Feeds

Fujitsu chief disses Amazon’s ‘threatening’ enterprise attack

Lack of cost control is Amazon’s secret weapon

Next gen security for virtualised datacentres

Amazon is a threat to enterprise tech firms like Fujitsu not because of its tech nous but because of its willingness to operate at zero cost to expand its business, the Japanese giant’s president has told The Reg.

Masami Yamamoto also said keeping a strong hardware business was essential to the "smartphone to mainframe" vendor’s overall business strategy, even as it rebrands itself primarily as a software and services firm.

Amazon has been pushing into the enterprise space with its EC2, S3 and other cloud services, targeting large customers looking to consolidate their data centres. By partnering with major consultancies and SIs, hiring consultants and large account consulting staff, and doling out certifications on its platforms, it is adding the bells and whistles of an enterprise IT vendor, without having to sell the tin.

Asked if Amazon, and other cloud players without traditional infrastructure businesses to support, were a threat to Fujitsu, Yamamoto chose to focus specifically on the Seattle-based sometime bookseller, but not on its technology nous.

“Their company policy is a threat,” he told us at a meeting of the giant in Tokyo.

Traditional IT firms felt obliged to keep their shareholders happy by at least attempting to deliver a profit margin in the region of 10 per cent, he said, and looked to keep their costs under control to achieve this.

Amazon, by contrast, was looking to expand, he said, “even at zero percentage profit” and "at the price of taking these costs".

Fujitsu’s response could not simply be to “play the cost game”. Rather, it sought to better understand its own customers and leverage that relationship, he said. They needed to be “assured” he said, that Fujitsu was a secure and reliable partner.

While IBM has offloaded much of its hardware portfolio, and HP has flirted with dumping its PC business, Yamamoto declared that hardware was essential, despite Fujitsu's reinvention as a software and services firm. “The base platform to realise all of this is the ICT technology,” Yamamoto declared.

This includes PCs, as well as its mainframe, server and other infrastructure offerings. PCs and other client devices were important as an interface with the customer in branding terms as well as literally, Yamamoto said.

He argued that the client PC market was not shrinking, as a tablet was essentially a PC. “In 10 years' time, the tablet will be replaced,” he said. However, he was not prepared to speculate on what it would be replaced with. ®

5 things you didn’t know about cloud backup

More from The Register

next story
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Oracle reveals 32-core, 10 BEEELLION-transistor SPARC M7
New chip scales to 1024 cores, 8192 threads 64 TB RAM, at speeds over 3.6GHz
Microsoft: Azure isn't ready for biz-critical apps … yet
Microsoft will move its own IT to the cloud to avoid $200m server bill
Docker kicks KVM's butt in IBM tests
Big Blue finds containers are speedy, but may not have much room to improve
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
Gartner's Special Report: Should you believe the hype?
Enough hot air to carry a balloon to the Moon
Flash could be CHEAPER than SAS DISK? Come off it, NetApp
Stats analysis reckons we'll hit that point in just three years
Dell The Man shrieks: 'We've got a Bitcoin order, we've got a Bitcoin order'
$50k of PowerEdge servers? That'll be 85 coins in digi-dosh
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.