Hitachi, NEC to join for software development

TOKYO: Japanese electronics giants Hitachi Ltd. and NEC Corp will work
together to develop software for corporate backbone systems for release early in
the next business year starting April, the Nihon Keizai Shimbun reported on
Saturday.

The companies, which already have an alliance in the dynamic random access
memory (DRAM) chip business, plan to supply existing software products to each
other, while developing the new network management software together to reduce
development time and costs, the paper said, without citing sources.

The software also comes with security functions, demand for which is rising
as many companies and government agencies step up protection of confidential
information, it said. The new product will be sold separately by each company,
the Nihon Keizai said.

No one at either company could be reached for comment. Japan's computer and
electronics conglomerates have been increasing cooperation at home and with
overseas companies to weather the information-technology slump and a global
economic slowdown.

NEC and Hitachi, as well as Japan's largest computer maker, Fujitsu Ltd.,
have cooperative arrangements with US software giant Microsoft Corp in computer
systems and software.

All three Japanese companies recently announced restructuring plans that
included hefty job cuts and a stepped-up shift of resources toward Japan's
growing market for computer software and services, and away from the loss-making
chip business.

(C) Reuters Limited.