Hitachi Data Systems History

Hitachi Data Systems

Type	A wholly owned subsidiary of Hitachi, Ltd (: HIT)
Industry	Computer data storage systems Data storage software Computer systems Computer hardware Computer software IT consulting IT services
Founded	1989
Headquarters	Santa Clara, California, U.S.
Key people	Ryuichi Otsuki (Chief Executive Officer)
Number of employees	6,300 employees in more than 100 countries and regions
Website	HDS.com

Hitachi Data Systems (HDS) is a company that provides modular mid-range and high-end computer data 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.

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. In 1999, 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.

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.