The future of the Information

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The future of the Information
October, 2001
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HDS Company Data at a Glance

• Founded 1989
• Wholly-owned subsidiary
  of Hitachi,Ltd. (NYSEHIT)
• Total Employees - 2,900
• Operations in 48 countries
• Hitachi Freedom Storage?
  software, hardware, and services
• Hitachi, Ltd.s focal point for
  storage technology

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Hitachi, Ltd. (NYSEHIT)

• Founded 1910
• Worlds Fourth Largest Electronics Company
• - Manufacturer of over 22,000 products
• - 1,069 subsidiaries
• - Over 330,000 employees
• Total FY00 Sales of 67.9 Billion
• RD investment FY00 4.3B
• - More than 60 in IS and electronics
• - 17,000 researchers in 32 labs worldwide
• - More than 3,000 PhDs on staff
• - RD alliances with leading global companies
• No. 22 on the 2001 Fortune Global 500
• No.13 on the 2001 Software 500

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Hitachi, Ltd. Revenue by Industry Segment
FY2000 Revenues of 67.9B
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The World We Live in Today

• Increasingly dynamic
• Fierce global competition
• IT is the new production floor
• Re-invented workforce
• Information enables competitive edge

All with Zero Tolerance for Error
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Hitachi Global Storage Organization
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Accelerating Growth Fueled by Price- Performance
Storage and Technology Shift
EB
Pervasive
PB
Proliferation
TB
Expansive
GB
Opportunistic
MB
Mission Critical
KB
1960s
1970s
1980s
1990s
2000s
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Traditional Industries Responding to This Change

• Retail
• E-business, CRM, transaction growth
• Transportation
• Record air traffic/reservation levels, customer
  programs
• Government
• Scales to economic and population growth plus new
  programs
• All of the above
• Outsourcing, ASP, SSP initiatives consistently
  capture and retain more information than the
  legacy systems they replace

• Manufacturing
• Only 30 of manufacturers have begun to utilize
  B2B
• Finance
• Increasing client bases CRM requirements
• Telco
• Expansion beyond voice and data to services
• Healthcare
• Consumer demand for new services

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New Demand Drivers Are Increasingly Diverse

• New Businesses
• xSPs
• B2B Exchanges
• New Markets
• Personal
• Distance learning
• Web sites
• Web-based back up
• Extended Usage
• CRM/PRM
• Data mining
• B2C
• G2C

• New Applications
• Entertainment
• Rich media
• Video-on-demand
• Digital production
• BioTech
• Gene databases
• Protein mapping
• New Access Drivers
• Wireless (G3)
• Web/rich media content
• Voice recognition
• Voice over IP

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Expansion into New Markets
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Petabyte Growth Projections
84
16PB FY01 Target
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112
8.7
4.1
Note FY01 is a Hitachi, Ltd. projection
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Hitachi, Ltd. Global Focus on Storage

• Hitachi, Ltd. has identified data storage as one
  of its most strategic product areas and has
  extensive plans to capitalize on the global
  storage opportunity
• Hitachi, Ltd. plans to invest up to 2B by the
  end of FY2002 in RD, MA, and equipment to
  strengthen its position as a leader in the data
  storage field

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The UNIX NT Storage Opportunity
Source International Data Corp., 1/2001,
Sanford Bernstein, 7/2001
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Networked Storage is Rising
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Network Implications for Storage

• Traditional storage subsystems are not designed
  for networks
• Storage consolidation puts more demands on the
  subsystem
• Internal bandwidths must be increased
• Scalable capacity, performance, and connectivity
• Consolidation puts more users at risk
• Demands the highest availability subsystem
• Time to recover is critical
• Storage subsystems must support Internet
  Protocols (IP) for remote management
• Security must be provided to prevent servers from
  accessing other servers storage on the SAN

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Network Implications for Storage
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Stay Tuned - Next 6 Months

• Expand upon HDS Open, Collaborative,
  Channel-Intensive Approach to the Storage Market
• Pursue Investment and MA Opportunities
  
• New Joint Solutions with Brocade, Veritas,
  Microsoft, others
• Future Virtualization Platforms
• New Storage Software Hardware
• New Partnerships
• Increase Market Share

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Thank You