Fujitsu Ltd. and Intel Corp. of the United States announced Friday they have agreed to jointly develop low-cost, high-performance Linux-based servers.

Intel will provide the core technology, including microprocessors, while Fujitsu will commercialize the servers, which they plan to market in 2005 under Fujitsu’s brand name, the firms said.

The partners plan to slash product prices by around one-third compared with current mainframes by using Intel’s latest microprocessor, they said.

The servers will be supplied mainly to government agencies and large corporations for use in their personnel management and financial settlement systems, the two firms said.

Fujitsu said it aims to chalk up 100 billion yen in sales of the new servers in 2006.

Japan’s public sector is expected to accelerate the installation of Linux-based information systems as part of plans to create an “electronic government.”

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