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{{Infobox Company |
{{Infobox Company |
company_name = Hitachi Data Systems |
company_name = Hitachi Data Systems |
company_type = [[A wholly owned subsidiary of Hitachi, Ltd]] ({{NYSE|HIT}}) |
company_type = [http://www.hds.com/corporate/about-hds/facts-at-a-glance/index.html A wholly owned subsidiary of Hitachi, Ltd] ({{NYSE|HIT}}) |
industry = [[Information storage hardware]]<br />[[Information storage software]]<br />[[Data storage devices]]<br />[[Computer systems]]<br />[[Computer hardware]]<br />[[Computer software]]<br />[[IT consulting]]<br />[[IT services]] |
industry = [[Information storage hardware]]<br />[[Information storage software]]<br />[[Data storage devices]]<br />[[Computer systems]]<br />[[Computer hardware]]<br />[[Computer software]]<br />[[IT consulting]]<br />[[IT services]] |
foundation = [http://www.hds.com/corporate/about-hds/facts-at-a-glance/index.html 1989] |
foundation = [http://www.hds.com/corporate/about-hds/facts-at-a-glance/index.html 1989] |

Revision as of 07:50, 6 September 2010

Hitachi Data Systems
Company typeA wholly owned subsidiary of Hitachi, Ltd (NYSEHIT)
IndustryInformation storage hardware
Information storage software
Data storage devices
Computer systems
Computer hardware
Computer software
IT consulting
IT services
Founded1989
Headquarters
Area served
Worldwide
Key people
Minoru Kosuge (Chairman)
Jack Domme (Chief Executive Officer)
Number of employees
4,200 employees in more than 100 coutries and region
WebsiteHDS.com

Hitachi Data Systems (HDS) is a company providing mid-range and high-end storage systems, software and services. It is a wholly owned subsidiary of Hitachi Ltd. and part of the Hitachi Information Systems & Telecommunications Division.[1]

Hitachi Data Systems sells through direct and indirect channels in more than 170 countries and regions. Its customers include over 50 percent of the Fortune 100 companies.[2]

Corporate history

The current Hitachi Data Systems (HDS) was founded in 1989 when Hitachi and Electronic Data Systems (EDS) acquired National Advanced Systems (NAS) from National Semiconductor and renamed it Hitachi Data Systems. But prior to that, the origins of the company had a history that stretched back to Itel, an early player in the mainframe market. Itel’s Computer Products Group sold National Semiconductors IBM compatible mainframes, and in 1979 National Semiconductor took it over and formed National Advanced Systems (NAS). NAS shifted from manufacturing mainframes and began marketing systems from Hitachi. Then, in 2000, Hitachi bought out EDS’s share, and HDS became a wholly owned subsidiary of Hitachi. For many years, HDS sold both Hitachi IBM-compatible mainframes and storage systems, but in 2000 exited the mainframe business and shifted its focus to enterprise storage. [3]

Origins as Itel

[4][5]Itel was an equipment leasing company founded in 1967 by Peter Redfield and Gary Friedman, initially focusing on leasing IBM mainframes. Through creative financial arrangements and investments, Itel was able to lease IBM mainframes to customers at costs below what customers would have paid IBM, making them the second to IBM itself in revenues due to leasing of IBM mainframes.

A joint venture between National Semiconductor and Hitachi formed in 1977 was contracted by Itel to manufacture IBM-compatible mainframes branded as Advanced Systems. In the face of initial success of having shipped 200 such systems and netting profits of $73 million, Itel had increased their investments and personnel to market their Advanced Systems brand and hence committed themselves to long term contracts with National Semiconductor and Hitachi. While Itel had not expected quick change in semiconductor technologies, Charlie Sporck, CEO of National Semiconductor, saw opportunities by tempting Itel to longer term commitments in response to request by Itel for lower prices in order to compete with IBM. Itel succumbed to commitment.

National Semiconductor's taking over Itel's Advanced Systems

Thereafter, news was abound that IBM was releasing a new technologically superior line of computers, to which customers responded by holding back purchases causing Itel's inventory to build up drastically. Even though Hitachi had agreed to Itel's request to cut back on shipment, National Semiconductor was adamant in implementing what the industry had termed as National's blackmailing of Itel. In 1979, Redfield was forced to resign as CEO, and National Semiconductor took over the whole of Itel Advanced Systems, including its sales and marketing team.

National renamed the division to National Advanced Systems (NAS), assembling and selling IBM-compatibles where the CPU was imported from Hitachi. National and Hitachi quite often depended on IBM's gradual and restrained roll-out of newer models to feed on IBM's technology and market share and hence NAS enjoyed occasional successes.

However, IBM had invested and obtained significant success in semiconductor technologies which enabled them to build more powerful computers at lower costs. They were also introducing the Unix operating system gradually into their computers. IBM had also introduced the Personal Computer. By 1985, competing technologies from Honeywell, Prime, NCR and Control Data were gradually being forced off the mainframe market. NAS, as well as Amdahl (the other IBM-compatible mainframe maker) was no exception to facing the technological and sales pressure from IBM.

In 1983, National Semiconductor and its subsidiary NAS was sued by IBM for $2.5 billion on charges of using computer technology stolen from IBM[6][7], as result of investigation by the United States Government into National's collaboration with Hitachi engaging in industrial espionage to obtained technology secrets from IBM, a case which illustrated the effects of desperation the onslaught of IBM technology had on its competitors.

In 1983, NAS ceased the manufacture of its own line of mainframes (which had Hitachi processors) but became a reseller of Hitachi's mainframe and data storage products.

HDS formed as joint venture of Hitachi and EDS

On February 28, 1989, National Semiconductor and Hitachi announced their agreement that Hitachi and EDS would jointly acquire NAS for $398 million in cash [8], of which Hitachi would own 80%. Memorex Telex and National had earlier, on January 10, 1989, announced plans on a joint venture "under which each company would own half of the unit and National would get $250 million plus four million shares of Memorex Telex". However, National proceeded to negotiate with Hitachi after Memorex's offer expired as National had felt that the Hitachi-EDS offer was a better deal as it entailed no further financial obligation or commitment on the part of National after the sale besides reaping a pre-tax profit of $200 million from the sale. By that time, Memorex Telex was able to arrange financing for the deal, but National had already accepted the Hitachi-EDS deal.

The acquisition was envisaged to provide Hitachi a better presence in the United States to compete with IBM. The entity was renamed Hitachi Data Systems.

Origins with Hitachi's mainframe and storage products

Hitachi was founded in 1910 by Odaira Namihei in the village of Hitachi/Hidachi in Ibaraki Prefecture, Japan, naming the company after the village (now a city) in which it was founded. Hitachi manufactured the mainframes and storage systems sold by NAS and subsequently by HDS.

Hitachi acquired EDS Stake

On 29 January 1999, Hitachi announced it would take over EDS' stake in HDS, appointing Jun Naruse as CEO of its new subsidiary. Naruse had been an engineer with the RAID Systems Division involved in storage systems development. Having total control of the company, Hitachi was able to infuse HDS with its corporate culture, ethics and practices. Rather than perpetuating the fad of three-letter acronyms, Hitachi from then on preferred projecting the name of its subsidiary as "Hitachi Data Systems".

Corporate affairs

The company has its corporate headquarters in Santa Clara, California and has business offices in the United States, Australia/New Zealand, Canada, Latin America, Europe, Middle East, and Africa. [9]

Products and services

Partial list of hardware products

  • Universal Storage Platform. The Hitachi Universal Storage Platform (USP-V & USP-VM) family is HDS’ high-end storage platform focused on consolidation for enterprise storage needs, including virtualization of internal and external heterogeneous into one pool.[10]
  • USP-V / USP-VM products are also OEMed and resold by Sun Microsystems as its Sun StorageTek 9990V & 9985V Systems[11] , and by HP as its HP StorageWorks XP 24000 / XP 20000 Systems[12]
  • Adaptable Modular Storage. The Hitachi Adaptable Modular Storage 2000 line is designed for fault tolerant mission critical storage needs and uses a symmetric active-active controller architecture.[13]
  • Hitachi High-performance NAS (HNAS). The Hitachi High-performance NAS line offers performance in scalability, Intelligent Tiering with dynamic data migration (Hierarchical storage management), and Cluster Namespace (CNS) for unified file administration.[14]

See also

References

  1. ^ "Hitachi Data Systems Corporation Company Profile". Yahoo Financel accessdate=2009-01-21. {{cite web}}: Missing pipe in: |publisher= (help)
  2. ^ "Microsoft Solutions Partners". Microsoft. Retrieved 2009-01-21.
  3. ^ "Vendor profile: Hustling Hitachi Data Systems has EMC in its sights". Computerworld Storage Network World Online. Retrieved 2009-01-21.
  4. ^ "National Semiconductor Corporation". Funding Universe.
  5. ^ "Sierra Adds Power to I.B.M". The New York Times. February 13, 1985.
  6. ^ AP (November 16, 1983). "I.B.M. SUIT MAY ASK $2.5 BILLION". The New York Times.
  7. ^ Peter Carey (May 22, 1983). "The selling of IBM secrets". Boca Raton News.
  8. ^ LAWRENCE M. FISHER (February 28, 1989). "Partners Buy A Computer Subsidiary". The New York Times.
  9. ^ "Hitachi Data Systems Corporation". Business Week. Retrieved 2008-04-17.
  10. ^ "Hitachi Universal Storage Plaform V". Hitachi Data Systems. Retrieved 2008-04-17.
  11. ^ "Sun Microsystem's website product page". Sun Microsystems. Retrieved 2009-10-19.
  12. ^ "Vendor profile: Hustling Hitachi Data Systems has EMC in its sights". Computerworld Storage Network World Online. Retrieved 2009-01-21.
  13. ^ "Hitachi AMS family overview" (PDF). Hitachi Data Systems. Retrieved 2008-04-17.
  14. ^ "Hitachi NAS platform overview". Hitachi Data Systems. Retrieved 2009-07-30.