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Focus pays off for Unisys

Johannesburg, 25 Sep 2003

Unisys Africa is experiencing one of its most successful years in recent times, and is on track to meet and possibly exceed its targets in both rand and dollar terms.

This is a consequence of the company`s focus, in terms of which it operates only in certain, delineated markets, and provides a limited number of solutions and services, in line with international strategy.

The most dramatic successes the company has enjoyed have been:

* In the managed services arena, where it has secured a number of new, multi-year accounts.

* With its ES7000 server consolidation strategy, where it has become the unquestioned market leader, having been awarded contracts by customers in all of its targeted market sectors.

* Its continued dominance of the cheque processing market, where it holds more than 85% of local market share, and is the leading provider of such products and services into Africa.

* Its ongoing leadership in the petroleum and related markets, where it counts more than 75% of the companies in this market as its clients.

"Five years ago Unisys as a corporation globally took a conscious decision to withdraw from certain markets, to discontinue some low-margin product lines, and to drive itself to a target of more than 75% services," says Unisys Africa MD Barry Holt. "We have implemented this strategy locally, and as a consequence we have maintained, and in some cases enhanced, our market position."

In terms of managed services, the company has won a number of hotly contested contracts in financial services, tourism and retail. This is a significant area of specialisation for Unisys, and one in which it is an acknowledged leader. Services it provides here include full lifecycle desktop management, outsourced call centres and security services. Of particular importance for Unisys is the fact that the bulk of the contracts it secures are multi-year in nature, which provides the company with a significant bulwark of annuity income.

The ES7000 business has gained great momentum over the last year as server consolidation becomes widely understood among corporate clients. Unique in the market, the Intel/Windows-based ES7000 allows corporates to reduce the number of servers they have and to consolidate many applications onto one highly available and serviceable platform.

"The ES7000 has become a strategic differentiator for us," adds Holt. "It has given us a spearhead into markets we have not operated in for many years. Effectively a Windows-based mainframe, it provides customers with rapid return on investment. It is light years ahead of its time, and after two years of extensive marketing and sales, it is being acknowledged in the local market."

Cheque processing continues to be a strong source of revenue for Unisys, especially given the fact that cheque volumes grow year on year. Unisys Africa secured one of its largest contracts ever this year, and its pipeline of activity here is strong.

In the petroleum and related market, Unisys Africa leads in the provision of forecourt solutions and services, not just in SA, but throughout sub-Saharan Africa too.

"With this focus, our obsession with customer service, and our ability to deliver with methodologies based on international best practice, we expect to maintain our position of leadership in our chosen markets," adds Holt.

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