Friday, October 28, 2005

NEC and Unisys to Collaborate in Technology Research and Development, Manufacturing and Solutions Delivery Worldwide

Global partnership aims at better innovation at less cost through common server platform, shared software development, support services and solution integration

NEC Corporation (NASDAQ:NIPNY) (FTSE: 6701q.1) and Unisys Corporation (NYSE:UIS) today announced that they have signed a Memorandum of Understanding to negotiate a partnership to collaborate in technology research and development, manufacturing and solutions delivery. This alliance would cover a number of areas of joint development and solution delivery activities focusing on server technology, software, integrated solutions and support services.

Technology Alignment
NEC and Unisys plan to collaborate to design and develop a common high-end Intel-based server platform to provide customers of each company with increasingly powerful, scalable and cost-effective servers. The first of these next-generation common platforms is planned for release in 2007. The new servers are to be manufactured by NEC on behalf of both companies. Unisys will continue to supply its customers with ClearPath mainframes with the benefit, over time, of joint R&D by both companies and manufacturing provided by NEC.
The two companies plan to supply to each other their current Windows- and Linux-based middleware products, such as NEC's "VALUMOware" and Unisys Sentinel software. They also plan to jointly develop new middleware aimed at maximizing application and systems management efficiency.

Solutions Alignment
Together, NEC and Unisys plan to extend the customer value and effective geographic scope of their solutions business. Initial areas for the planned collaboration include:

-- Security Products and Solutions. Unisys and NEC both have a strong background in providing their respective offerings in the security market for some of the most demanding industries and government organizations. The companies are planning several new and expanded initiatives that combine NEC's sophisticated biometric devices - such as fingerprint, palm print, and facial recognition systems - with Unisys domain expertise in developing security solutions for financial services, airline transportation, federal government international border control and other industry segments.

-- Telecommunications Solutions. The companies have agreed to explore opportunities for network-based services for the telecommunications industry in order to leverage their respective core competencies. The parties may also collaborate to deliver an end-to-end solution for the emerging IP Multimedia Subsystem (IMS) sector that will help global carriers deliver new services through convergence between existing fixed and mobile networks.

-- 3D Visible Enterprise Solutions. Under the terms of the partnership, NEC will explore the use of Unisys 3D Visible Enterprise (3D-VE) methodology to improve the delivery of services to its clients. 3D-VE is Unisys foundational approach to marrying domain expertise with technical scenario modeling tools to provide customers with a rich, three-dimensional representation of the costs and impacts of IT decisions at all levels of their business organization.

-- Worldwide Opportunities. NEC and Unisys plan to collaborate to advance their intersecting interests in areas such as in consulting, systems integration, outsourcing, and leading-edge solutions as they engage a broad spectrum of customers in countries such as the United States and China, as well as other growth markets.

Support Alignment
-- Maintenance and Support. Under the proposed arrangements, Unisys would become the preferred partner to provide technology support and maintenance services, such as break-fix support, to NEC's customers in markets outside Japan. Additional areas for exploration include how NEC can leverage Unisys global footprint in other service areas.

While non-binding, the Memorandum of Understanding contemplates the negotiation of binding agreements that would give effect to the areas of collaboration mentioned in this release.

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