Corporate Press Releases - Hitachi Data Systems

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Hitachi Data Systems Changes the Storage Virtualization Playing Field according to Evaluator Group

New Evaluator Group Report States Hitachi's Controller-Based Virtualization Solutions are Resonating with Users in Mid-Market and Larger Enterprise Environments

SANTA CLARA, Calif., March 19, 2007 — Hitachi Data Systems Corporation, a wholly owned subsidiary of Hitachi, Ltd. (NYSE: HIT), today announced that the Evaluator Group Inc., a leading storage industry analyst firm, has issued a report stating that Hitachi Data Systems is outpacing the competition in its latest report on storage virtualization.

The report evaluates the different approaches to storage virtualization from three leading vendors in the storage industry: Hitachi Data Systems; IBM; and EMC. The report highlights Hitachi Data Systems' unique controller-based virtualization engine as gaining traction with users in mid-market and larger enterprise environments because of the company's simplified approach towards virtualization. Hitachi's flagship line-up of intelligent virtual storage controllers are comprised of the revolutionary Hitachi Universal Storage Platform and its rack-mounted variant, the Network Storage Controller. Hitachi has shipped more than 4,500 intelligent virtual storage controllers to date.

Tom Trainer, senior analyst at the Evaluator Group, notes that simplicity is key to winning over customers stating, "Businesses are looking for virtualization solutions that are simple to assimilate into the storage infrastructure, simple to deploy within the enterprise and easy to manage over time. The vendor that delivers simplicity will ultimately be the market share leader."

Unlike network-based virtualization solutions, the Evaluator Group states that controller-based virtualization does not need to crack (or open) fibre channel packets to map data. Network-based virtualization switches crack the data packets, read the data inside, seal them up again, and then ship the data packets back out on to the fibre channel. The Evaluator Group states there is a strong concern that opening up data packets is a security exposure for users. Additionally, the Evaluator Group states that networks and switches also introduce increased complexity between the application and the storage system.

"With its Intelligent Virtual Controllers, the USP and the NSC, Hitachi has separated the "brain" from the "body" of storage — the innovation from the commodity," added Trainer. "Hitachi has clearly changed the playing field with its breakthrough in simplicity via its controller-based virtualization technology while its competitors have continued to focus on monolithic disk arrays based on aging 20th century designs and increased network complexity."

For additional information about Hitachi Data Systems' storage virtualization solutions, visit www.hds.com.

About Evaluator Group, Inc.

As a leading independent analyst organization, Evaluator Group, Inc. focuses exclusively on the storage industry – both hardware and software. Pulling from an average of 30 years experience in the storage industry each, Evaluator's principles offer a depth and breath of knowledge and expertise by providing services ranging from detailed comparative product analyses to the latest on overall industry trends and directions. An international client base consists of vendors, integrators, other analyst firms, end-users and other information technology storage specialists.

Evaluator offerings include Advanced Education for Storage Professionals classes; a monthly newsletter addressing the very latest developments in the storage industry; customized consulting services; speaking engagements at prominent industry trade shows and events; and The Evaluator Series/On Line (ES/OL) Knowledgebase – the premiere tool for researching storage products and companies. For more information about Evaluator Group, please visit http://www.evaluatorgroup.com or call (303) 221-7867.

About Hitachi Data Systems

Hitachi Data Systems leverages global R&D resources to develop storage solutions built on industry-leading technology with the performance, availability and scalability to maximize customers' ROI and minimize their risk. By focusing on the customer's perspective as we apply the best hardware, software, and services from Hitachi and our partners, we uniquely satisfy our customers' business needs. With approximately 3,200 employees, Hitachi Data Systems conducts business through direct and indirect channels in the public, government and private sectors in over 170 countries and regions. Its customers include more than 50 percent of Fortune 100 companies. For more information, please visit our Web site at http://www.hds.com.

About Hitachi, Ltd.

Hitachi, Ltd., (NYSE: HIT / TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 356,000 employees worldwide. Fiscal 2005 (ended March 31, 2006) consolidated sales totaled 9,464 billion yen ($80.9 billion). The company offers a wide range of systems, products and services in market sectors including information systems, electronic devices, power and industrial systems, consumer products, materials and financial services. For more information on Hitachi, please visit the company's website at http://www.hitachi.com.

Press Contact:

Hitachi Data Systems
Mary Ann Gallo
(408) 970-4836
mary.ann@hds.com

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