Fujitsu and Siemens yesterday officially split from the Fujitsu Siemens Computers joint venture, which has been in place since October 1999.
In November last year, the joint entity announced Fujitsu would acquire Siemens' 50% share in the partnership, for 450 million euros.
The new company, known as Fujitsu Technology Solutions, this week said it aims to double PC server sales in two years and up its global market share to 7%, from 4% currently.
Speaking about what the new company structure means for Fujitsu Technology Solutions in SA, local MD Idris Suleman says the disbanding of the joint venture will create a closer relationship with Japanese parent company Fujitsu Group.
“We have already started the process to move to value services and managed services, which means we are moving into the data centre space. The split gives us a better portfolio of products, as well as better branding,” he says.
While the company previously did focus on the server market, this was mainly in the retail/client space. Its entry into the data centre space, with server and storage products, will see the company trying to make inroads into this lucrative market.
Suleman explains that, for this year, the local company's revenue target remains unchanged.
In a statement released yesterday, the multinational says the “full integration of Fujitsu Technology Solutions, with its strong presence in EMEA, is the catalyst for Fujitsu's transformation into a truly global company. With this goal in mind, Fujitsu is making substantial investment in its European operations, leading its way into the world from its new European bridgehead.”
The company states that within its strategy to drive global business based on products and services, the IA server plays a major role as a core platform for future growth.
“Having already sold 240 000 IA servers in 2007, Fujitsu has made the IA server a core part of its platform products strategy, with an initial target of doubling worldwide sales to 500 000 units by 2010.”
Suleman says the local business has completed its cost-cutting and restructuring programme, as directed by its head office.
In total, eight of its employees have taken voluntary retrenchment packages, while a further seven were laid off - the local operations employed 80 people before the retrenchments. This and other cost-cutting measures have allowed the local business to achieve a 20% operating cost reduction.
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