Fujitsu Siemens is set to cast off its image as a hardware vendor and transform itself into a services-oriented business.
Following discussions last week, the company will concentrate on mobile services, including real-time uploading and downloading through wireless services and business-critical applications.
Gaps in the vendor's portfolio will be filled through a number of key strategic alliances with companies such as Microsoft, Oracle, SAP and Siebel. It also plans to strengthen links with co-founder Siemens to market and sell mobile internet-capable phones over GPRS and the upcoming high-speed Universal Mobile Telecommunications System.
"Services are where the money is, for both the company and the reseller," said Paul Stodden, chief executive at Fujitsu Siemens. "It is time we made this move, and our business partners will benefit."
Stodden said the company aimed to drip-feed products into the market over the next 12 months and invest over 750m euros in marketing and developing the overhaul over the next three years.
However, he stressed that the company would not totally outsource or disband its current manufacturing facilities, but instead would look at the production of each product range on a "case-by-case basis".
"This is a litmus test," said Anthony Jones, vice president of sales and marking at Fujitsu Siemens UK. "No one wants to keep negotiating smaller price cuts on hardware with no margin."
But Steve Brazier, managing director at analyst Canalys.com, was sceptical about the move. "This is Fujitsu Siemens' great vision that we have all been waiting to hear. But what it shows is a vendor that is confused and undecided about what it wants or where it wants to go," he said.
"Its PC business has been losing money, so it did an about turn rather than fixing it. More than half of the company's turnover comes from PCs. It should be focusing on making that business profitable again," he added.
Fujitsu Siemens said it will unveil further details of its transformation at CeBIT next year.
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