Wednesday, 20 August 2008

Fujitsu and Cisco have joined hands to produce high-end routers and switches for the Japanese market.

Ever since Cisco acquired a few brands earlier this year, its goal was to increase its market shares throughout the world, which didn’t happen. Cisco approached Fujitsu for a potential partnership and both agreed. In order for Cisco to reach their goal of higher market shares, Japanese target market was at the top of their list. Fujitsu, on the other hand, wants to increase its sales revenue from its brand name in the IT industry in the Japanese market.

In basic contract agreement, Cisco will provide Fujitsu with hardware aspects of the product and Fujitsu will re-label and use their own operating system to market the high-end routers and switches.

If the partnership is successful, Cisco will achieve its goal by moving up from 60 percent to 70 percent in market shares. Fujitsu also has high hopes and the company’s executive team wants to increase profits from the company’s networking division by 50 percent in the next three years.

With leading expertise and support from Cisco, Fujitsu hopes to roll out high-end networking equipment sooner than before.

Fujitsu’s high-end networking products will make their way into the market sometime next year.

Specific terms between Fujitsu and Cisco contract were not disclosed.


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