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The HDS Story in 3D

F.Y. Teng | Dec. 9, 2010
A little about how Hitachi Data Systemss three-dimensional scaling platform and management software could change the data centre as we know it today.

When did the deployment start and do you have specific targets with respect to the pickup of this platform?
We started in the very beginning of this quarter [at press time, HDSs Q2 2010]. And yes, we do have very specific targets. If you look at HDS over the last four quarters, we have delivered four straight quarters of record revenue. Our fiscal year begins on April 1. Now, if you look at our third quarter in 2009, it was the best third quarter in our history. If you look at our fourth quarter in 2009, it was the best fourth quarter in our history. Our first quarter in 2010 was the best in our history. And so too should the second.

We have an annual operating plan that expects double digit growth. We have planned to exceed that operating plan by as much as 20 percent in the next couple quarters [Q3 and Q4 2010], so the volume of units that we will have available for the market place will be very significant.

The other thing that we think is going to be a benefit for us is over the last nine quarters we have generated more than 200 new customers each quarter. The installed base of clients we have is much broader than it was two years ago, and all of those are potential for upgrading their technologies to take advantage of the new features, and this is going to be a far more competitive box in the marketplace. So we feel confident that theres going to be a real appetite from our clients.

Also, were very optimistic that well continue to gain new clients. Some of the new clients weve captured round the world are a number of very big names. They include Abbott Labs, Yahoo, Loblaw (which is the largest retailer in Canada) and many new clients, such as the Ministry of Education, Science and Technology of Korea, IT services and solutions providers Logica and Siemens, as well as financial houses Lloyds Bank and Nomura. Recently, Nokia moved over from our competitor to us. We have been very successful in getting clients to move from our competitors technology to Hitachi technology. The combination of a great technology and a great solution set for our installed base with real quantifiable economic impact, along with an even more competitive product than weve had in the last few years, and the momentum weve had in the last few years to grow faster than our competitorsthese all lead us to believe that we can grow even faster than our annual operating plans, which has seen double digit growth.

What is the place of these offerings within HDSs overall strategy?
If you look at Hitachi Corporation, were a nearly hundred billion dollar company. About 19 percent of our revenue comes from technology. Were in the technology division and we are the fastest growing segment in that division. HDS has been a very successful component of the Hitachi business. We recently had a meeting with the CEO of Hitachi Ltd and hes very complimentary of our go to market strategy.


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