Posted: Fri Oct 19, 2001 3:52 am
Would Fujitsus corporate culture really allow this to work?
If so, is information-technology supplier consolidation
good for i.t. end-users, too, or only for i.t. stock-holders?
-- Ben R.
Edmund Klamann wrote:
> Fujitsu confirms IBM alliance talks
>
> Thursday, October 18, 2001 at 18:30 JST
>
> (Reuters) TOKYO -- Fujitsu Ltd, Japans largest computer company, said
> on Thursday it was in wide-ranging talks with International Business
> Machines Corp on possible cooperation in such areas as software and
> computer servers.
>
> It stressed, however, that no decisions had been made on any specific
> areas of cooperation or the timing of an agreement.
>
> Japans computer and chip conglomerates are actively pursuing
> alliances and restructuring schemes as they struggle with a steep
> downturn in chip and electronics sales and jostle for position in
> Japans fast-growing computer software and services market.
>
> "Both companies have begun to explore the possibility of alliances in
> individual business areas and cooperation in a wide array of fields,
> including hardware and software," Fujitsu said in a statement.
>
> Fujitsu and IBMs Japanese unit are among the leading providers of
> systems integration and other computer services to corporations and
> institutions in Japan.
>
> But competition has been heating up as rivals aggressively target the
> sectors relatively healthy profit margins while distancing themselves
> from the volatile chip business.
>
> "I think Fujitsu is probably losing market share in the systems
> integration business to NEC, IBM and perhaps Hitachi as well," said
> Scott Foster, analyst at Lehman Brothers.
>
> "NECs got a very aggressive partner strategy with Oracle and
> Microsoft, and they sell Intel architecture products, and Hitachi
> works closely with Oracle and IBM and of course theyre doing very
> well in data storage now."
>
> NEC Corp , Japans largest personal computer maker, earlier this week
> announced an alliance with software powerhouse Microsoft Corp to
> jointly develop high-end computer server systems and services.
>
> Hitachi Ltd , which earlier this year inked a deal with IBM to
> cooperate in computer servers, has seen rapid growth this year in its
> data storage network business.
>
> And Oracle Corp Japan , the Japanese unit of software giant Oracle
> Corp., has posted strong profit growth this year fueled by brisk
> demand for business software and services.
>
> Some industry executives and analysts have said Fujitsu appeared less
> willing than rival computer services providers to package other firms
> products into the systems it sells. This could prevent it from
> offering the best product for a given system.
>
> "I think the trends have generally been against Fujitsu. The reason
> is probably they have tried too much to go it alone," Lehman Brothers
> Foster said.
>
> The Nihon Keizai Shimbun business daily said Fujitsu and IBM could cut
> costs by more than 30 billion yen ($247.5 million) through joint
> software development, while IBM may share its personal computer server
> technology with the Japanese company.
>
> The market smiled upon news of the talks, with Fujitsus shares
> trading 0.5 percent higher, despite a drop of more than two percent in
> the benchmark Nikkei average.
>
> Hitachis shares slid 4.83 percent to 867 yen. (Reuters News)
If so, is information-technology supplier consolidation
good for i.t. end-users, too, or only for i.t. stock-holders?
-- Ben R.
Edmund Klamann wrote:
> Fujitsu confirms IBM alliance talks
>
> Thursday, October 18, 2001 at 18:30 JST
>
> (Reuters) TOKYO -- Fujitsu Ltd, Japans largest computer company, said
> on Thursday it was in wide-ranging talks with International Business
> Machines Corp on possible cooperation in such areas as software and
> computer servers.
>
> It stressed, however, that no decisions had been made on any specific
> areas of cooperation or the timing of an agreement.
>
> Japans computer and chip conglomerates are actively pursuing
> alliances and restructuring schemes as they struggle with a steep
> downturn in chip and electronics sales and jostle for position in
> Japans fast-growing computer software and services market.
>
> "Both companies have begun to explore the possibility of alliances in
> individual business areas and cooperation in a wide array of fields,
> including hardware and software," Fujitsu said in a statement.
>
> Fujitsu and IBMs Japanese unit are among the leading providers of
> systems integration and other computer services to corporations and
> institutions in Japan.
>
> But competition has been heating up as rivals aggressively target the
> sectors relatively healthy profit margins while distancing themselves
> from the volatile chip business.
>
> "I think Fujitsu is probably losing market share in the systems
> integration business to NEC, IBM and perhaps Hitachi as well," said
> Scott Foster, analyst at Lehman Brothers.
>
> "NECs got a very aggressive partner strategy with Oracle and
> Microsoft, and they sell Intel architecture products, and Hitachi
> works closely with Oracle and IBM and of course theyre doing very
> well in data storage now."
>
> NEC Corp , Japans largest personal computer maker, earlier this week
> announced an alliance with software powerhouse Microsoft Corp to
> jointly develop high-end computer server systems and services.
>
> Hitachi Ltd , which earlier this year inked a deal with IBM to
> cooperate in computer servers, has seen rapid growth this year in its
> data storage network business.
>
> And Oracle Corp Japan , the Japanese unit of software giant Oracle
> Corp., has posted strong profit growth this year fueled by brisk
> demand for business software and services.
>
> Some industry executives and analysts have said Fujitsu appeared less
> willing than rival computer services providers to package other firms
> products into the systems it sells. This could prevent it from
> offering the best product for a given system.
>
> "I think the trends have generally been against Fujitsu. The reason
> is probably they have tried too much to go it alone," Lehman Brothers
> Foster said.
>
> The Nihon Keizai Shimbun business daily said Fujitsu and IBM could cut
> costs by more than 30 billion yen ($247.5 million) through joint
> software development, while IBM may share its personal computer server
> technology with the Japanese company.
>
> The market smiled upon news of the talks, with Fujitsus shares
> trading 0.5 percent higher, despite a drop of more than two percent in
> the benchmark Nikkei average.
>
> Hitachis shares slid 4.83 percent to 867 yen. (Reuters News)