Hitachi Vantara And Consulting Merger Creates IT ‘Powerhouse’

Japanese conglomerate Hitachi has completed its merger between Hitachi Vantara and Hitachi Consulting in a move channel partners say will accelerate the adoption of the company’s IoT and data-driven solutions in the channel.

Hitachi’s goal in merging the two companies is to create a new IT “powerhouse” that combines Hitachi’s consulting-led digital solutions and vertical expertise organization with Hitachi Vantara’s domain expertise with a heavy focus on the data center, data operations and digital transformation, according to the Santa Clara, Calif.-based company. The combined company will continue to be called Hitachi Vantara.

“A barrage of data and technology is disrupting enterprises and industries the world over,” said Toshiaki Tokunaga, chairman and CEO of the new Hitachi Vantara, in a statement. “Through the integration of Hitachi Consulting, the new Hitachi Vantara will be uniquely equipped with the capabilities our customers need to guide them on their digital journeys. We’re going to be the company that helps customers navigate from what’s now to what’s next.”

[Related: Hitachi Vantara Snags Cohesity Channel Exec To Run Partnerships, Alliances]

When Hitachi first announced the planned merger between Hitachi Vantara and Hitachi Consulting in September, partners told CRN that the move will elevate Hitachi Vantara’s IoT and data-centric business by leveraging the strong services consulting arm of Hitachi Consulting. “It takes several different types of skilled technical resources to understand the data that’s available to you to derive the value from that data," said John Woodall, vice president of engineering for Palo Alto, Calif.-based Integrated Archive Systems. “This formalizes and streamlines the ability for that single organization to go to market around their technology [and] wrap in the required services as part of a go-to-market strategy.”

The new company’s manufacturing practice will integrate consulting methodologies for addressing quality, customization, sustainability and new business models with data-driven offerings such as its Lumada Manufacturing Insights. A large goal of the merger is to help expand Hitachi Vantara’s Lumada IoT and industrial solutions business.

The new Hitachi Vantara is also expected to advance Hitachi’s 2021 Midterm Management Plan, which aims to make the company a global leader through social innovation. The plan centers around combining Hitachi’s industrial and IT expertise and products to create new value and help resolve social issues.

Hitachi Vantara was created in September 2017 by combining Hitachi’s Data Systems storage and data center infrastructure business, its Hitachi Insight Group IoT business and its Pentaho big data business.

Thirty-year Hitachi veteran Tokunaga will serve in a dual role of chairman of the board and CEO. Former Hitachi Vantara CEOs Brian Householder and Hicham Abdessamad will remain on the executive leadership team of the new combined company. Householder is now president of the company’s Digital Infrastructure business unit. However, Hitachi did not release information on what Abdessamad’s new role will be. Brad Surak will lead the company’s Digital Solutions business unit as president.