Fujitsu Consolidates To Defend Against IBM, HP

Launching Oct. 1, the three businesses combined are expected to have close to $2 billion in annual revenue.
Fujitsu plans to launch Oct. 1 a new North American company that combines Fujitsu's consulting and computer manufacturing operations to fend off larger competitors IBM and Hewlett-Packard.

Fujitsu North America Holding brings together Fujitsu Consulting, Fujitsu Computer Systems, and Fujitsu Transaction Solutions under one unified corporate structure that can offer a broad portfolio of products and services, Fujitsu said. The new company is expected to have close to $2 billion in annual revenue.

"Our clients will benefit from a simplified engagement model with improved accountability and greater access to the complete suite of integrated Fujitsu offerings," Richard Christou, corporate first senior VP for Fujitsu, said in a statement. "This will significantly improve responsiveness to our global clients who look to Fujitsu to support their North American operations."

Fujitsu's move follows on the heels of HP's $13.9 billion acquisition of IT services company EDS. Combining EDS services with HP's computer systems operations creates the world's second-largest IT and business services company, next to IBM. The combined services revenue for EDS and HP last year was, based on certain financial assumptions or projections, $38 billion, compared with $54 billion for IBM.

Farhat Ali, president of Fujitsu Computer Systems, was appointed president and chief executive of Fujitsu North America Holding. Ali said in a statement that the potential benefits of the combined company include "improved responsiveness to client needs, faster time-to-market with integrated value-added solutions, greater market presence, improved operational efficiencies and additional support from our key alliance partners."