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May 26, 1987

IBM JAPAN HAS JOINT VENTURES WITH SYSTEM FRONTIER, ABC CORP AND JAPAN SOFTWARE DEVELOPMENT CORP

By CBR Staff Writer

IBM probably gets less bang for its software development buck than any other computer company, and just as its US parent has had to admit defeat on developing its own banking software and gone to Hogan Systems Inc, IBM Japan has been driven into forming joint ventures with two software houses to get itself into the regional banking market in Japan: one is with System Frontier, the systems development subsidary of the Hokkaidoo Takushoku Bank and IBM will invest $500,000 for a 35% stake; the other venture is with two independent software houses, ABC Corp and Japan Software Development Corp, and this one will develop software and provide technical services to regional banks and savings institutions; although IBM is very strong in the 10 large city banks and Big Four stockbrokers, Japanese manufacturers have the advantage in the regional banks and smaller financial institutions; the packages to be developed will typically be for System 38.

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