Sun close to Unix deal with Fujitsu
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Sun Microsystems is to merge its Unix server business with partner Fujitsu, according to press reports in Japan.
23 October 2003 Sun Microsystems is to merge its Unix server business with partner Fujitsu, according to press reports in Japan.
While the reports do not cite any sources, such a deal would make sense.
Sun has come under increasing pressure from financial analysts to cut its high levels of research and development funding. This is largely driven by the need to keep its Sparc chip technology competitive with those of rivals, particularly Intel, which produces in much greater volume and therefore lower cost.
A combination with Fujitsu would enable it to slash chip development costs and boost its profitability.
Japanese computer giant Fujitsu is Sun's most significant partner, selling Sparc-based Solaris Unix machines not just in Japan, but in the US and across Europe as well, under the Fujitsu-Siemens brand name.
However, despite the lack of a sources quoted in the Japanese press, a statement issued by Fujitsu suggested that talks are taking place.
"Throughout the years, Fujitsu has enjoyed a close partnership with Sun Microsystems and the two companies have had a number of discussions about the benefits of working together to deliver the best solutions to our customers," read Fujitsu's statement.
It continued: "Those discussions are continuing. At the present time, however, nothing has been decided with respect to expanding the scope of our current relationship with Sun."
And Sun CEO Scott McNealy has been in Tokyo for talks with Fujitsu chairman Naoyuki Akikusa.
Fujitsu is credited with taking Sun's raw Sparc designs and producing much faster chips, to the chagrin of Sun executives. As a result, they add that Sun's biggest competitor often tends to be Fujitsu, not Hewlett-Packard or IBM.
The reports indicate that if a deal were to go ahead, Fujitsu would make the Sparc chips in Japan, freezing out Sun's outsourced chip maker Texas Instruments. It also suggest that manufacture of high end Sun machines would be done by Fujitsu in Japan, while Sun would make the mid-range and lower end hardware.
