Hitachi Data Systems Denies Nikkei Report That It's Freezing High-End Storage Development

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Hitachi Data Systems is up in arms over a report on a Japanese business site that said the vendor is exiting the high-end storage business.

Hitachi Data Systems, the U.S.-based subsidiary of Japan-based Hitachi responsible for storage sales worldwide outside of Japan, is denying the report and working with its parent company to understand how the story was published, company officials told CRN.

The interest in the story started last week, when ITpro, an online publication of Japan-based Nikkei Business Publications, published a story dated June 1. A poorly edited English translation with the same date, possibly the result of the Google translation site, was also published.

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The English-language version of the story carried the headline "Hitachi business strategy briefing, new investments in high-end storage to freeze."

After internal business strategy meetings, according to the article, Hitachi included as part of its strategy "freezing the investment in the high-end model of the storage business."

At least one competitor, IBM, used the headline for competitive purposes, by tweeting it to followers.

An HDS spokesperson told CRN the company is by no means end-of-lifing its high-end storage business.

However, the spokesperson did say that HDS is shifting some of its R&D efforts to different parts of its business, just like other vendors in the storage business.

"It would be silly for us to exit a market where we have dominated for years," the spokesperson said. "We're still adding innovations in our hardware and software, including flash storage, analytics, and converged infrastructure."

The spokesperson said that HDS' strategy for years was to invest in high-end storage, especially in the hardware.

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