Fujitsu's Late Start in Storage

Its revamped U.S. subsidiary, Softek, will have its hands full trying to break into an area that's already crowded with tough rivals

Last October, Amdahl Corp. announced it will stop development and production of IBM-compatible mainframes, a business it has been in for 30 years. A subsidiary of Japanese high-tech giant Fujitsu since 1997, Amdahl had long been an also-ran in that field, behind IBM. But this fall, the beancounters decided that the profit potential for building another generation of mainframes was so small that it didn't justify the investment. Last December, the board of parent company Fujitsu announced it would take a painful $500 million writedown to dispose of Amdahl's old business.

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