Hitachi Data Systems is axing 400 jobs worldwide as it switches its emphasis towards the storage market and away from its faltering server business.
HDS staff in Europe will have to wait until later on this month before they find out how they will be affected by the reshuffle, although the bulk of the job losses are expected to be in the US. HDS Europe employs 630 people, with HDS having 2,400 employees worldwide.
In recent months, HDS has been overshadowed in the S/390 market by the launch of IBM?s G5 mainframe range. While the Hitachi Skyline server was previously the most powerful of the big iron boxes at 975Mips, the G5 delivers over 1,000Mips in total performance. The G5 is also based on Cmos technology, instead of the Skyline?s combination of bipolar and Cmos, and has considerably lower environmental costs and a smaller footprint.
Last month, IBM announced it had shipped its one thousandth G5 system, making it its fastest selling and most successful shipment of any S/390 server.
John Taffinder, general manager for HDS Europe, said the company sees huge potential in the storage marketplace. ?We?ve seen EMC have big success in this area,? he said.
He denied that HDS was losing out in the mainframe server market however: ?We?ve shipped more Mips this year than we?ve ever done before but the S/390 market is growing quite strongly in terms of Mips but not in terms of revenue.?
Phil Payne, director of Isham Research, said it makes sense for HDS to switch its focus towards the storage market. ?HDS has a very good storage story at the moment with its 7700 system, which is ahead of IBM and EMC on the technology side.?
The 7700E is a multiplatform storage subsystem, designed to connect to S/390, Unix and NT environments.
HDS also announced this week the Freedom Storage 5800 subsystem, designed to connect to clustered Windows NT or Unix servers (see separate story). Next year, HDS will ship its Skyline 2 mainframe system in the third quarter, which is expected to have a total performance of up to 2,000Mips.
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