Acquisition of Pyramid by Siemens Nixdorf: Strategic Move with Global Implications

Strategic Insights -

Pyramid Technology, a leading provider of scalable enterprise servers, has been acquired by Siemens Nixdorf Information Systems, a subsidiary of the electronics giant Siemens AG. The acquisition, completed on an unspecified date, forms a powerful partnership that brings together Pyramid's entrepreneurial spirit and technology leadership with Siemens Nixdorf's worldwide presence and resources. As a result, the combined entity, Pyramid Technology -- A Siemens Nixdorf Company, will offer a broad range of commercial UNIX products, expanding its sales force, and enhancing its position in the open enterprise computing category.

Key Takeaways:

  • The acquisition positions Pyramid Technology as a significant player in the commercial open systems solutions market, competing head-to-head with IBM, AT&T, H-P, DEC, and others.
  • Aggressive growth plans are in place to expand R&D spending and the sales force, with a goal of achieving $2 billion in North American sales within five years.
  • Pyramid will benefit from Siemens' vast procurement capabilities and its office presence in 45 countries worldwide, enhancing its ability to deliver scalable enterprise computing solutions.
  • The combined entity will leverage Pyramid's core technical strengths and Silicon Valley culture to realize the synergies and competitive advantages of the global Siemens Nixdorf organization.
  • The Reliant(R) RM1000 Parallel Server, jointly announced by Pyramid and SNI, is a scalable system that integrates on-line transaction processing with data warehousing and decision support applications.
  • The system has received enthusiastic market reception, with over 40 independent software vendors announcing support for the platform, including Information Builders, Informix, Oracle, SAP, and SAS.

Statistics:

  • Siemens AG has annual sales of $54.6 billion.
  • Pyramid Technology has a 14-year history of providing leading-edge server solutions.
  • The combined entity has a presence in 45 countries and more than 120,000 UNIX system installations worldwide.
  • The combined mid-range systems operations represent over $1.6 billion in sales worldwide, making the combined company the largest provider of systems in the mid-range UNIX server market (Source: IDC).
  • The Reliant(R) RM1000 Parallel Server can scale up to hundreds of processors and over 10 terabytes of on-line information.

Sources:

  • Pyramid Technology -- PRNewswire, March 14, 1995
  • Pyramid Technology -- "Pyramid Technology -- A Siemens Nixdorf Company"
  • Source (IDC) - not explicitly provided; possible inference from context, but can't be confirmed without additional information.