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Story URL: http://management.silicon.com/itdirector/0,39024673,11025219,00.htm

ICL put out of its misery
Who will champion UK IT services now?

By John Oates

Published: Thursday 21 June 2001

After more than 30 years the brand ICL is being ditched by parent company Fujitsu.

Derek Hardman, marketing director at ICL, said: "Fujitsu wants to be the biggest IT services company in the world but at the moment it has 490 individual subsidiaries."

Hardman also said research revealed that customers view ICL as being respected for software and services, while Fujitsu is seen as 'young and fresh' with big research and development funding. Fujitsu is also seen as a global, rather than European brand.

He said that the main competitor for the new company will be IBM. IBM wouldn't comment on this story but did say in March, when silicon.com first revealed the likelihood of the change: "We don't write off any competition, but if you had to put together a league table of our competitors, I'm not sure they'd rank very high.'

Clive Longbottom, director at analyst house Quo Circa, said: "Fujitsu is waking up to the need for a global brand, ICL goes, Amdahl goes - it's common sense. This is the final nail in the coffin for the idea of ICL floating."

Asked if Fujitsu could compete with IBM he said: "In certain areas, yes, Fujitsu spend $3.5bn on R&D. The trouble is IBM's business is split 50 per cent in the US, 35 per cent in Europe and the rest in Japan. Fujitsu is the opposite; 50 per cent in Japan, 35 per cent in Europe and 15 per cent in the US.'

Longbottom added: "The real problem they have to sort out is their relationship with Fujitsu-Siemens.'

The news confirms rumours that have been floating round since ICL was forced to abandon its IPO last year. CEO Keith Todd was the boardroom victim of the disaster at the time.