Hitachi Vantara Saw 27% Increase of Product Revenue Growth from 1FQ23 to 1FQ24

Hitachi Vantara, subsidiary of Hitachi, Ltd., announced growth in its storage business in 1FQ24 ended June 30).

In particular, it saw a 27% increase of Q/Q product revenue growth compared to 1FQ23, exceeding the market CAGR of 11.31%. The growth was even more pronounced in USA, which saw an increase of 54% Q/Q compared to the previous year.

The continued success builds on company’s broader growth in the overall storage market. According to IDC’s Worldwide External Enterprise Storage Systems Market Shares, 2023 (published May 2024), the firm achieved a 9.2% growth in revenue in the external enterprise storage system market in calendar year 2023 compared to 2022, which was the 2nd highest among the top 8 companies evaluated in the report.

These results are especially notable given the business challenges of managing complex data environments are growing rapidly due to the acceleration of AI and its impact on data infrastructure. One recent survey found that businesses expect the amount of data they use to double between 2023 and 2025. The report also found that 6 in 10 business leaders are already overwhelmed by the amount of data they store, and 75% are concerned that their current infrastructure will be unable to scale for the future.

“Businesses have long recognized the importance of future-proofing their infrastructure, but the rapid rise of GenAI has escalated this into an urgent priority,” said Neil McGowan, CRO. “As customer demands evolve and IT departments struggle to keep pace, Hitachi Vantara is empowering businesses to seize this pivotal moment. Our infrastructure portfolio, built for unmatched scalability, reliability, and performance, empowers customers to swiftly transform data into tangible financial gains, leverage automation to optimize processes, and flexibly scale their infrastructure, ensuring significant cost savings and an enhanced overall experience.”

Launch of a New, Sustainable Hybrid Cloud Data Platform
Much of this success has been driven by the recent availability of vendor’s new unified, hybrid cloud data platform, Hitachi Virtual Storage Platform One. Despite only having launched in April, Virtual Storage Platform One already boasts more than 65 unique customer deals to date.

It simplifies infrastructure for mission critical applications, with a focus on data availability and strong data resiliency and reliability measures including mitigation of risks such as downtime, productivity losses, and security threats and is available for block, SDS cloud, and file storage.

Notably, Virtual Storage Platform One Block also features Dynamic Carbon Reduction technology, reducing energy consumption by switching CPUs into eco-mode during periods of low activity.

“Always on compression” allows the system to switch from inline data reduction to post processing which further reduces energy consumption and contributes to a lower CO2 footprint by as much as 30-40%.

The company ‘recently announced that Energy Star rated Hitachi Vantara’s storage solutions with all 3 of the top spots in its rankings for performance and energy efficiency in the Energy Star Online 4 category, and the company was recognized with a Gold Medal rating for sustainability from EcoVadis, in assessing corporate social responsibility and sustainability practices.

“Hitachi Vantara’s ability to develop a data infrastructure environment that is extremely reliable was a crucial factor in the selection process of our infrastructure modernization partners,” said Alexandre Simcsik, datacenter operations director, Cirion Technologies. “With Virtual Storage Platform One, we can easily scale as our customer demand grows without disruption or downtime so that we can continue to deliver on the business outcomes that our customers demand.”

Sharing Success with Partners
Firm’s partner network also saw substantial growth with Virtual Storage Platform One in 1FQ24, reporting 106% growth in annual operating profit and 38% Y/Y revenue growth. The mid-sized market segment, in particular, leaned on Virtual Storage Platform One’s enhanced features to transform the storage experience.

“Partner success is integral to our growth, and the remarkable results from Virtual Storage Platform One underscore this perfectly,” said Kimberly King, SVP of strategic partners and alliances at Hitachi Vantara. “Virtual Storage Platform One not only advances our partner program attributes of trust, profit, and sustainability, but it also empowers our partners to enhance their value propositions and achieve substantial growth. By leveraging our advanced, reliable, and scalable storage solutions, we are committed to supporting their success and helping them exceed their customers’ expectations.”

The announcement comes after Hitachi Vantara previously announced the completion of a strategic realignment designed to accelerate the company’s growth plan with a focus on hybrid cloud and generative AI. The firm commands extensive infrastructure and storage experience across hybrid cloud environments, as well as a shared focus on collaboration to drive meaningful business outcomes for the company’s customers.

More on Hitachi Vantara’s data storage, infrastructure, and hybrid cloud offerings