Hitachi Data Systems Forms Subsidiary to Help US Federal Government Innovate With Information

Hitachi Data Systems Federal Corporation Improves IT Efficiency for US Government Agencies with Industry-Leading Virtualization and Cloud Solutions

SANTA CLARA, Calif.— April 15, 2013 — Hitachi Data Systems Corporation (HDS), a wholly owned subsidiary of Hitachi, Ltd. (TSE: 6501), today announced that it has established a new wholly owned subsidiary focused on serving the IT needs of the U.S. federal government. Hitachi Data Systems Federal Corporation is committed to reducing the complexity and increasing the efficiency of U.S. government data center initiatives including the Federal Data Center Consolidation Initiative (FDCCI), cloud services, big data analytics, and others. HDS Federal Corporation will leverage the industry-leading virtualization and cloud solutions of its parent company to help U.S. government agencies meet the requirements of the initiatives more quickly and with greater use of their existing IT infrastructure. In doing so, these agencies will be able to gain better insight from their data, leading to continued innovation and business advantages.

Leading the new subsidiary company is Michael Tanner, a former vice president at Hitachi Data Systems, who will now be president and CEO of Hitachi Data Systems Federal Corporation. According to Tanner, “The U.S. federal government continues to be one of the largest purchasers of IT hardware, solutions and services. This is a market that HDS has been investing in for more than 5 years, and now with the launch of Hitachi Data Systems Federal Corporation we are even more committed and better equipped to bring the IT industry’s most reliable, trusted and advanced virtualization solutions to U.S. government agencies. We recognize the challenges these agencies face as they look for ways to continue reducing their overall IT spending amid an ever growing mountain of data. Our storage economics model combined with our flexible, secure and scalable cloud platforms are proven to reduce capex and opex, while driving increased efficiencies throughout the data center.”

Established in 2011, the FDCCI is a U.S. federal government mandate to increase consolidation of U.S. government data centers. It lists specific goals and timelines centered on several key strategic initiatives, including:

• Reduce overall spending on data center hardware, software and operations.
• Reduce overall IT operations spending for the government through greater leverage of shared services.
• Increase the overall IT security posture of the agency.
• Shift IT investments to more efficient computing platforms and technologies, including cloud‐based solutions as well as insourcing in some cases.
• Promote the use of green IT by reducing the overall energy and real estate footprint of government data centers.

Among the key solutions for increasing IT efficiency that HDS Federal Corporation will bring to U.S. government agencies is Hitachi Virtual Storage Platform (VSP), the dominant enterprise platform for virtualized environments. The platform’s industry-leading storage virtualization capabilities help customers reclaim storage capacity and better utilize their existing assets to meet their current and future data requirements. The ability of Hitachi VSP to virtualize heterogeneous storage systems enables customers to increase utilization rates without having to buy a lot of new capacity or rip and replace their legacy storage. Further data center efficiency and performance gains are achieved with Hitachi Dynamic Tiering (HDT) and Hitachi Dynamic Provisioning (HDP), coupled with the expertise of HDS Federal Corporation in storage economics.

HDS Federal Corporation will also help U.S. government agencies be able to adopt cloud-based IT delivery models in a secure, scalable and flexible manner. Since Hitachi Data Systems announced its entrance into the cloud market in October 2009, customers have used HDS cloud-enabling technologies and features such as multi-tenancy for secure partitioning of data, virtualization and data mobility to optimize efficiency and operations. Customers have also benefited from a modular architecture with potential for massive scaling. Whether it’s private or hybrid cloud environments, HDS Federal Corporation can help U.S. government agencies reap the benefits of cloud without sacrificing any of the control, protection or security they require.

Hitachi Data Systems Federal Corporation is headquartered in Reston, Virginia. For more information on the company, please visit: www.hdsfed.com.

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About Hitachi Data Systems

Hitachi Data Systems provides information technologies, services and solutions that help companies improve IT costs and agility, and innovate with information to make a difference in the world. Our customers gain compelling return on investment (ROI), unmatched return on assets (ROA), and demonstrable business impact. With approximately 5,900 employees worldwide, Hitachi Data Systems does business in more than 100 countries and regions. Our products, services and solutions are trusted by the world's leading enterprises, including more than 70% of the Fortune 100 and more than 80% of the Fortune Global 100. Visit us at www.HDS.com.

About Hitachi, Ltd.

Hitachi, Ltd. (TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 320,000 employees worldwide. Fiscal 2011 (ended March 31, 2012) consolidated revenues totaled 9,665 billion yen ($117.8 billion). Hitachi is focusing more than ever on the Social Innovation Business, which includes information and telecommunication systems, power systems, industrial, transportation and urban development systems, as well as the sophisticated materials and key devices that support them. For more information on Hitachi, please visit the company's website at http://www.hitachi.com.

© Hitachi Data Systems Corporation 2013. All rights reserved. HITACHI is a trademark or registered trademark of Hitachi, Ltd. Innovate With Information is a trademark or registered trademark of Hitachi Data Systems Corporation. All other trademarks, service marks, and company names are properties of their respective owners.

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