Gung ho on Government



l The
18 months that have elapsed since 9.11 have seen increased awareness about
business continuity and disaster management. How has this affected your storage
business?

9.11 only reinforced the need for robust storage architecture. IT departments
had been aware of these issues, but suddenly, the importance of storage hit CEOs
and heads of organizations in India. In the grip of the slowdown, the US economy
went into a further budget squeeze after 9.11 and business slowed. But in India,
the number of SAN installations doubled in the last 12 months. But this would
have happened even without 9.11. The incident only made Indian CEOs wary of
eventualities. Not surprisingly, India is among the top three companies Hitachi
is focussing on–the other two being China and Brazil.

Subbu
Subramanian
country
manager, Hitachi Data Systems India

l Which
are the key verticals you are targeting in India?

Telecom, banking and financial services, software development houses, and the
government are the key verticals that we focus on. These sectors have immense
storage needs and need specialized services. In fact, we expect the government
sector to contribute 20-25% of overall revenues from India in the next fiscal.
The first 18 months of our India operations drew revenues worth $10 million. We
are targeting another $10 million in the second half of the current fiscal.

l What
are the key requirements for a strong and efficient storage system?

Scalability, interoperability, performance, manageability, and reliability are
the essential features of a storage system. As the data in the organization
grows, the system should be able to scale from a single terabyte to hundreds of
terabytes, the speed of accessing the data should not deteriorate and it should
be able to operate with diverse devices, operating systems, servers and
applications.

l What
is the market size for storage systems in India?

India has the potential to generate annual business worth nearly $ 100 million.
We are still tapping the top of the pyramid targeting the top 500 organizations.
We need to be prepared to move lower down the chain. That’s when the channel
business will bloom.

l What
has been your investment in the Indian market?

HDS is a wholly owned subsidiary of Hitachi Ltd. All investment decisions are
taken by the parent company. HDS is a $ 2 billion company in the $80-billion
group. Hitachi plans to capture 20% of the SME and 50% of the high-end market in
the next 12 months. We have invested about $1 million in India till now.

l Who
are your partners in the Indian market?

We have a global relationship with Sun, and that works very well in India too.
Apara and Lanbit are the only two local partners we have. We also do some
business with Tata Infotech.

Manjiri Kalghatgi

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