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Fujitsus Server Strategy
All Rights Reserved, © Fujitsu Limited 2004
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Fujitsus Server Strategy
July 22, 2004
Akira Yamanaka
Corporate Vice President
Group President, Server Systems Group
Fujitsu Limited All Rights Reserved © Fujitsu Limited 2004
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1. Market Trends and Current State of
Server Business
2. Our Server Business Strategy
3. Server Business Initiatives
Summary
Contents All Rights Reserved © Fujitsu Limited 2004
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1.
1.
Market Trends and Current State
Market Trends and Current State
of Server Business
of Server Business All Rights Reserved © Fujitsu Limited 2004
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10
20
30
40
50
60
Market Trends
Avg. Market Growth Rate Worldwide: + 4%, Japan: - 3%
Avg. Worldwide Growth Rate for IA Servers + 10% (IPF*: about + 100%)
Worldwide Growth Rate for UNIX Servers - 1% Avg. Growth Rate: + 4%
($B)
0%
50%
100%
2003
2006
10%
UNIX
MF
IA
IPF
8%
37%
45%
14%
1%
43%
43%
WW
UNIX
Linux
Windows
Total
5.28 M units
7.75 M units
.66 M
.82 M
.83 M
1.84 M
3.35 M
4.78 M
2003
2006
Worldwide Server Market by OS
(units)
Worldwide Server Market by CPU Type
(s
hare by value)
Server Market Size (value)
(13%)
(63%)
(16%)
(11%)
(62%)
(24%)
Avg. Growth Rate: - 3%
Average Growth Rate for Linux: 31%
2003 2004 2005 2006
2003 2004 2005 2006
*IDC defines the following categories:
CISC: MF, RISC: UNIX, EPIC: IPF (Itanium Processor Family), x86: IA
Japan
*Source: IDC Worldwide Server Quarterly Forecast, Q1 2004 All Rights Reserved © Fujitsu Limited 2004
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Fujitsus Share of the Server Market
Sun
12%
Dell
8%
Fujitsu
Group
6%
HP
27%
IBM
32%
Hitachi
12%
Dell
4%
NEC
14%
HP
16%
Sun
7%
IBM
20%
Fujitsu
22%
Fujitsu Group s Share: 6% of Worldwide Market
(2003) No. 5
: 22% of Japan Market
(2003) No. 1
Worldwide Server Market Share (2003)
Total $51B
Total $51B
Total ¥ 771B
Total ¥ 771B
Japan Market Share (2003)
*Source: IDC Japans Server Quarterly Model Analysis, Q1 2004
*Source: IDC Worldwide Server Quarterly Tracker, Q1 2004 All Rights Reserved © Fujitsu Limited 2004
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-
200
400
FY 2002
FY 2003
FY 2004
(forecast)
0%
10%
20%
(unit:
¥
billion)
Operating
Profit Margin
Net Sales
¥ 382.8
¥ 365.6
(- 4%)
¥ 395.0
(+ 8 )
Server-Related Products Business
Operating
Profit Margin
Net Sales
*Server-Related Products Business: Includes servers plus storage systems and other products
(Consolidated Basis)
(Consolidated Basis) All Rights Reserved © Fujitsu Limited 2004
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Worldwide Server Development & Sales
Japan/Asia-Pacific
North America
Fujitsu Computer Systems Corp.
Europe/Middle East/Africa
PRIMERGY
Mission-Critical IA Server
PRIMEPOWER
Development Structure
Mainframes
GS
Fujitsu
UNIX Servers
PRIMEPOWER Fujitsu
Mission-Critical IA Servers
under development
Fujitsu
IA Servers
PRIMERGY
Fujitsu Siemens Computers
Sales Structure
Japan/Asia-Pacific/Americas
Fujitsu
EMEA
Fujitsu Siemens Computers All Rights Reserved © Fujitsu Limited 2004
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Server Trends: Open Systems & Globalization
FY 2003: Open Systems Share of Total Server Sales 62%
Percentage of Overseas UNIX Server Sales 54%
Composition of Sales
(by server type)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
61%
39%
46%
54%
42%
58%
UNIX Server Sales Ratio
(units)
Overseas
Overseas Growth Rate
+ 91% (FY 2002-3)
Japan
FY 2002
FY 2003
FY 2004 (forecast)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
62%
64%
75%
Mainframes, Others
UNIX Servers
IA Servers
FY 2002
FY 2002
FY 2003
FY 2003
FY 2004 (forecast)
FY 2004 (forecast) All Rights Reserved © Fujitsu Limited 2004
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2.
2.
Our Server Business Strategy
Our Server Business Strategy All Rights Reserved © Fujitsu Limited 2004
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Information Systems Going Forward
From Centralized to Distributed Computing to Ubiquitous Networking Era Data Centers
Tech-
nology
Require-
ments
Features
Building systems optimized for business
processes and data
WEB Services, Utility Computing
Centralization
Performance
Central Host
Centralized
(1980s)
Low-cost
servers
Operating
cost
Client/Server Distributed
(1990s)
Consolidation/Data Centers
(2000s)
Efficient use and optimal allocation of resources
Simple operation of heterogeneous environments
Scale-out, scale-up
Virtualization, autonomic, integration
technologies
Other
Companies
Web
AP
DB
Information HUB
Broadband
Internet All Rights Reserved © Fujitsu Limited 2004
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Our Strategy
Continue leadership in mission-critical systems
~ Commitment to developing core technology ourselves
High reliability, high quality, high performance, leading-edge
technology
Focus on and aggressively promote open servers
Solaris, Linux, Windows
Expand server business on a global basis
Tripartite business structure: Japan, US, Europe
Mission
Provide servers for socioeconomic infrastructure systems
Rapidly respond to customers' diverse and changing needs
Assure continuity of customers' assets
Server Business Direction All Rights Reserved © Fujitsu Limited 2004
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Server Product Strategy
GS - Assure continuity of
customers assets
Launch new model in 2006
PRIMEPOWER
- Ensure reliability with
Fujitsu-developed hardware
- Leverage rich applications
portfolio for Solaris
Unify product offerings with
Sun in 2006
IA Servers - Fully leverage openness of
Linux/Windows
- Differentiate through high
reliability and quality
Introduce mission-critical IA
server in 2005
GS
PRIMEPOWER
PRIMERGY
Mission-Critical
IA
Server
[MSP/XSP]
[Solaris]
[Linux/Windows]
Mission-
Critical
Systems
Depart-
mental
Systems All Rights Reserved © Fujitsu Limited 2004
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Developed
by Fujitsu
Chipset, Server
Developed
by Fujitsu
GS
PRIMEPOWER Mission-Critical
IA Server
PRIMERGY
Joint Development
with Fujitsu
Siemens
Computer
Commitment to Mission-Critical Technology
Scalability Continuous Operation Autonomic Control
Server Development Strategy
Deliver Mission-Critical Performance and Openness
Utilize common Fujitsu mission-critical technology in all server
offerings
Leverage joint development tie-ups with global players
Strategic
Development
Alliances
Greater Efficiency
Through Cooperation
with Partners in High
Volume Areas
Unified products w/
Sun Microsystems
Processor,
server
developed
by Fujitsu
Processor,
server
developed
by Fujitsu All Rights Reserved © Fujitsu Limited 2004
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Shared Development
40% Reduction in Overall Costs
PRIMEPOWER
Mission-
Critical
IA Servers
GS
*Ratio of common items in new model development
*Ratio of common items in new model development
Components
Firmware
Chipset (ASIC)
Processor
30%
30%
60%
80%
20%
75%
---
90%
Shared
Development Ratio*
Shared
Development Ratio*
Shared
Development Ratio*
Shared
Development Ratio*
Structural Elements
Structural Elements
GS Processor
PRIMEPOWER
Processor
Differentiated portion
Differentiated portion All Rights Reserved © Fujitsu Limited 2004
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Our Server Business Positioning
HP
Processor
Developers/Vendors
Software and Services
Vendors
Fujitsu is Japan s only vendor able to leverage its mainframe
technology heritage to develop its own processors and servers
Mainframe Vendors
Lifecycle
Management
Comprehensive Solutions
Electronic
Devices
TRIOLE
Integra
tion
Customers
Platforms
Software &
/Services
IBM
Dell
High-End Server
Developers/Vendors All Rights Reserved © Fujitsu Limited 2004
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Developed by Fujitsu / Strategic Alliances
Developed by Fujitsu / Strategic Alliances
Solaris Market
63% of
UNIX Market
(¥ 700 B)
Fujitsu Customers:
About 1,000
companies
PRIMEPOWER
IPF Market
New Growth
Market
(¥ 500 B in 2006)
Fujitsu Customers:
About 4,000
companies
Japan
Market
Overseas
Markets
Transmigration Market
GS
Mission-Critical
IA Server
PRIMERGY
SME
Market
Fujitsu Customers:
About 40,000
companies
Markets in
which we can
leverage our
mission-critical
IA server
Mainframe
Market
Fujitsu Customers:
About 2,300
companies
Servers to Meet Varied Market Requirements All Rights Reserved © Fujitsu Limited 2004
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3.1 Continuing Leadership in
Mission-Critical Systems
Commitment to developing core
technology ourselves
3.2 Striving for Further Growth
3.
3.
Server Business Initiatives
Server Business Initiatives All Rights Reserved © Fujitsu Limited 2004
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3.1
3.1
Continuing Leadership in
Continuing Leadership in
Mission Critical Systems
Mission Critical Systems
Commitment to Developing Core
Commitment to Developing Core
Technology Ourselves
Technology Ourselves All Rights Reserved © Fujitsu Limited 2004
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