Under a new entity called Hitachi Vantara, the company is adopting an “as-a-service” subscription model. In this way, they are aiming to become a large part of the data analytics, AI, and IoT space.
Even though the company only generates 20% of its revenue through subscription-based services as of right now, Bobby Soni, chief solutions and services officer, is convinced that this will change in the upcoming three years. According to him, businesses would rather pay on a consumption basis, as indicated by the trucking industry, for example. That way, they can maximise the time spent on the road.
Brian Householder, CEO of Hitachi Vantara, attributes the scope broadening of the company to the growth of cloud computing. Revealing their vision for the future, he stated that he wants customers to control their data rather than the company. As an example, he made a reference to a typical cloud provider that makes it very challenging to get data out, even though they may claim you own the data.
Currently, Hitachi Vantara is valued at $48.2 billion plus. Apart from the afore mentioned, the company is also known for manufacturing electronic equipment, consumer electronics, and industrial manufacturing goods. Householder believes that entering the data analytics industry is a huge growth opportunity for the company, claiming that most businesses tend to analyse less than 5 per cent of their data.
Briefly touching upon their revenue structure, Householder revealed that software and services make up 60 per cent of their revenue, which is a significant increase from 15 years ago, when that number was 20 per cent.