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  After Screwing Up With Plasma Fujitsu Now Bails On Storage

By David Richards | Thursday | 09/10/2008

First they screwed up in the plasma market now Fujitsu is set to bail on the storage market with Western Digital admitting that they are in talks to buy the struggling Japanese Companies storage operations. Ironically it was during the boom in plasma sales that Fujitsu got out, now they are getting out of the storage market as research see sales spikes in demand for storage.

The purchase of Fujitsu by Western Digital will result in the US storage Company being just 5% behind rival Seagate. Nikkei Business Daily, claims that the two companies are in the "latter stages of negotiations" and are looking to finalise the deal before the end of the year. The deal would include Fujitsu's manufacturing capabilities in Japan, the Philippines, and Thailand. The deal tipped to be worth around $750 million will depend on how quickly the two parties can settle.

Bit Tech.net claims that neither company has commented on what precisely has triggered Fujitsu's desire to sell, with no reports of higher-than-average failure rates or particular failed ventures preceding the news. However, with the financial markets worldwide still suffering from 'uncertain times', the cash injection could prove beneficial for the remaining aspects of the Fujitsu corporation.

Some analysts say that It's hard to see what Western Digital would get out of the deal other than an increase in market

Marcus Tocco a senior executive at  Fujitsu Consulting said " Half of our $54 billion in revenue is derived from high-margin business-to-business outsourcing and consulting.  The truth is that hard drive business is not very strategic and doesn't have very good margins.  We're positioning ourselves to compete globally with the likes of IBM and HP – and our hard-drive business doesn't seem to help that strategy".

 

 

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