This new deal with Nihon Unisys and Microsoft, for a major banking computerization/modernization for a Japanese bank, may bode well for Intel, since Unisys sells promarily Xeon and Itanium based servers.
Dow Jones Business News
Nihon Unisys, Microsoft To Make Banking Systems For Hyakugo
Sunday November 30, 8:53 pm ET
TOKYO -(Dow Jones)- Nihon Unisys Ltd. said Monday that it has reached a basic agreement to develop a core banking system for Hyakugo Bank based on Microsoft Corp. (NasdaqNM:MSFT - News)'s Windows operating system.
The deal marks the first time the Japanese computer marketer and systems integrator, jointly created by Unisys Corp. (NYSE:UIS - News) of the U.S. and Mitsui & Co. Ltd. (NasdaqNM:MITSY - News) , will build a "core, mission critical system" for a banking client in Japan, said company spokesman Isamu Mabuchi.
Nihon Unisys shares were up 6.3% at Y822 midday Monday. The Nikkei 225 Stock Average was up 0.8%.
The deal represents a step forward for Microsoft, which aims to have its operating system become a core part of the Japanese banking system.
Many banks still operate old mainframes running proprietary software at almost double the cost of Windows-based banking systems. Others manage their computer system with proprietary software and the Unix operating system. The new Windows- based system is also cheaper than the Unix-based system, Nippon Unisys said.
Such cost-competitiveness may become a draw for smaller, financially fragile regional banks looking to cut operational costs.
Hyakugo Bank is a medium-size regional bank based in Mie prefecture in the west of Japan.
The firms said they will hold a press conference on the deal from 0200 GMT Tuesday.
Nihon Unisys President Seiichi Shimada, Microsoft's Japan unit President Michael Rawding, and Hyakugo Bank's President Hajimu Maeda are expected to attend.
-By Michele Yamada, Dow Jones Newswires; 813-5255-2955; Michele.Yamada@dowjones.com
-Edited by Bennett Richardson
The deal represents a step forward for Microsoft, which aims to have its operating system become a core part of the Japanese banking system.
Many banks still operate old mainframes running proprietary software at almost double the cost of Windows-based banking systems. Others manage their computer system with proprietary software and the Unix operating system. The new Windows- based system is also cheaper than the Unix-based system, Nihon Unisys said.
Such cost-competitiveness may become a draw for smaller, financially fragile regional banks looking to cut operational costs.
Hyakugo Bank is a medium-size regional bank based in Mie prefecture in the west of Japan.
The firms said they will hold a press conference on the deal from 0200 GMT Tuesday.
Nihon Unisys President Seiichi Shimada, Microsoft's Japan unit President Michael Rawding, and Hyakugo Bank's President Hajimu Maeda are expected to attend.
-By Michele Yamada, Dow Jones Newswires; 813-5255-2955; Michele.Yamada@dowjones.com
-Edited by Bennett Richardson
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