With Over $5B in Combined Global Revenue, 33 IoT Solutions In-Market, Global Operations and Collaborations with AT&T, Eurotech, Intel, Microsoft, PTC and SAP, Hitachi Sets Its Sights on Leadership in the Industrial and Enterprise IoT Markets
Following its corporate statement of direction on April 14th, Hitachi has announced the formation of Hitachi Insight Group. Headquartered in Santa Clara, CA, the new group will drive Hitachi’s unified Internet of Things (IoT) business and go-to-market (GTM) strategy worldwide. With USD$5.4 billion in IoT solutions and services revenue generated in 2015 and33 solutions in-market today, Hitachi offers one of the broadest IoT solutions portfolios in the industry. By uniting its digital and IoT solutions and services businesses, Hitachi is positioning itself to lead in this fast-growing market. The newly formed Hitachi Insight Group will be the ‘tip of the spear’ in Hitachi’s quest to capture market share in what IDC projects to be a $1.46 trillion market opportunity by 2020.1
IoT is propelling a rapid convergence of our physical and digital worlds, creating unprecedented opportunities and challenges for businesses, cities, governments and industries. Hitachi is a pioneer in the creation and application of sensors to provide connected intelligence and support early IoT use cases in industrial markets, such as predictive maintenance and optimized factory. The company’s rich 106-year industrial heritage and extensive proficiencies in operational technology (OT), combined with its more than 50 years experience in developing advanced information technologies (IT), make it uniquely capable of helping customers to extract actionable insights from IoT and fully capitalize on the benefits of digitalization. Few companies possess Hitachi’s breadth of expertise or deep understanding of the IoT value chain, which are essential to build and deploy digital solutions at scale.
“The greatest opportunity for IoT lies in the enterprise, industrial and public sector markets, which stand to benefit significantly from digital transformation. Although the market is still nascent, digitalization is already disrupting traditional product-based business models, driving demand for solutions and an everything-as-a-service approach,” said Vernon Turner, senior vice president, enterprise systems and IoT research fellow at IDC. “Few companies possess the expertise and breadth of resources required to deliver IoT solutions and services, and drive real business value at scale. With today’s announcements, Hitachi is making good progress toward positioning itself to be one of the few likely IoT powerhouses as the market shakes out.”
Hitachi’s IoT portfolio includes solutions and services for public safety and smart cities, renewable and sustainable energy, intelligent transportation, precision agriculture and manufacturing, water treatment and urban development, construction, mining and more. These digital solutions deliver connected intelligence and drive actionable insights to support better business decision-making and tangible real world outcomes, like increased productivity and safety, streamlined business processes, lower cost of operations, reduced carbon footprint, and improved quality of life.
To enhance its existing portfolio and support the development of new solutions and services, the company has created Lumada, Hitachi’s IoT core platform. Lumada’s open, adaptable software architecture is designed to accelerate the development of IoT solutions, while providing flexible support for customization and co-creation with Hitachi’s customers and partners. The platform was announced in a separate statement issued today.
The formation of Hitachi Insight Group is part of Hitachi’s corporate strategy and initiative to move its business toward a market-in approach. Led by Keiji Kojima, Ph.D., who also holds concurrent positions as senior vice president and executive officer at Hitachi Ltd, the group will drive research and development and GTM strategies for Hitachi’s IoT-optimized solutions and services, in four key market segments: Smart City, Smart Energy, Smart Healthcare and Smart Industry. Hitachi’s global IoT-focused team of more than 16,000 employees from Hitachi Insight Group and various divisions across Hitachi Ltd. and its Group companies, including Hitachi Data Systems and Hitachi Consulting among others, will collaborate to accelerate delivery of solutions.