In a groundbreaking strategic development, Hitachi, Ltd. is embarking on a journey of global reorganization to foster synergies between Operational Technology (OT) and IT and expanding business by utilizing generative AI. This move is set to bolster the digital capabilities and value chains within the organization, propelling the company's quest for innovation and contributing to its vision of digital transformation for a sustainable society.
On November 1, 2023, Hitachi Vantara LLC's digital solutions business will undergo a transformation as it is spun off into a new company, appropriately named Hitachi Digital Services. Based in the Silicon Valley city of Santa Clara, CA, this entity will be led by CEO Roger Lvin. Hitachi Digital Services is poised to offer a wide array of services, spanning cloud computing, data management, IoT technologies and the integration of OT and IT services.
Its mission is clear: to infuse digital value into various industries and drive Hitachi's unique synergy creation under Hitachi Digital, led by Jun Taniguchi, CEO of Hitachi Digital, and Gajen Kandiah, President of Hitachi Digital, and Executive Chairman of Hitachi Digital Services.
Strengthening Synergies with New Alignment
In addition, Hitachi is reorganizing its data infrastructure business. As the demand for data infrastructure continues to soar, Hitachi Vantara LLC is revamping its industry-leading storage and hybrid cloud-centric data infrastructure services portfolio. With headquarters in Santa Clara, CA, Hitachi Vantara LLC will be led by CEO Sheila Rohra. Prior to joining Hitachi Vantara earlier in 2023, Rohra was the SVP and GM of the Data Infrastructure business at HPE.
Looking further ahead, on April 1, 2024, Hitachi's IT Platform Products Management Division, responsible for business development, research and development, and production of data infrastructure in Japan, will be succeeded by the newly established Hitachi Vantara, Ltd., through an absorption-type split. Under the leadership of President Akinobu Shimada, the headquarters for Hitachi Vantara, Ltd. will be in Yokohama City, Kanagawa Prefecture, in Japan.
The reorganized Hitachi Vantara, Ltd. and Hitachi Vantara, LLC will harmonize their efforts, enhancing mutual management and seamlessly integrating global storage manufacturing and sales service structures. This integration will accelerate investments and development to address the surging opportunities in the infrastructure domain. Both companies are committed to bolstering Hitachi's technology strategy by providing hybrid cloud storage and a common platform for generative AI, under a strong unified brand.
The Enormous Impact of Generative AI
Keiji Kojima, President and CEO of Hitachi, Ltd, commented on the forces driving the reorganization: "We see the emergence of generative AI as a breakthrough with enormous impact. Hitachi is continuously strengthening its business structure with the aim of effectively utilizing generative AI to unleash the potential of the company.”
He adds that with this reorganization, Hitachi intends to actively invest in the data infrastructure necessary for AI training and in OT and IT Integration “to achieve company-wide digital transformation through the use of generative AI.”
Kojima notes that going forward, Hitachi, together with GlobalLogic, Hitachi Digital Services, and re-aligned Hitachi Vantara, will focus on solving various issues faced by its customers and society. It will do that 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."
The Realigned Hitachi Vantara: Building a Partner Ecosystem
The reorganization creates an integrated Japan-US operation for Hitachi Vantara. The Hitachi IT Platform Products Management Division and Hitachi Vantara have earned recognition for their virtualization and data protection technologies, deploying mission-critical storage solutions that effectively store and utilize vast volumes of data for businesses.
As the demand for data infrastructure escalates, Hitachi Vantara is focused the development of a hybrid cloud storage solution that combines on-premises and cloud computing. This approach ensures high performance, reliability, and cost advantages for businesses processing large-scale data. With the realignment, Hitachi Vantara aims to accelerate innovation, increase agility, and reduce time to market by combining its engineering, development, and manufacturing through an integrated Japan-U.S. operation.
The company also announced that it will build a partner ecosystem and promote the development of a common platform for generative AI through strategic alliances. These efforts will enhance Hitachi's technology value and further strengthen its data infrastructure services, including data management. This strategic move by Hitachi signifies a transformative step in its commitment to leveraging the power of AI.
The New Hitachi Digital Services: Supporting Cloud, IoT and Data Services
Hitachi Vantara's digital solutions business services have addressed a diverse range of digital modernization and multi-cloud needs. Hitachi Digital Services has been building a solid track record in harnessing synergies between OT and IT through joint development and implementation with Hitachi Energy, Hitachi Rail, and other Hitachi companies.
With a surging demand for AI and cloud services, the new Hitachi Digital Services will offer a unified operating model for cloud, data, IoT, and managed services. Its primary goal is to integrate digital capabilities into domain knowledge within OT fields such as energy and transportation, following 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.
Read the full announcement from Hitachi Vantara.
Image Credit: HItachi Vantara