Fujitsu is moving to a direct to channel move and says it is all about digital transformation.
The company claims that digital transformation will quell end users’ appetite to deal directly with big vendors.
Fujitsu’s UK product boss James Johnston has been explaining why the vendor is shifting more business towards the channel.
He said that Fujitsu’s channel organisation is best placed to fulfil the kind of shadow IT purchases that accompany a digital transformation mindset.
Fujitsu has been making its direct sales reps compensation scheme more channel-centric and handing over accounts from its direct team to partners.
At the same time it is moving resources from its direct to indirect teams.
The ultimate goal is to increase UK channel business from 50 to 90 percent of total sales.
Digital transformation means that more organisations are purchasing shadow IT. Business lines are investing in IT infrastructure to change their business models, he said.
The channel is better positioned to give that level of agility and to team up with software organisations.
Fujitsu’s PC business is tanking and deal with Lenovo is in the offering. But McLean seems optimistic about what is happening on his patch with more than 600 deals registered under a new distribution-led deal registration scheme launched in January, with 30 percent of those being new customers
Fujitsu has decided on a divide and conquor strategy for its PC and smartphone business – although it has decided to divide itself, so we are not sure if it has got the hang of the concept.
Fujitsu is splitting its PC, both desktops and notebooks, business and its smartphonebusiness into companies of their own with their own long-winded name.
Those two companies will now be called Fujitsu Client Computing Limited and Fujitsu Connected Technologies Limited. These names do not appear to have been made up by the marketing department but rather the legal department.
The outfit said that “it has become increasingly difficult to achieve differentiation, and competition with emerging global vendors has intensified.”
Companies and subsidiaries are spun out to give them more leeway in creativity, R&D, and design. In practice, that might not always happen.
There is an even bigger rumored that Japan’s three biggest, but now struggling, PC makers will be merged into one. Toshiba, Fujitsu, and VAIO are in the process of negotiating a merger of PC businesses. Fujitsu’s split might make it easier for its PC division to make that move and it also might explain why they could not come up with a sexier name for the new company.
While there’s some uncertainty about the future of PCs in the enterprise, there’s one area which continues to do well, and that’s desktop workstations.
IDC released a report saying that the global workstation market grew in the fourth quarter of 2014 by 8.8 percent – amounting to shipments of 946,089 units. For the whole year, shipments amounted to 3.7 million units, representing an 8.9 percent growth compared to 2013.
The USA and Western Europe have the lions share in the desktop workstation market. Both account for 63.6 percent of worldwide shipments.
But emerging markets are growing faster than developmed markets, with Latin America showing double digit growth for the fourth calendar quarter in a row.
HP is the leading vendor with 44.6 percent of market share, while Dell had 35.8 percent market share.
The number three vendor is Lenovo, which took share from both Dell and HP anc achieved 33.1 percent yearly growth. Fujitsu and NEC occupied the fourth and fifth positions respectively.
Sales of notebooks during the fourth quarter of 2014 amounted to 46 million units.
That’s according to Digitimes Research, which said in a report that shipments were flat compared to the same quarter in 2013.
Of the notebooks shipped, Taiwanese original design manufacturers (ODMs) shipped 36.6 million, representing nearly 80 percent of the total marketplace.
ODMs make notebooks which are then rebranded by multinationals or sold as so called “white boxes”.
The chief ODMs were Quanta with 33 percent, Compal with 31.4 percent, Wistron with 15.8 percent, Inventec with 7.5 percent and Pegatron with 6.9 percent.
Digitimes Research said HP was the number one vendor in the quarter with 23 percent market share, Lenovo second, Dell third, Asustek fourth, Acer fifth, Apple sixth, Toshiba seventh, Samsung eighth and Fujitsu ninth.
Desktop PCs and notebooks might not be the flavour of the decade but the need for powerful workstations continues to grow.
IDC released figures showing that worldwide shipments of certified workstations rose in the third quarter by 7.6 percent, compared to the same quarter in 2013.
A total of 930,894 units shipped and IDC said that this is the sixth consecutive quarter of positive growth in what remains a competitive market.
Worldwide, the Middle East and Africa grew by 39.3 percent year on year, Latin America grew by 31.6 percent, and the US and Western Europe, with market shares of 39.2 percent and 25.1 percent grew by 6.7 percent and 2.1 percent respectively.
There aren’t that many vendors selling desktop workstations but HP continues to be the top dog with a 45.8 percent market share.
Dell grew by two percent year on year and has a 36.6 percent market share, while Lenovo has a year on year growth of 24.8 percent, growing its share 2.3 points and with an 11.7 percent slice of the market worldwide.
Fujitsu and NEC came in at fourth and fifth, showing only single digit market shares.
An IDC report said that the Western Europe large format printer market fell in the the third quarter of 2013 by 2.9 percent. Meanwhile it also reported that the document scanner market was up by more than 30 percent.
The top three vendors in the large format printer market are HP, Canon and Epson – together they accounted for 89.3 percent of shipments – they were close to 15,500 units in Q3. LED tech fell by over 13 percent, but UV inkjet printers grew by more than 30 percent year on year. The technical segment accounts for a 60 percent share of the application type while the graphics segment fell from 41.5 percent in share from Q3 2012 to 39.7 percent in Q3 2013.
For document scanners, the top five vendors in Western Europe were Brother, Canon, Epson, Fujitsu and HP – making of 83.9 percent of shipments, which numbered around 83,000 during the quarter.
Distributed document scanners is larger of two main segments with 97 percent share, but production document scanners increased by 8.7 percent in Q3, compared to the same quarter this time last year.
Good Technology’s VP and GM Huw Owen has been snapped up and appointed to VP sales and marketing for EMEA at Symantec.
Previously overseeing Good’s channel growth in Europe and introducing the firm to the Nordics, Benelux and the Middle East, Symantec has snapped him up to win and retain customers as well as growing in all regions across EMEA.
Owen has been named twice in Global Telecoms Business’ Top 40 Under 40 for telecoms, globally, and has been quoted regularly offering comment on mobility.
Before his time at Good, Owen was executive director at Lenovo’s EMEA team, where he helped in servicing and sales in EMEA and globally. He has also held positions at Veritas and Fujitsu, and served as senior director of EMEA northern region services at Symantec.
Commenting on his return to Symantec, Owen said the opportunities at Symantec are “huge”.
“The EMEA region is a key area of focus for Symantec, contributing significantly to the global company revenues,” Owen said.
Matthew Ellard, senior vice president EMEA, Symantec, said: “Huw has an exceptional amount of knowledge in the channel sector which will be of tremendous value”.
IDC’s latest worldwide server market figures are out, and IBM was top dog yet again despite a 10 percent yearly decline in factory revenue, and soft demand for System x and Power Systems.
Factory revenue overall worldwide decreased by 6.2 percent – but still netted $11.9 billion for the second quarter of 2013 alone. This was the second consecutive year of revenue decline as demand weakened in most regions around the world, while server unit shipments dropped 1.2 percent to 2.0 million units, the third consecutive quarterly decline.
Volume systems dropped 2.4 percent, while midrange system demand decreased a chunky 22.3 percent. High end systems decreased 9.5 percent.
HP was just behind IBM with 25.9 percent of the market. HP also experienced a 17.5 percent decline in factory revenue, as well as poor demand for the x86 ProLiant servers and continued declines in HP Integrity demand.
Dell came in third with 18.8 percent factory market share for the quarter, but factory revenues were up 10.3 percent compared to the same time last year, pitching Dell at its highest ever market share.
Oracle stayed at number four, holding six percent market share, with factory revenue decreases of 5.7 percent compared to the same time last year. Cisco was fifth with 4.5 percent share, but experienced a 42.6 percent yearly revenue growth, putting it above last quarter’s tie with Fujitsu.
IDC’s GM for enterprise platforms, Matt Eastwood, said: “Mainstream SMB and enterprise server customers around the world continue to focus on consolidation, virtualization, and migration initiatives aimed at increasing efficiency and lowering datacenter infrastructure costs. At the same time, challenging economic conditions are dampening demand for new IT projects necessary to grow the server market globally”.
“It is clear that the competitive dynamics in the server market remain fierce as the leading server vendors work to offset weak demand for generally higher margin Unix and blade servers with lower margin rack and density optimised servers,” Eastwood said.
A pan-European retail survey commissioned by Fujitsu reveals that most retailers believe stores are still important despite the fact that online shopping is going mainstream.
Even in the age of multichannel, 65 percent of Europear retailers interviewed said they believe the importance of stores is rising rather than diminishing. However, eight out of ten believe online is the top distribution model for the future.
The survey found that the humble store will continue to serve as a hub for retail engagement with “connected” consumers. Ongoing competitive pressures and the widespread adoption of smartphones will force retailers to combine the efficiency of online, while at the same time delivering a good in-store customer experience.
It echoes the findings of a recent Google survey, which concluded smartphones are slowly starting to improve the shopper experience both at home and in actual retail stores. In other words, retailers cannot afford to ignore either component of their multichannel approach. Fujitsu’s survey also stresses the importance of a unified view of all customers across all channels, on top of technology innovations designed to deliver new multichannel solutions.
Retail managers in some countries believe the importance of stores is going up, especially in France and to some extent in Italy, which is also betting on hypermarket and supermarket models. However, German retailers believe online shopping is currently more attractive to their customers. In the UK, however, there is a greater balance across all models.
“It is clear the store remains the shopping ‘hub’ for the majority of consumers across Europe, but the store operating model is changing rapidly to meet the needs of the multichannel shopper.” said Richard Clarke, Vice-President, Global Retail at Fujitsu. “Fujitsu helps retailers to achieve this goal by simplifying their technology deployments and radically increasing agility and customer intimacy.”
Although e-taliers and m-commerce are still on the rise, the study found that traditional retailers are still convinced there is plenty of room for brick-and-mortar stores in the future of retail, no matter how connected it might be. However, service is slowly becoming a key value-add for the store, and some hybrid services such as click and collect are also emerging. Interestingly, British retailers lead the way when it comes to their confidence in traditional stores and their role as a shopping point.
With Fujitsu pulling out of the Broadband Delivery UK Framework there is just one ISP most think could win the contract – BT.
Despite this, the Department for Culture, Media and Sport is not too fussed. A spokesperson told V3 that although it wants as much competition in place for the contracts, the department accepts some projects are “not as commercially competitive” because of the required scale and infrastructure.
BT has that infrastructure.
Fujitsu for its part said that it was pulling out of the process after conversations with the Department. Ultimately, the company decided there wasn’t enough value. It did not detail the “various conditions surrounding the BDUK process” that ruled it out of the competition.
BT promised it would make good on its investments of up to £1 billion. So far, BT has won Wales, Rutland, North Yorkshire, Surrey, Suffolk and Lancashire, V3 reports.
Troubled Japanese electronics maker Fujitsu has announced that its wants 5,000 workers to dispatch themselves in the company carpark while PR bunnies throw cherry blossom in the air. Not literally, of course.
The company said that nearly three percent of its global workforce will have to surrender to the company’s vigorous restructuring, write a haiku of resignation and clean out their desks.
Fujitsu is desperate to boost profitability by reshaping its computer chip business and its overseas operations.
In a statement, it said that the job cuts will be completed by the end of this fiscal year, next month, and will rely on early retirement, layoffs and “other methods”.
Meanwhile another 4,500 workers will be shifted to other parts of Fujitsu. There is a computer chip company being set up with Panasonic, which does sound better than the dole queue. It should be pointed out that Panasonic is not exactly in the best of health either.
Japan’s electronics sector, which has been flapping around on the floor of the IT industry like a bloated fugu fish waiting to be prepared, has been getting a boost lately from the the weakening yen. Still, 2012 will be remembered as the year that the Japanese government finally gave up Elpida Memory and the outfit filed for bankruptcy.
A report from Markets and Markets (M&M) suggested that the micro server market will be worth $26.55 billion by 2014 and microprocessors based on ARM technology are set to take a significant share.
Micro servers major on low power consumption and have small footprints, and use multiple mobile processors. The main market will be small to medium sized businesses and applications use light duty web serving, can be used for dedicated hosting, cloud computing and analytics.
Right now, this sector only accounts for 2.3 percent of total server sales, but M&M predicts that in the next five years to reach between 25 and 30 percent of sales worldwide.
While some large enterprises are already using micro servers in an area dominated by Intel Atom and Xeon CPUs, 64 bit ARM processors are set to appear in 2014 and that will change the market dynamics, the research company said.
North America is the biggest market for micro servers currently, followed by Europe, but it is expected that the Asian region will overtake Europe by 2018. Vendors already in the game include Intel, HP, Dell, Fujitsu and Samsung.