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Fujitsu, Intel agree to work together on Linux servers

Posted on: Thursday, 23 January 2003, 06:00 CST

Source: Associated Press

TOKYO (AP) -- Fujitsu Ltd. and Intel Corp. have agreed to jointly develop high-end computer servers using the open-source Linux operating system.

Under the deal, the Japanese electronics maker hopes to sell the servers using future versions of Intel processors, aiming for 100 billion yen (US$848 million) in worldwide sales by 2006, Tadayasu Sugita, Fujitsu's senior executive vice president, told reporters Friday.

The servers will also run the Windows operating system, he said, but the development of sophisticated Linux-based servers is expected to help spread that operating system's use. Costs for using the free, open-source operating system should also be lower, Sugita said. He did not discuss possible prices for the servers.

Fujitsu foresees growth potential in Linux and has made developing Linux-based products a key part of its strategy, devoting a team of 300 engineers to that effort.

The agreement between Intel, the world's largest chip maker, based in Santa Clara, Calif., and Fujitsu is not exclusive. But Sugita said working with Intel from the development stage gives Fujitsu an edge over other companies.

Intel will provide Fujitsu with technical support to develop the server. Fujitsu will develop and supply Linux servers, using versions of Intel Xeon and Itanium processors that are still under development.

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