Hitachi Ltd. and Hitachi Vantara jointly announced Hitachi’s first commercial Lumada internet of things (IoT) platform offering this month. In an email interaction with Karma Negi of The Red Mark, Sanjay Agrawal, Director of Platforms and Solutions Group, Hitachi Vantara, talks about Hitachi Vantara, and the opportunities in the IoT market.
With the launch of Hitachi Vantara, what major transformations will we witness in the coming months?
With the recent launch of our new business entity, Hitachi Vantara, we aim to leverage the broad portfolio of innovation, development and experience across Hitachi Group companies to deliver data-driven solutions for commercial and industrial enterprises for their Digital Transformations. This new company will unify the operations of Hitachi Data Systems, Hitachi Insight Group, and Pentaho into a single integrated business as Hitachi Vantara to capitalize on Hitachi’s social innovation capability in both operational technologies (OT) and information technologies (IT).
In the coming months, Hitachi Vantara will continue to provide superior infrastructure and analytics technologies that enterprises rely on for their mission-critical data in their data centers, cloud and at the edge of new innovations. With no clear winner in the emerging IoT market, we aim to fill this market gap and create an opportunity that will harness businesses and machine data across OT and IT environments to build comprehensive, data-driven solutions. In addition, we will also be driving the development of strategic software and services solutions, including Hitachi Smart Data Center software and services, Lumada and Hitachi co-creation services.
With the aggressive shift towards IoT, cloud and services, how are you seizing the opportunities offered by mobile cloud and digital workspace technologies?
IoT is no longer just about ‘big’ data – it is also about small data that drives big outcomes. According to Gartner., more than $440 billion will be spent on IoT in 2020, and the firm estimates that by 2020, there will be more than 21 billion connected sensors and endpoints, and digital twins will exist for potentially billions of things. Hitachi Ltd. and Hitachi Vantara jointly announced Hitachi’s first commercial Lumada internet of things (IoT) platform offering this month. Since introducing Lumada to the market as a co-creation platform in May 2016, Hitachi has hardened and optimized its Lumada IoT platform.
With its v2.0 release, the Lumada IoT platform has been fully updated with an elegant, portable architecture that enables it to run both on-premises or in the cloud and to support industrial IoT deployments both at the edge and in the core.
For enterprises looking to implement IoT initiatives as part of their digital business strategies, a secure IoT solution is necessary to connect physical assets and blend data from disparate sources to extract value. Our recently launched appliance for internet of things (IoT) deployments: Hitachi IoT Appliance, powered by Lumada combines Hitachi’s best-in-class storage and compute with industry-leading networking technologies and is fully integrated with Hitachi’s latest Lumada software.
How much of investment are you making in IoT? What kind of market-share are your looking at?
IoT involves the integration of IT and OT. Hitachi Vantara combines its years of OT and IT experience to deliver on the promise of IoT for exceptional outcomes to its customers.
If you look at our financial reports, our Lumada business which is essentially the IoT business was about 900 billion Yen which translates to about 8.3 billion US dollars. That is a fairly big market and is redefining a lot of things we have been doing in IoT but has been scattered around.
We are now consolidating that under one P&L. 1.1 billion is around the core products and 7.2 billion is around the services. So, this is where our services are going and we are moving towards co-creating these products.
Other firms who have approached IoT are mostly building products that are going to address the consumer side. What we want to do is work with key customers to co-create these products and then be able to then take it to the general market.
Can we know more about your plans for the coming quarters?
The company will focus on serving global Fortune 1000 companies with best-in-class data management, infrastructure, content and analytics products and industrial IoT solutions for a number of industries including financial services and insurance, government, industrials/manufacturing, telecom, and transportation.
Our mission is to help organizations across industries harness the value from all their data, including big data and Internet of Things (IoT), enabling them to find new revenue streams, operate more efficiently, deliver outstanding service and minimize risk. At the same time, Hitachi Vantara will continue to provide infrastructure and analytics technologies to enterprises for mission-critical data in data centers, in the cloud and at the edge.