Global reorganization to strengthen synergies leveraging OT and IT

Global reorganization to strengthen synergies leveraging OT and IT

Accelerate Growth and Business Expansion through the Power of Generative AI by Hitachi Vantara Reorganization, and Company Split of the IT products business

                     Hitachi’s Digital value chain solution after reorganization

Tokyo, October 27, 2023 – Hitachi, Ltd. (TSE: 6501, “Hitachi”) is reorganizing its global organizations to further accelerate the creation of synergies with OT (Operational Technology) fields such as energy, transportation, and industry, while strengthening digital capabilities and value chains in the Lumada co-creation cycle^*1. With the new organizations, Hitachi will promote company-wide digital transformation through the utilization of rapidly evolving generative AI and contribute to the realization of a sustainable society.

Effective November 1, 2023, Hitachi Vantara LLC’s digital solutions business will be spun off into a new company, Hitachi Digital Services led by CEO Roger Lvin. Hitachi Digital Services will offer services in cloud, data, IoT technologies and OT and IT integration services. Hitachi Digital Services will provide digital value to each industry and drive Hitachi’s unique synergy creation under Hitachi Digital^*2 led by Jun Taniguchi, CEO of Hitachi Digital and Gajen Kandiah, President of Hitachi Digital, and Executive Chairman of Hitachi Digital Services.

In addition, to meet the growing demand for data infrastructure, Hitachi Vantara LLC led by CEO Sheila Rohra, will reorganize to further strengthen its industry-leading storage and hybrid cloud-centric data Infrastructure services portfolio.

Furthermore, as of April 1, 2024, Hitachi’s IT Platform Products Management Division, which has been responsible for business development, research/development, and production of data infrastructure in Japan, will be succeeded by the newly established Hitachi Vantara, Ltd. (President: Akinobu Shimada) through an absorption-type split.

Hitachi Vantara, Ltd. and Hitachi Vantara LLC will strengthen mutual management as the re-aligned Hitachi Vantara and further integrate global storage manufacturing and sales, service structure to accelerate investments and development to address the rapid rise in infrastructure opportunities. The companies will support Hitachi’s technology strategy by providing hybrid cloud storage and common platform for Generative AI under a strong unified brand.

Comment from Keiji Kojima, President and CEO of Hitachi, Ltd.

“We see the emergence of generative AI as a breakthrough with enormous impact. Hitachi is continuously strengthening its business structure, including human resource development and policy development, with the aim of effectively utilizing generative AI to unleash the potential of the company. Through this reorganization, Hitachi will actively invest in the data infrastructure necessary for AI training and in OT and IT Integration, which Hitachi has domain knowledge, to achieve company-wide digital transformation through the use of generative AI. Going forward, Hitachi, together with GlobalLogic, Hitachi Digital Services and re-aligned Hitachi Vantara, will contribute to solving various issues faced by our customers and society by accumulating domain knowledge and data from a wide range of business fields, including energy and transportation, which are our strengths, in an enhanced and secure environment, while integrating digital assets such as generative AI.”

 About the features of each company to be established through the reorganization

• About Hitachi Digital Services

Hitachi Vantara’s digital solutions business excels in optimizing business environments with cloud operating systems and round-the-clock global managed services addressing diverse digital modernization and multi-cloud needs. Leveraging these digital strengths, Hitachi Digital Services has been building a track record in OT and IT synergies through joint development and implementation with Hitachi Energy, Hitachi Rail and other Hitachi companies.

To meet rising AI and cloud demand, Hitachi Digital Services is being established to offer a unified operating model for cloud, data, IoT and managed services, and to integrate digital capability into domain knowledge within OT fields such as energy, transportation, and industry under Hitachi Digital’s strategy.

Collaborating with Hitachi group businesses, including GlobalLogic, Hitachi Digital Services will support enterprise transformation through automation of business processes and generative AI.

２．About the re-aligned Hitachi Vantara

Hitachi IT Platform Products Management Division and Hitachi Vantara have honed their world-class technologies such as virtualization and data protection as they deploy high-performance, high-reliability mission-critical storage solutions that store and utilize large volumes of data for businesses.

To meet the current and rapidly growing demand for data infrastructure, with leveraging the strengths of these unique technologies, Hitachi Vantara is pioneering the development of a hybrid cloud storage that seamlessly combines on-premises and cloud computing to achieve safety, high performance and reliability, and cost advantage in processing mission-critical large-scale data for complex business requirements. To quickly address these needs, the re-aligned Hitachi Vantara will accelerate innovation, increase agility, and reduce time to market by combining world-class engineering, development, and manufacturing through an integrated Japan-U.S. operation.

Furthermore, the company will build a partner ecosystem and promote the development of common platform for generative AI through strategic alliances that will enhance Hitachi’s technology value and further strengthen its data Infrastructure services including data management.

*1 About the Lumada co-creation approach

https://www.hitachi.com/products/it/lumada/global/en/about/index.html

*2 About Hitachi Digital which was established in North America in April 2022:

https://www.hitachi.com/New/cnews/month/2022/04/220401a.html

Overview of each companies

１．Overview of Hitachi Digital Services

２. Overview of re-aligned Hitachi Vantara

On April 1, 2024, Hitachi’s IT Platform Products Management Division will be spun off and will start operation as Hitachi Vantara, Ltd., establishing an integrated manufacturing and sales system with Hitachi Vantara LLC.
Both companies will strengthen mutual management and move to globally integrated operations.

Overview of Hitachi Vantara LLC

Overview of Hitachi Vantara, Ltd. (Tentative)

About Hitachi, Ltd.

Hitachi drives Social Innovation Business, creating a sustainable society through the use of data and technology. We solve customers’ and society’s challenges with Lumada solutions leveraging IT, OT (Operational Technology) and products. Hitachi operates under the business structure of “Digital Systems & Services” – supporting our customers’ digital transformation; “Green Energy & Mobility” – contributing to a decarbonized society through energy and railway systems, and “Connective Industries” – connecting products through digital technology to provide solutions in various industries. Driven by Digital, Green, and Innovation, we aim for growth through co-creation with our customers. The company’s consolidated revenues for fiscal year 2022 (ended March 31, 2023) totaled 10,881.1 billion yen, with 696 consolidated subsidiaries and approximately 320,000 employees worldwide. For more information on Hitachi, please visit the company’s website at https://www.hitachi.com.