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HD, Hitachi and IBM together towards the future

The joint venture, now active, between Hitachi and IBM in the field of HD, plans its future.

The managers of Hitachi Global Storage Technologies, this is the name of the new company, are in fact planning a new strategy that can soon lead to appreciable economic results in a very difficult sector such as storage.

According to what has been learned in recent days, the joint venture will internally separate its activities into four divisions, each of which responsible for its results: one will take care of the mobile field, one of the desktops and one of the servers. A fourth will focus its attention on emerging sectors, such as consumer electronics and the automotive sector.

Hitachi will face major challenges in the field of hard drives in the coming months. For example, some observers believe that it may be appropriate for the new company to abandon the field of desktops where profits are now reduced to a minimum by focusing its attention on high margin sectors.

Among these, for example, Hitachi would have identified that of Microdrive of which a 4 GB version should be available from next autumn.

Another sector of great importance is that of digital gadgets, such as digital cameras and PDAs.

The next Hitachi products, learned in recent days, will be two 1.8-inch disks of 20 and 40 GB and one 2.5-inch of 20 GB. A 15-inch 3.5-inch 15,000 RPM HD will also be made available.

Recall that the joint venture formed 70% by Hitachi and 30% by IBM and that Big Blue plans to completely exit the company within three years leaving 100% to Hitachi. Over the past 2 years IBM had lost $ 500 million in the field of hard drives, a highly competitive sector with very low margins.