Does Intel, Fujitsu server deal also threaten Sun?

By By Mark LaPedus, SBN
iApplianceWeb
(01/31/03, 06:07:21 PM EDT)

Tokyo, Japan -- The just announced Linux-based serveralliance between Intel and Fujitsu not only appears to threaten Microsoft's perceived dominance in mainstream servers, it  also seems to redefine the Japanese computer makers relationship with Sun Microsystems Inc. After using RISC-based processors from Sun for its mid-range computers, Fujitsu Ltd. shift seems to indicate a fundamental change in direction.
 
Under the terms of the agreement, the Japanese company plans to develop and sell a line of Linux-based, mid-range servers--built around Intel's Xeon and Itanium line of 32- and 64-bit microprocessors, respectively.

The servers are said to represent Fujitsu's first enterprise-based, mid-range systems, build around x86-compatible chips. The systems potentially threatens Sun's Sparc-based processor business in that account, according to analysts.

Until now, in the mid-range enterprise space, Fujitsu primarily sells the Unix-based PrimePower server line--built around the 64-bit, Sparc-based processors from Sun. Sun, IBM, and Intel compete in the server-based processor market, it was noted.

Fujitsu has no plans to drop its Sparc-based systems as a result of its deal with Intel. However, there appears to be some overlap between Fujitsu's Sparc-based machines and its Intel-compatible systems in the mid-range space, although the Japanese company claims the two architectures are complimentary.

Intel itself positions Fujitsu's x86-based servers as “mainframe class.” But analysts indicated that these systems do not have the horsepower or bandwidth to extend into Fujitsu's classic System/390 mainframe market. Fujitsu sells IBM-compatible, System/390 machines for the “glass house,” based on proprietary, CMOS-based processors.

Still, the Intel-based machines will play an important role in Fujitsu's lineup. Starting in 2004, Fujitsu plans to develop and sell dual- and multi-processor systems, based on Intel's Xeon processors.

The Japanese company will also develop Itanium-based machines by the end of 2005. These systems will scale up to the most sophisticated, 128 processor-capable mainframe-class systems.

“We see great opportunities from this new collaboration with Intel to extend our mission-critical enterprise solutions to the fast-growing Linux space and to be the world's first vendor to bring such Intel-based systems to the market,” said Tadayasu Sugita, corporate senior executive vice president and chief technology officer of Fujitsu, in a statement.

“This agreement brings a new era of leading Xeon and Itanium processor-based Fujitsu systems to demanding mainframe-class environments,” said Mike Fister, senior vice president and general manager of Intel's Enterprise Platforms Group, in a statement.

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