Fujitsu waives right to study IBM software
Article Abstract:
Fujitsu Ltd is waiving its right to study IBM's next-generation mainframe computer software. Analysts see Fujitsu's move as a means for the troubled firm to cut costs in the face of dwindling mainframe sales. Fujitsu, which reported a pretax loss of $149.1 million for FY 1993, will now find it difficult to develop new IBM-compatible mainframes, but the company is pursuing a shift from these machines to smaller computers. The company has been paying an annual fee for the right to study the software, but insiders note that the industrywide trend toward downsizing to smaller distributed computing environments is lessening Fujitsu's need to continue this process. The company is also planning to introduce a new line of parallel processing machines that it says may someday replace mainframe computers. Fujitsu, which is the world's second largest computer manufacturer, announced in mid July that it plans to trim its worldwide workforce 11 percent by mid 1995.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1993
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Softbank to buy memory board maker; Japanese firm makes bet on PC hardware sector with $1.5 billion deal
Article Abstract:
Softbank Corp plans to purchase an 80 percent share of Kingston Technology Corp, a US PC memory board manufacturer, for $1.5 billion. Kingston is the world's largest memory board vendor. Softbank Pres Masayoshi Son originally approached Kingston with a proposal for a joint venture in Japan, but now wants to expand its business into Asia and Europe. Both companies believe the deal will help them expand their businesses. Industry analysts believe Softbank paid too much for an 80 percent share of Kingston and many wonder why the company, which is primarily a software vendor, is entering the hardware business. An overabundance of memory chips has resulted in a 60 percent to 75 percent decline in prices since fall 1995, and Windows 95's failure to provide growth in the PC market caused a severe decline in the memory market. Softbank views the acquisition as part of its plan to provide the infrastructure for the microcomputer industry.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1996
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