TOKYO - NTT Data Corp
and NTT Comware Corp plan to buy interests in VA Linux
Systems Japan, a Sumitomo Corp unit that specializes in
creating Linux operating systems and related software,
with a goal of co-developing Linux-based
NTT Data and NTT
Comware will pay 50 million yen (US$472,000) and 140
million yen to acquire 5-percent and 20-percent stakes,
respectively, in VA Linux. The deal will be the first
sizable investment an NTT group firm will make in a
developer of open-source software.
As part of
the tie-up, the NTT group companies plan to dispatch
engineers to VA Linux.
In addition, capital
participation by the Nippon Telegraph and Telephone Corp
group firms will lower Sumitomo's stake in VA Linux from
70 percent to 56 percent.
NTT Data is hoping to
sign up more corporate customers by utilizing the Linux
freeware and by lowering its system development costs.
The firm's client list consists mainly of central
government agencies and financial institutions.
NTT Comware is currently developing Linux-based
telecommunications infrastructure and core software and
plans to commercialize them in the next three years.
Apr 7, 2004
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