Triton and Fujitsu Transaction Solutions say their worldwide joint software licensing agreement, an anomaly in the normally proprietary ATM industry, will provide more choice for small to mid-size financial institutions and retail deployers.
April 26, 2004
Most major ATM manufacturers hope to widen their traditional customer base with their multi-vendor software, by luring new users that own different makes and models of ATMs.
Fujitsu Transaction Solutions has attracted the most non-traditional customer of all, thanks to an unusual deal with Tritonin which the rival manufacturer will use Fujitsu's Prism software in its new generation of Windows-based ATMs.
The two companies say the worldwide joint licensing agreement, an anomaly in the normally proprietary ATM industry, will provide more choice for small to mid-size financial institutions and retail deployers.
Brian Kett, Triton's president, called the agreement "an excellent example of how two global companies can capitalize on their existing strengths to provide retail customers and financial institutions with the most cost-effective ATM solutions."
Based on early indicators, Kett said, Triton believes that its opportunity to sell ATMs to financial institutions "will be more substantial than expected." Triton just turned in its best sales performance ever in 2004's first quarter and believes its two newest ATM models will account for 15 percent to 20 percent of its overall sales by the end of the year, he said.
Speed to market
Using Fujitsu's Prism, which employs a WOSA-XFS interface and features standard Diebold 912 transaction emulation, allows Triton to bring a full solution to market quicker than it could if it developed its own software, Kett said.
"If we want to be a full-service provider for financial institutions, we have to offer solutions that are acceptable to the broadest number of participants in that market segment," he said. "Prism is a known product within the financial institution market, one that has been well received by a number of substantial companies."
Prism has already been certified by most major transaction processors and EFT networks. While it will have to be re-certified on Triton equipment, the process should go smoothly based upon its existing certifications. While Triton will develop new applications, Prism's core kernel will remain the same.
In fact, a team of software developers from Fujitsu will join Triton, based out of a new office in San Diego, Calif., to continue ongoing development of Prism in support of Triton's initiatives.
Fujitsu will retain a core group of developers, both to develop new features for Fujitsu's 8000 Series of ATMs and to support existing customers, said Kent Schrock, director of financial services marketing for Fujitsu Transaction Solutions.
The Fujitsu developers will also continue to explore new opportunities such as the company's recent deal with Regal Entertainment Group, in which Fujitsu developed a ticket dispensing application for 300 ATMs installed in theaters owned by the cinema chain. Fujitsu also recently purchased the self-checkout business of Optimal Robotics for $35 million. The Montreal-based company sells self-checkout systems and related services under the U-Scan brand.
"There are some interesting self-service kiosk opportunities in retail environments such as fast food and petroleum," Schrock said.
Japan-based Fujitsu Limited earlier this month, in conjunction with NCR, rolled out a new ATM cash deposit and recycling module, the first product developed under a strategic alliance in which the companies are conducting collaborative research and development of new products and technology.
Fujitsu is manufacturing the module, which will be incorporated in both companies' products. Each company will distribute, sell and service its own products. Software is excluded in the NCR agreement, Schrock said. "There wasn't any synergy there."
The Triton deal "validates Prism as a major player in the ATM emulation market," Schrock said. "Triton did a thorough due diligence, talking not only to customers but also to the networks."
More sales, more service
Fujitsu's 14 current resellers will have the opportunity to resell and service the new Triton products in addition to Fujitsu's 8000 Series.
Schrock said the Triton products are a "complement rather than a competitor" to Fujitsu's 8000 Series. "Triton is the market leader in the retail space, and we don't have a low-end ATM to compete in the off-premise market or when a bid calls for a lower-end ATM."
He added, "We'll still have our core customers that require ATMs with a higher functionality, but now our business partners will have the opportunity to sell best-of-breed ATMs at both the high end and the low end - and they'll have the same software."
Kett said the addition of some or all of Fujitsu's resellers will beef up Triton's current sales channel of about a dozen VARs (value added resellers). It will help Triton "fill some of our geographic gaps, both nationally and internationally, without taking anything away from Triton's current partners."
It will also boost Triton's capabilities in the service area, which is becoming increasingly important to ATM owners, Kett said.
"The whole service area is evolving not unlike software, where the end user doesn't necessarily want to be held ransom to one supplier of a solution," he said. "Customers have more choices today than they had a year ago, and they'll have more as we continue to develop that channel."
Serviceability has always been a strong selling point for Triton ATMs, Kett added.
"As organizations like ourselves bring products to market that are more service friendly and require less preventative maintenance, it will lower the total cost of ownership and give ATM owners more choices," he said. "That's been a key part of our success on the retail side, and we see no reason why this approach won't work just as well on the banking side."
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