News

Hitachi Unveils Enterprise Strategy

• By Scott Bekker
• February 18, 1999

This initial phase of the new Hitachi Data Systems strategic direction is rooted in a broad spectrum of resources and addresses product, service, and distribution programs in four key areas: enterprise servers, enterprise storage, professional services and industry alliances.

In the enterprise server space the future will see a seamless fusing of the CMOS for Hitachi Data Systems Pilot Series and the Advanced CMOS ECL (ACE) for the Hitachi Data Systems Skyline Series. These S/390-compatible processors will be complemented by NT and UNIX servers.

All enterprise servers, regardless of operating system, will be designed in conjunction with surveyed customer requirements and will have compressed product cycles.

The Hitachi Data Networking Architecture (DNA) provides the overall structure for implementing Hitachi's storage strategy, aimed at bringing storage and network protocols together in a way that will enable customers to access their data on any computer, any time, anywhere. With this architecture, the company hopes to deliver open solutions in many environments, including Storage Area Networks (SANs) and Network Attached Storage (NAS). Key to these solutions is a growing number of industry alliances in areas such as networking and communications.

A major portion of a $300 million investment funding will be applied to the Professional Services area which will support significant growth in new skills and core competencies. Hitachi will also widen its focus on providing integration services that leverage its key partners such as Oracle, SAP, Microsoft, Cisco, and Computer Associates.

Aligning itself with such industry leaders Hitachi is placing emphasis on developing enterprise-wide solutions that optimize the capabilities and unique value of each alliance relationship.

The new strategy is closely tied to Hitachi, Ltd.'s decision to designate Hitachi Data Systems as its premiere vehicle for delivering enterprise management solutions to the international corporate marketplace.

Several key steps have been taken in the last 60 days to finish building and refining this phase of the strategy. Hitachi, Ltd. and Electronic Data Systems (EDS) -- Hitachi Data Systems' two shareholders -- agreed to Hitachi Data Systems acquiring EDS' shareholding in Hitachi Data Systems, thereby making Hitachi, Ltd. the sole shareholder.

Hitachi, Ltd. also announced it will merge Hitachi Data Systems' operations with those of sister company Hitachi PC and Hitachi, Ltd. has invested the additional $300 million in Hitachi Data Systems.
"The stage is now set for us to become a true enterprise solutions provider," says Hitachi Data Systems Chairman and CEO Yoshihiro Koshimizu. "We have evolved from being primarily a hardware vendor into a genuine solutions provider. -- Brian Ploskina, Assistant Editor