Editorial: A Year of Living Profitably

The 112-year history of Unisys is one of creativity, diversification and its ability to adopt to the changing demands from corporations and governments for technology.

Is Unisys a trailblazing behemoth? Not quite. But who really wants to be? Is it a force with which to be reckoned? I think so. Is it back on the radar screen? You got it. Clearly, the past 12 months saw Unisys belie any doubts that its comeback was just a passing fad. By positioning products like ClearPath servers, which combine mainframe, Windows NT and UNIX systems on a single platform, in the forefront of its offerings, Unisys propelled itself along the network-computing path.

Financially, this year saw the continued momentum at Unisys allowing it to retire all 28.4 million shares of Unisys preferred stock, eliminating $106 million in annual dividend costs. Overall, Unisys cut its debt by $1.2 billion in less than two years.

Without a doubt, Unisys has undergone major transformations, reorganizations and consolidations. Unisys followed its own advice and outsourced two of its major production endeavors. Unisys contracted IBM to manufacture the CMOS microprocessors for its NX (A-Series compatible) and IX (2200 compatible) ClearPath offerings. Unisys then partnered with Hewlett-Packard to take over the manufacturing of its PC line.

Speaking of partners, Unisys understands that "to be successful you need a strong partner." And although we’ve seen a relationship snafu or two, again Unisys heeds its own advice. Throughout the world, Unisys has developed alliances with companies that complement and enhance its own solutions, services and technology. The Unisys partner portfolio includes industry-leading providers like Intel, Microsoft, SCO, Computer Associates, BEA, Attachmate, Compaq, Oracle, SAP, PeopleSoft, Sun and HP.

Throughout the year, Unisys moved forward in the consulting and services arena, which now accounts for about 70 percent of its revenues, while gaining ground in systems integration and outsourcing within the government and financial industries.

Finally, after concentrating on services, Unisys returned to the system market with its Aquanta ES5085 and ClearPath HMP IX6800 servers. And with ClearPath remaining a viable solution for many Unisys customers, which incidentally total just over 10 percent of the mainframe’s total market, along with its cellular multiprocessor strategy, Unisys continues to keep most existing users, while taking on a respectable segment of the booming UNIX and NT arena.

Now, in more than 100 countries around the world, Unisys boasts solutions in e-business, Windows NT and 2000 integration, desktop management, network solutions, systems integration, imaging workflow, outsourcing, Web enabling, security, data access and systems management.

And in 2000, Unisys’ redefined leadership role in services, as well as in designing and delivering enterprise business solutions, will drive the company to prosper and further stabilize itself – as both a profitable business entity, and as a provider of quality, reliable systems, service and support.