Fujitsu to tap telecom boom with server mkt entry

Fujitsu, the Japan-based $45 billion information technology and communications solutions conglomerate, plans to open offshore development centres in Hyderabad and Pune.

It also aims to tap the telecommunication boom by selling volume servers in the Indian market and has plans to enter the banking and retail market.

The third largest server company in the world, Fujitsu, which is entering the Indian server market, aims to grab at least 5 per cent of it in another two years. The total server market in India, according to the latest IDC (server tracker December 2005) figures, is 23,995 units and revenues of $147.84 million.

The company has a server manufacturing facility in China and two others in Singapore and Germany. The planned offshore development centre in Hyderabad will have 2,000 seats.

Choi Chee Kong, Vice President-Regional, Fujistu Asia said, "It is never late to enter India, it is such a large market. We are optimistic about reaching and sustaining optimum levels of growth and profitability through our range of products."

At present the company earns $500 million from its operations in Asean and south Asia and is the top IT service provider for the governments of the UK and Canada.

The company also has an alliance partnership with RedHat in the Linux server segment and SAP for utility computing. The company spends almost 5 per cent of its revenues in R&D.

The largest market for the company continues to be Japan where 74.8 per cent of its revenue comes from.