Unisys' ace in hole is ES7000

Vendor turns to mainframe class Wintel servers to drive flagging sales up through the beginning of 2001, and aims to streamline the company through job cuts and exiting businesses.

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By  Michelle Sturman Published  December 18, 2000

Vendor turns to mainframe class Wintel servers to drive flagging sales up through the beginning of 2001, and aims to streamline the company through job cuts and exiting businesses.

Unisys says it plans to become a smaller, more profitable supplier of computer services and powerful computers as it moves to exit businesses, cut jobs and restore growth.

In the US, Unisys says it is considering the disposal of the company’s federal computer services unit and will cut 2,000 jobs, or 5% of the workforce, as Unisys jettisons businesses that have generated an aggregate of about US$1 billion in revenue.

“We have made some very, very tough decisions in saying ‘commodity’ is not our business, that [higher margin businesses are] going to make us more profitable,” said Larry Weinbach, Unisys chairman and CEO. “That’s really where we want to play.”

Unisys says it expects Q4 revenue to fall as it exits the low-margin businesses.

Unisys has OEM deals with HP and Compaq for its CMP technology which makes up the backbone of its ES7000 servers, and a recent deal will see Dell resell mainframe-class systems.

“Next year I expect to be given much higher targets [for ES7000 sales],” Rasheed Muhammed, territory manager for Unisys’ Open Enterprise Server Group in the Middle East said.

The push, according to Muhammed, has already started with around 20 customers selected as potential ES7000/Windows 2000 Datacentre Edition sites.

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