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Clearing up the questions: What does HDS have to do with the HGST acquisition?

by Hu Yoshida on Mar 11, 2011

My sister called my wife earlier this week and asked her if I still had a job. It is always disturbing when someone asks that question out of the blue.

She had read in the paper that Hitachi Global Storage Technologies (HGST) is being acquired by Western Digital and since she knew I worked in storage for Hitachi, she wondered what my future would be. Like most people who are not in the storage industry, she was not aware of the difference between Hitachi Data Systems and HGST. My wife explained that HGST is a separate company within Hitachi that makes the disks that go into Hitachi Data Systems storage systems and so it had no impact on my job.

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Hitachi Data Systems belongs to the Information and Telecommunication Systems Company of Hitachi Ltd, and HGST belongs to the Component and Devices segment. Hitachi Data Systems provides information technologies, services and solutions for our customers.  In close coordination with our colleagues in Japan, we build the hardware, software and solutions that help our customers manage their data. Alternatively, HGST develops and manufactures media like Hard Disks that go into consumer as well as IT storage systems. Today, Hitachi Data Systems dual sources the disks that go into our storage systems from HGST and Seagate. The only difference to us will be that our dual sources will now be Western Digital and Seagate.

So while HGST and Hitachi Data Systems have been companies within Hitachi Ltd, they are separate entities and Hitachi Data Systems customers will not see any impact of this acquisition on our products or services.

IDC published a Flash that clearly explains the differences between Hitachi Data Systems and HGST. Their Flash ends with this comment in regards to the pending acquisition of HGST by Western Digital.

HDD customers can take comfort knowing that there will be at least two HDD vendors with the scale and capital to make these investments, thus ensuring that lower cost HDD storage will be available in the future.

My sister can also take comfort in knowing I still have a job.

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Comments (1)

Sindhia Naidu on 14 Mar 2011 at 10:10 pm

We have multiple modular customers, that thought it was HDS. After point out the facts out Hitachi Corporation and HDS, their minds were put to ease on their current and future investment into HDS offerings.
Will not hurt HDS to put out a press release highlighting the facts.

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