Japanese IT giant Fujitsu has been trying to eject its semiconductor business for a number of years, and has finally had enough of the drag it puts on its revenues and earnings. To that end, Fujitsu will spin out its chip business into partnerships with consumer electronics conglomerate Panasonic and rival Taiwan Semiconductor …
meanwhile, at Oracle...
do please note that Sun Microsystems pretty much gave up its own chip development and server manufacturing a few years ago, letting development partner Fujitsu do all the heavy lifting. oh, look, there appears not to be a partner there any more! will Oracle have to spend a penny to keep their captive hardware company alive? methinks you can look at the mess that Java became to guess the answer...
Re: meanwhile, at Oracle...
swscrad> Sun Microsystems pretty much gave up its own chip development and server manufacturing a few years ago, letting development partner Fujitsu do all the heavy lifting
Not quite correct. T4 and T4 Servers release illustrates continued non-Fujitsu SPARC development.
The purchase of Afara Websystems facilitated continued the lower-end SPARC servers development.
Only the beginning
For system makers there are very rough times ahead. The combination of virtualization - which reduces server sales over time - and cloud computing - where the big boys are making their own very streamlined servers - plus a really crappy global economy, is putting the hurt on all system makers. And, it is going to get worse, much worse for enterprise hardware and services vendors across the board over time. Hybrid Cloud is the model that will ultimately be successful, so there will be a small number of servers or appliances running on-prem with high speed connectivity into the cloud provider. Bandwidth providers are gonna love THAT future. Hardware vendors, not so much.
This type of "restructuring" is going to happen multiple times this year around the globe and many players will divest entire divisions, fold entirely, or get creative like Dell. Dell's problems haven't gone away, they just get to writhe in private now. Think salt on a slug.
The computing industry is really in epic upheaval and enterprise buyers are being blasted with marketing FUD like never before. The only enterprise market guarantee is smaller and fewer server devices on-prem doing more computing with more automation and that means a lot of jobs will be gone across the entire sector with massive ripple effects into other segments like HVAC, Backup Power Gens, networking, etc. The salt is on the slug and there is only one outcome for jobs in the entire enterprise computing market - fewer. The next big industry job purge will happen after Software Defined Data Centers is implemented. A single "mainframe" of microservers that can heal itself, place automated service calls and is managed by its $5 a day PHD handler anywhere in the world is where the real enterprise IT job loss kicks in. If you think this is pessimistic, go ahead, think that. But it doesn't change the trends that enterprise IT is in right now. What I am saying is happening now, not in the future, now. HP, Fujitsu, Dell, 2e2 and thousands of resellers and integrators are looking at their financials and wondering what the hell they are going to do to survive. Too late for 2e2. If even 10% of enterprise computing switches to an outsourced cloud model, it will mean the loss of millions of jobs up and down the entire supply chain. The only way for net new jobs to be created is if the entire market expands - on-prem and off-prem - or if cloud companies offset the on-prem job loss, which they don't. And don't get me started on how new SaaS companies will pick up the slack for employment. SaaS companies are going to be the business equivalent of restaurants in New York City. They will start up with lots of fanfare and close shop as soon as the money runs out and SaaS Churn will become an industry joke. Who really makes money throughout the entire process? Cloud Providers and Bandwidth Providers and I am not completely sure of the former, but have no doubt about the latter.
I agree with the notion that the days of the traditional hardware systems vendors are numbered. We can all see that with HP, IBM, DEC, Unisys and so on. Google runs a massive system on a large cluster of cheap beige boxes.
BUT, there are plenty of jobs in corporate IT, data analysis, ERP customizations, Mobile device app development and all sorts of web/software product companies. I am currently working for a major German multi-billion Euro corpo, and they are struggling to recruit competent software developers. My boss would hire at least five people on the spot who look like they can develop any meaningful software (VBA, Java to C++).
I think your dystopic rant is more due to Criminal Neglect in the oversight of the financial system in London, NY, Dublin and a few more moronic places. If you fuck up finance, everything else will be fucked up. Has been like this and will be like this. Stop drinking the bankster's KoolAid.
Is anyone surprised (about FTS)?
FTS is a shambles and sadly, for the people who will be affected, this is not going to be a surprise to the rest of the watching world. That Fujitsu have at last acknowledged that FTS is a loss making directionless non-starter means that real changes will be made, rather than the cosmetic shuffles that only move people or business lines from spreadsheet column "A" to column "B", "C" or "D" and steadfastly ignoring the important number in the bottom right hand corner.
An angle that was not aired here is the ongoing issues FTS has as a result of trying to battle the Government on the NHS contracts. Forgive my ignorance if this is now a dead story, but if it is not there must be some relevance?
(You can use Google Translate to get an English version of the job descriptions.Just use English language in your CV; many employers will be perfectly fine with that.)