Hitachi Vantara Reports Significant Revenue Growth in Storage Market

News provided by

Sep 24, 2024, 09:00 ET

U.S. leads the way with more than 50% quarter-over-quarter growth; global partners see 106% attributable operating profit

The launch of Virtual Storage Platform One for Block, File, and SDS Cloud drove customer demand for simplified and streamlined hybrid cloud management

SANTA CLARA, Calif., Sept. 24, 2024 /PRNewswire/ -- Hitachi Vantara, the data storage, infrastructure, and hybrid cloud management subsidiary of Hitachi, Ltd. (TSE: 6501) today announced significant growth in its data storage business in the first quarter of the company's 2024 fiscal year (ended June 30). In particular, the company saw a 27% increase of quarter-over-quarter (Q/Q) product revenue growth compared to Q1 FY23, exceeding the market CAGR of 11.31%. The growth was even more pronounced in the United States, which saw an increase of 54% Q/Q compared to the previous year.

For more information on Hitachi Vantara's data storage and hybrid cloud offerings, visit: https://www.hitachivantara.com/en-us/products/storage-platforms

The continued success builds on Hitachi Vantara's broader growth in the overall storage market. According to IDC's "Worldwide External Enterprise Storage Systems Market Shares, 2023" (published May 2024), Hitachi Vantara achieved a +9.2% growth in revenue in the external enterprise storage system market in calendar year 2023 compared to 2022, which was the second highest among the top eight companies evaluated in the report.

These results are especially notable given the business challenges of managing complex data environments are growing rapidly due to the acceleration of AI and its impact on data infrastructure. One recent survey found that businesses expect the amount of data they use to double between 2023 and 2025. The report also found that six in 10 business leaders are already overwhelmed by the amount of data they store, and 75% are concerned that their current infrastructure will be unable to scale for the future.

"Businesses have long recognized the importance of future-proofing their infrastructure, but the rapid rise of GenAI has escalated this into an urgent priority," said Neil McGowan, Chief Revenue Officer for Hitachi Vantara. "As customer demands evolve and IT departments struggle to keep pace, Hitachi Vantara is empowering businesses to seize this pivotal moment. Our infrastructure portfolio, built for unmatched scalability, reliability, and performance, empowers customers to swiftly transform data into tangible financial gains, leverage automation to optimize processes, and flexibly scale their infrastructure, ensuring significant cost savings and an enhanced overall experience."

The Launch of a New, Sustainable Hybrid Cloud Data Platform
Much of this success has been driven by the recent availability of Hitachi Vantara's new unified, hybrid cloud data platform, Hitachi Virtual Storage Platform One. Despite only having launched in April, Virtual Storage Platform One already boasts more than 65 unique customer deals to date. Virtual Storage Platform One simplifies infrastructure for mission critical applications, with a focus on data availability and strong data resiliency and reliability measures including mitigation of risks such as downtime, productivity losses, and security threats and is available for Block, SDS Cloud, and File storage.

Notably, Virtual Storage Platform One Block also features Dynamic Carbon Reduction technology, reducing energy consumption by switching CPUs into eco-mode during periods of low activity. "Always on compression" allows the system to switch from inline data reduction to post processing which further reduces energy consumption and contributes to a lower CO2 footprint by as much as 30-40%. The company recently announced that ENERGY STAR^® rated Hitachi Vantara's storage solutions with all three of the top spots in its rankings for performance and energy efficiency in the ENERGY STAR NVSS Disk Online 4 category, and the company was recognized with a Gold Medal rating for Sustainability from EcoVadis, a globally recognized leader in assessing corporate social responsibility and sustainability practices.

"Hitachi Vantara's ability to develop a data infrastructure environment that is extremely reliable was a crucial factor in the selection process of our infrastructure modernization partners," said Alexandre Simcsik, Datacenter Operations Director, Cirion Technologies. "With Virtual Storage Platform One, we can easily scale as our customer demand grows without disruption or downtime so that we can continue to deliver on the business outcomes that our customers demand."

Sharing Success with Partners
Hitachi Vantara's partner network also saw substantial growth with Virtual Storage Platform One in the first quarter of 2024, reporting 106% growth in annual operating profit and 38% year over year revenue growth. The mid-sized market segment, in particular, leaned on Virtual Storage Platform One's enhanced features to transform the data storage experience.

"Partner success is integral to our growth, and the remarkable results from Virtual Storage Platform One underscore this perfectly," said Kimberly King, senior vice president of strategic partners and alliances at Hitachi Vantara. "Virtual Storage Platform One not only advances our partner program attributes of trust, profit, and sustainability, but it also empowers our partners to enhance their value propositions and achieve substantial growth. By leveraging our advanced, reliable, and scalable storage solutions, we are committed to supporting their success and helping them exceed their customers' expectations."

The announcement comes after Hitachi Vantara previously announced the completion of a strategic realignment designed to accelerate the company's growth plan with a focus on hybrid cloud and generative AI. Hitachi Vantara commands extensive infrastructure and data storage experience across hybrid cloud environments, as well as a shared focus on collaboration to drive meaningful business outcomes for the company's customers.

For more information on Hitachi Vantara's data storage, infrastructure, and hybrid cloud offerings, please visit: https://www.hitachivantara.com/en-us/products/storage-platforms.

Additional Resources

Connect With Hitachi Vantara

About Hitachi Vantara
Hitachi Vantara is transforming the way data fuels innovation. A wholly owned subsidiary of Hitachi Ltd., Hitachi Vantara provides the data foundation the world's leading innovators rely on. Through data storage, infrastructure systems, cloud management and digital expertise, the company helps customers build the foundation for sustainable business growth. To learn more, visit www.hitachivantara.com.

About Hitachi, Ltd.
Hitachi drives Social Innovation Business, creating a sustainable society through the use of data and technology. We solve customers' and society's challenges with Lumada solutions leveraging IT, OT (Operational Technology) and products. Hitachi operates under the 3 business sectors of "Digital Systems & Services" – supporting our customers' digital transformation; "Green Energy & Mobility" – contributing to a decarbonized society through energy and railway systems, and "Connective Industries" – connecting products through digital technology to provide solutions in various industries. Driven by Digital, Green, and Innovation, we aim for growth through co-creation with our customers. The company's revenues as 3 sectors for fiscal year 2023 (ended March 31, 2024) totaled 8,564.3 billion yen, with 573 consolidated subsidiaries and approximately 270,000 employees worldwide. For more information on Hitachi, please visit the company's website at https://www.hitachi.com.

HITACHI is a trademark or registered trademark of Hitachi, Ltd. All other trademarks, service marks, and company names are properties of their respective owners.

SOURCE Hitachi Vantara