I respectfully disagree. Siemens has made it clear that with there reorganization plans the building of fab for MSX in EEurope the plans to issue new stock for strategic acquisitions and its global presence in the world as a provider of telecomunications suggests that while Siemens may not be developing the cutting edge technology they fully understand the potential and changes ahead. The old world paradigm is changing. Look at Mercedes buying chrysler building plant in US SAP BMW BAYER Hoechst.
Siemens' reorganization creates consulting and support powerhouse
Burlington, Mass. - Siemens Business Services LLC today formally
announced commencement of its operations as a subsidiary of New
York-based Siemens Corporation and the U.S. operating unit of Siemens
Business Services GmbH & Co. OHG based in Munich. The new enterprise is one of three North American business units of Siemens Information and Communications that were announced today following the largest
reorganization in the company's 150-year history.
The company also announced Walter Gerdes as acting president and CEO,
Siemens Business Services LLC. Since 1996, Gerdes, 53, has been an
executive board member of Siemens Nixdorf and was responsible for
business services to worldwide Siemens companies. Prior to joining
Siemens, Gerdes held various positions at EDS.
Headquartered in Burlington, Mass., Siemens Business Services is one of the leading worldwide full-service technology service providers offering SAP R/3 consulting and implementation services, systems integration and outsourcing for business customers located in the United States, Canada and Mexico.
"We are the catalyst that customers rely on for delivering the promises of convergence throughout the network of Siemens Information and Communications business units," said Gerdes. "Cooperation is our maxim. We are dedicated to ensuring that customers can quickly install and take advantage of the improved efficiencies and functionality that
distinguish Siemens' leading-edge data and telecommunications
solutions."
Siemens Business Services is comprised of various parts from Siemens and Siemens Nixdorf Information Systems. Under the new structure, customers will continue to benefit from Siemens' comprehensive vertical-market know-how and one-stop shopping for end-to-end information and communication technology solutions and services. Customer offerings include: * Comprehensive SAP R/3 consulting and implementation services supported by worldwide R/3 Competence Centers * Data center outsourcing, network management and systems integration * Document management, imaging and workflow.
In describing the strategy behind the new organization, Gerdes said, "We are driven by a philosophy of design, build and operate, which is a key value-added driver that keeps us ahead of an organization's diverse needs. Our customers rely on Siemens to play an active role as part of their internal IT team or to serve as their entire IT operation. This requires an intimate knowledge of not only their business and competitive landscape, but also of the latest advances in technology. In addition, we are continually striving to ensure our projects are performed on time, within budget and utilize the highest quality hardware and software components."
Collectively, the global Siemens operating groups participating in the
reorganization represent approximately 40 percent of the $64 billion in revenues that Siemens reported during fiscal year 1997.
In addition to Siemens Business Services, other business groups within
the Siemens Information and Communication family include Siemens
Information and Communication Products and Siemens Information and
Communication Networks.
Worldwide, Siemens Business Services employs 14,000 professionals,
represents approximately $4 billion in annual revenues and is led by Dr. Friedrich Fröschl, president and CEO, and group managing board member,
Alfred Nowosad.
About Siemens Business Services
Headquartered in Munich, Germany, Siemens Business Services is one of
the leading worldwide full-service technology service providers offering SAP R/3 consulting and implementation services, systems integration and outsourcing for business customers located in the United States, Canada and Mexico. Siemens Business Services is part of the Siemens family of companies, which in the latest fiscal year had approximately $65 billion in combined revenues and 386,000 employees in more than 190 countries.
Homepage: www.sbs.de.
All trademarks used herein are the property of their respective owners.
About Siemens Business Services
October 5th, 1998
Contact person:
Ginger Kuenzel
Siemens Business Services USA
Tel.: 001 - 781313 - 3601
Siemens Business Services
Press Department
Norbert Strauch
Tel.: (+49) 89 636 43464
Berlin, Feb. 9 (Bloomberg) -- Siemens AG, Germany's biggest electrical engineering company, sees fiscal 1999 sales in its information and communication technology unit rising 8.5 percent as it introduces new products and services. The company also said it is seeking partnerships and acquisitions.
The unit's sales are expected to climb to 51 billion deutsche marks ($30 billion) in the period ending Sept. 30 from 47 billion marks in the same period a year earlier, the company said at a press conference. Siemens also said it is seeking partnerships and acquisitions in businesses ranging from mobile phones to computers to Internet technology.
Siemens combined its telecommunications and computer businesses into a single unit in October to tap growing demand for products that use technologies from both industries. Partnerships will be key to the company's efforts to wrest market share from industry leaders like Nokia Oyj, the No. 1 mobile phone company, analysts said.
''They've got ambitious goals, but they are too small to go it alone,'' said Hans Huff, an analyst at Bankgesellschaft Berlin AG, who rates the shares a ''buy.''
In the mobile phone business, for example, Siemens has a market share of just 2.2 percent. Pretax profit at the company's phone equipment operations tumbled 75 percent last year after a plan to focus on high-end mobile phones instead of cheaper consumer models failed.
Seeks Partnerships
The company now plans to expand into broadband and Internet applications in the mobile phone business through partnerships, mainly with U.S. companies and including those it already cooperates with, said Volker Jung, a member of the corporate executive committee.
Siemens said today it will expand its alliance with a $100 million joint venture with 3Com Corp. of the U.S. to develop products to link phones with office computer networks. Siemens also said it will broaden its product development venture with Canada's Newbridge Networks Corp., which makes computer network products.
Jung dismissed a suggestion that Siemens would sell its 50 percent stake in a Italtel, a telecommunications equipment venture with Telecom Italia SpA, Italtel.
''There is no way we will sell the whole 50 percent in Italtel,'' Jung said. Whether the company will sell part of its stake ''depends on our negotiations with Telecom Italia.''
Slow on Internet
Siemens has been slower than Nokia Oyj and Ericsson AB to expand into the Internet equipment arena, in part through acquisitions.
Siemens' computer operations, meanwhile, are ranked eighth in Europe with a market share of just over 4 percent.
The company will ask shareholders for permission to raise as much as $4.9 billion through the sale of new shares to fund acquisitions at its annual meeting next week.
''We have a lot of plans for partnerships, which will be announced in coming months,'' Jung said, noting that Siemens is also considering buying other companies.
Siemens also aims to win market share with new products that it unveiled today. Among the new products was a C25 dual- band mobile phone, which weighs 135 grams and is 117 millimeters long. The company expects to sell the phone, which also has a 100-hour standby mode, or a total of 300 minutes of talk, for 400 marks.
''We are broadening our mobile phone business by providing the full range of mobile phones from high-end to low-end,'' Jung said.
Fingertip Chip
The company also unveiled new applications for the Fingertip, a sensor microchip that verifies identities in a fraction of a second by scanning a fingertip. The technology is intended to replace personal identification numbers used in such things as automated cash machines.
Siemens also expects to boost its share in the business computer market with a new line of PCs, ranging from network computers to PCs for professionals and high-end workstations. The PCs have the latest Intel processor and chip set technologies, plus technical features such as system monitoring. The company forecast that the new line will boost its European PC market share to 9 percent by 2001 from 5 percent last year.
At the Cebit technology fair in March, Siemens will present its Powerline Communication technology, which supplies data and voice powerlines at more than 1 megabyte per second. It doesn't require additional wiring and makes Internet access possible at every power socket.
Future investments will focus on mobile phones, Internet applications, broadband and call center solutions, plus international expansion, the company said.
The company's shares slipped 0.60 euro to 61.66 in a falling market.
10:45:25 02/09/1999
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