Top company by employee – 63 – Hitachi Data Systems – California US
Industry: Information Technology – Storage/Data Management
Previous rank: 86
2011 revenue ($ millions): $3,800
What makes it so great?
Hitachi pays quarterly bonuses based on both individual and corporate performance that can range from one-third to two-thirds of base salary.
Santa Clara, CA
|Type||A wholly owned subsidiary of Hitachi, Ltd] (NYSE: HIT)|
|Industry||Computer data storagesystems
Data storage software
|Headquarters||Santa Clara, California, U.S.|
|Key people||Jack Domme (Chief Executive Officer)|
|Employees||5,900 employees in more than 100 countries and regions|
Hitachi Data Systems (HDS) is a company that provides modular 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.
In 2010 Hitachi Data Systems sold through direct and indirect channels in more than 170 countries and regions. Its customers included over half of the Fortune 100 companies at the time.
||It has been suggested that Hitachi Data Systems History be merged into this article. (Discuss) Proposed since June 2013.|
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 before that the company’s history stretches back to Itel, an early mainframe computer manufacturer.
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 second to IBM itself in revenues.
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 agreed.
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 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. Meanwhile, the mainframe market itself was in decline as mini- and microcomputers, and the UNIX operating system gained popularity. Mainframe makers such as Sperry, Honeywell, Burroughs, NCR and Control Data were gradually being forced out of 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 fact, National Semiconductor and its subsidiary NAS were sued in 1983 by IBM for $2.5 billion on charges of using computer technology secrets stolen from IBM, as result of an investigation by the United States Government into National’s collaboration with Hitachi in engaging in industrial espionage to obtain technology secrets from IBM. Hitachi settled with IBM and licensed the mainframe operating system software from IBM. In 1983, NAS ceased the manufacture of its own line of mainframes (which had Hitachi processors) and became a reseller of Hitachi’s mainframe and data storage products.
On February 28, 1989, National Semiconductor and Hitachi announced their agreement that Hitachi and Electronic Data Systems (EDS) would jointly acquire NAS for $398 million in cash , 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 (HDS).
On anuary 29, 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 Hitachi Data Systems with its corporate culture, ethics and practices.
On April 6, 2000 Hitachi Data Systems announced a re-organization to focus on storage systems rather than mainframes. Shortly thereafter (June 26, 2000), the first HDS storage product was unveiled, the Freedom Storage Lightning 9900, featuring the Hi-Star crossbar switched architecture to interconnect memory, disks, servers and other external devices instead of the traditional bus architecture. In addition to HDS sales, HP OEM’d  and Sun resold  the Lightning 9900 and succeeding generations, which featured additional advanced capabilities such as virtualization of external Hitachi and third-party storage systems to form storage pools. In January 2001 HDS announced the Thunder 9200, a mid-range modular storage system aimed at the small and medium business market, sold mainly through resellers. Hitachi Data Systems high-end and mid-range modular storage systems were complemented by software for storage management, content management, business continuity, replication, data protection, and IT operations. In 2002 Hitachi acquired Comstock Systems Corp, and analysts estimated 35% market share.
On February 6, 2007 Hitachi Data Systems acquired Archivas, provider digital archiving and content management products.
On August 20, 2010 Hitachi Data Systems acquired the intellectual property and core engineering team of ParaScale, developer of storage software which uses a clustered file system on multiple Linux servers to present a single file-storage appliance.
On September 7, 2011 Hitachi Data Systems acquired BlueArc which developed a clustered network attached storage product. It was estimated HDS had been responsible for about half of BlueArc’s sales in 2010.>
On February 13, 2012 Hitachi Data Systems acquired Shoden Data Systems, a provider of data center technology in South Africa and across the sub-Saharan African continent.
The culture of Hitachi Data Systems is influenced by the founding values of the parent company, Hitachi Ltd., those being Wa (harmony, trust, and respect), Makoto (integrity, sincerity, honesty), and Kaitakusha-seishin (pioneering spirit and challenge). Hitachi Data Systems was recognized by Ethisphere Magazine in 2011 as one of the World’s Most Ethical Companies. The company has active Corporate Social Responsibility (CSR) programs including a means for employees to recommend and request a grant for a non-profit organization. Hitachi Data Systems works with the Hitachi Foundation and other Hitachi entities to support philanthropic enterprises around the world.
Hitachi Data Systems participates in “Best Places to Work" lists globally, achieving a position on FORTUNE Magazine’s “100 Best Companies to Work For” list in 2012 (ranking at No. 86) and was ranked No. 8 in FORTUNE’s list of top-paying companies. Chief Executive Magazine gave HDS a ranking of No. 16 in its “40 Best Companies for Leaders” list for 2012. Hitachi Data Systems has been named to the top 10 best places to work in the San Francisco Bay Area for the past three consecutive years, and was recognized among the “Best Companies to Work For" in France and Poland in 2011. In 2010 Hitachi Data Systems was accredited by the Best Companies organization in the United Kingdom.
Hitachi Data Systems has four types of partners: Technology, Global Systems Integrators, Hitachi TrueNorth Partners, and Hitachi TrueNorth Advisor Partners.