Fujitsu announces major change in business focus

Company renames Fujitsu Siemens Computers to Fujitsu Technology Solutions following recent buyout
Fujitsu announces major change in business focus
By Vineetha Menon
Mon 30 Mar 2009 02:00 PM

With its recent acquisition of Siemens’ 50% stake in Fujitsu Siemens Computers, Tokyo-based Fujitsu now plans to move from being a purely PC-centric company to a more infrastructure-focused business.

The buyout, which was announced last year and comes into effect on April 1st, saw Fujitu shelling out 450 million euros for Siemens’ stake in the joint venture, which has now been renamed Fujitsu Technology Solutions.

“We are quite happy that this transaction will happen because now we are where we should be,” Kai Flore, president and CEO of Fujitsu Siemens Computers told reporters at a press conference today.

Focusing on a dynamic infrastructures, Fujitsu plans to expand its product and service offerings with more competitive pricing and deliver them globally.

The goal is to increase its global IA server (i.e., servers based on Intel’s chips) market share from 4% to 7% in 2010 but it already faces stiff competition in this market from the likes of HP, Dell and IBM. However Flore pointed out that, unlike its competitors that focus on the entire IT market, Fujitsu will be focusing on just infrastructure.

Commenting on the influence of emerging markets such as the Middle East on the company’s future, Flore stated that they will play “a major role in our growth plans.”

While the company has admitted to losing revenue over recent months, Flore said that this was as expected.

“If you move your company or your product portfolio from a pure PC view to a more infrastructure view, you will lose in certain disciplines and volumes,” said Flore, adding that: “In the new product portfolio, where we want to be, we are growing…”

As part of the changes slowly taking shape, Fujitsu will retain its client PC business in its products portfolio but will move out of low-end products due to ‘fierce competition’ and instead cater only to the medium or premium market segments.

For all the latest tech news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.