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How Hitachi benefits from HP split and Dell-EMC merger

Saheli Sen Gupta | June 28, 2016
Vivekanand Venugopal of HDS speaks about how events like HP’s split and Dell buying EMC are actually empowering the company and how Hitachi is driving change in the industry.

Hitachi Data Systems claims a 40 percent growth in revenue and is branching out its portfolio by driving transformation inside the organization. Vivekanand Venugopal, vice president and general manager for India, speaks about how the company's portfolio has expanded beyond storage, servers and software.

Edited excerpts:

How does HP's split and EMC being acquired by Dell affect Hitachi's business? Is HPE a bigger and more focused competition for HDS?

HP's split actually creates big opportunity for us and is one of the reasons why customers have increased their investments with HDS. The HP separation indicates that these companies are reacting to the dictation of stakeholders and shareholders, which isn't a sustainable strategy.

We are seen as a stable organization that brings in a lot of value on a regular basis. Recently, HDS is initiating conversations to discuss the business outcomes of implementing certain technologies with CXOs and we're helping them discover new markets and customers.

EMC and Dell have been very valuable to the IT industry, but we need to look at the outcome of the merger. In the end, it is the customer who suffers the most. These business mergers affect the partners a lot as well. Dell and EMC belonged to two different partner ecosystems, who now have to face the cost-they don't know which products and solutions will remain.

HDS in the Indian market is growing at over 40 percent and our go-to-market strategies haven't changed at all. We have expanded our portfolio and relevance to customers.

How has your partner strategy evolved over the past year?

It's been quite a journey. HDS came to India as a business development organization and we had a fantastic partnership with companies like Sun Microsystems. Today, our partnership has expanded beyond storage and our system integrators are our number one growth pathway. We are seen as a stable and relevant partner because we reduce cash burn and help them achieve more.

We have also realized that SIs are not going to fulfill all the business projects in the Indian market. There are going to be a select bunch of partners who are highly focused. We now have regional system integrators who focus on government initiatives, defense modernization initiatives and specific industries like railways and smart cities.

We are now looking at helping our partners build new markets and become more profitable in existing markets. Our core focus is around transformation. Hitachi is looking at how partners can generate revenue around IoT and analytics.

"We will focus on IoT, analytics and operational technologies. In the end, we want to be recognised as a holistic IT company, beyond just servers, storage and software."-Vivekanand Venugopal, VP and GM India, HDS.

 

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