Fujitsu Unveils ‘Fastest’ Mainframe Computers

Fujitsu Ltd., the world’s second-largest computer maker, unveiled Tuesday a series of mainframe computers that it calls the world’s fastest.

The unveiling comes one day before an expected announcement of a new line of International Business Machines Corp. mainframes.

The companies are gearing up for competition to sell a new generation of improved high-end computers. NEC Corp. and Hitachi Ltd. brought out new models in June and July.

“In terms of performance, our machine is about 10% faster than both NEC’s and Hitachi’s,” said Toshio Hiraguri, managing director of Fujitsu’s Computer Systems Group.

He declined to give a specific performance figure. But he said it was three times faster than previous models and remained compatible with IBM, which still holds a commanding share of the world market.

While the Fujitsu computer is faster, it apparently breaks little new ground and pursues technical concepts similar to those of its rivals, analysts said. However, it could help Fujitsu stem its eroding market share in the domestic market.

“It’s a very competitive machine,” said Steve Myers, an analyst at Jardine Fleming Securities. “Their share should be steady in a market that is accelerating.”

Mainframe computers manage huge, far-flung database networks for government agencies and corporations.

Mainframes remain the richest segment of the computer market.

In recent years, personal computers, workstations and other sectors have been more dynamic, both in growth in value and in speed of technical innovation.

Despite predictions that mainframes were becoming technical dinosaurs, however, demand continues to grow--albeit slowly--and the machines appear here to stay.

The mainframe market may be ready to enter a period of faster growth, spurred by a new generation of machines that boast improved communications to link mushrooming networks of personal computers.

Fujitsu is Japan’s biggest computer maker, but its share of the domestic mainframe market has been slipping. Hitachi has made inroads on the strength of its hardware, while IBM Japan has competed with superior software and more flexible pricing, Myers said.

Fujitsu and IBM share the lead with 24% of the domestic mainframe market each. Hitachi is several points behind.

Fujitsu’s machine appears to be priced lower, relative to performance, than Hitachi’s, said Peter Wolff, an analyst at Kidder, Peabody & Co.

This, along with improved software bought from outside vendors and improved marketing overseas, could help Fujitsu stem the erosion of its market share, analysts said.

Fujitsu President Tadashi Sekizawa said mainframe sales were growing at an annual rate in the low double digits, and represented 40% of the company’s data processing division revenue. That revenue is expected to grow 17% to $11.53 billion in the year ending March 31, 1991.

Fujitsu will install 300 of the new M-1800 mainframes in the next three years, Sekizawa forecast.

Fujitsu announced last month that it will buy 80% of ICL, Britain’s largest computer maker, for $1.4 billion. The combined company would become the world’s second-biggest computer maker after IBM.