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HDS Makes an Acquisition

by Hu Yoshida on Feb 9, 2007

Thomas Friedman in his book “The World is Flat” explains how great changes are taking place at warp speed and technology and communications are putting people all over the world in touch with one another. It is a very complex world in which a company can not be expert in every field. Therefore it is better to concentrate on your core competence and collaborate with others to leverage their competence. The decision to build or buy must be centered around your core competence.
 
That has been Hitachi’s focus for some time. In HDS we concentrate on our core competence which is storage and data services and we collaborate with other companies to leverage their competences. 
 
This week we announced the acquisition of Archivas to complement our storage and data services with content services. Instead of approaching this market by buying content  producers like Documentum or FileNet, we bought a content services company which we can integrate with our existing storage and data services. This approach enables content producers to offload their storage, data, and content services workload so that they can concentrate their resources on content management and scale beyond their current capabilities.

While this is the first HDS initiated acquisition, it is not the first acquisition for Hitachi’s storage group. HDS and Hitachi Ltd. work together and collaborate on acquisitions and strategic ventures. We jointly decide when it makes sense to build versus buy. Other Hitachi storage related acquisitions include IBM’s Disk Storage Business, which formed the basis for Hitachi Global Storage Technologies and Comstock Software, whose software formed the basis for Hitachi’s hot selling HiCommand Tuning Manager software.
The acquisition of Archivas  provides content services which complement our core competences around storage and data services. With content services we can collaborate with, rather than compete with, content  producers, like Documentum and FileNet.  

One of the best parts of this  aquisition is to be able to welcome Gary Voight and Andres Rodriguez and the Archivas team into the Hitachi Family.   Welcome aboard!

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Comments (2 )

Nigel on 13 Feb 2007 at 12:23 pm

Hi Hu,

Congratulations on the purchase. I must admit I was surprised as its a little out of character for the company but I think a step in the right direction.

Obviously HDS is very good at keeping its cards close to its chest but I would think similar moves for some of your other strategic partners (Diligent and BlueArc spring to mind) might be a good move.

Especially BlueArc, with HDS having had several attempts at NAS in the past this would really give customers more reassurance when looking at the companies NAS offerings.

Nigel

Tony Asaro on 19 Feb 2007 at 5:09 pm

Congratulations on the acquisition. This is a smart move for Hitachi. Also – I wanted to shine a spot light on Rob Mason, the VP of Engineering for Archivas. He is a great addition to the HDS team.

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