Tohoku region, going online with 44 stations in early 2023 and closing some major service gaps around the same time that Mobile ICOCA is due to launch. This same cloud system is expected to drive JR East QR closed loop ticketing and MaaS Suica based services and also syncs with the Mobile ICOCA aim of delivering MaaS services in the JR West region.
You might think that JR East has installed Suica gates in every station but this is not the case: as of 2018 Suica is installed in roughly half of JR East’s 1667 stations with these station additions the first in more than 4 years. The reason is cost. Unmanned stations have simple Suica validators but the cost of hard wiring these to the Suica data center is an obstacle. Fast local processing is one of the advantages of Suica but the dedicated network backbone costs for linking and syncing with JR East servers doesn’t come cheap.
The new internet cloud based Suica backend will calculate fares centrally rather than on each gate. The trade off is slightly slower speeds with the benefit of lower installation and maintenance costs so that Suica can easily be installed anywhere. Japanese tech journalist Junya Suzuki tweeted that probably half of Suica transaction processing would remain local with half of the fare processing in Suica cloud. This means the local Suica card SF transaction is partially offloaded by the gate to a distributed closed loop fare processing network via a fast reliable internet connection. It also means that stations with heavy traffic keep fare processing on the gate.
Previously JR East had said they expect to reach 100% Suica deployment with Cloud Suica in the 2021 fiscal year (ending March 2021) and hope to sell it internationally. The program is running over a year late and the first step will be getting the new system to JR Group companies (JR West, JR Central, JR Kyushu, JR Hokkaido) before going international.