Stoke Poges, U.K. 11th August, 2009: Hitachi Data Systems, a wholly-owned subsidiary of Hitachi, Ltd. (NYSE: HIT) and the only provider of Services Oriented Storage Solutions, today revealed its UK partners' predictions for the next 12 months. Partners were asked what they thought were the biggest business challenges facing their customers in the next year. Due to economic pressures 80% of partners believed that operational costs will be the biggest challenge and 78% saw capital costs creating obstacles for customers. A staggering majority (87%) of channel respondents said virtualisation is the technology solution that customers will be investing in, suggesting that customers see this technology as key to surviving in these tough economic times.

The survey found that partners view their customers' business challenges as being closely linked to IT challenges. For example, 83% predict that reducing operational cost within the IT infrastructure will be a key issue facing customers. An overwhelming majority (75%) also said businesses face the challenge of having to optimise their existing IT infrastructure as IT Managers are under increasing pressure to do more with less. Partners also saw budget constraints (73%), as an IT challenge that customers will be faced with. In an attempt to meet these challenges, according to 35% of partners, businesses will be looking to increase the utilisation of their storage infrastructures as they attempt to ensure optimum use of their IT infrastructure in tighter times. Only 16% thought that reducing the environmental footprint of an IT infrastructure was a key IT issue, suggesting that IT issues that do not directly impact business performance are no longer at the top of the IT Manager's agenda.

Harvey Smith, Regional Sales Director for UK & Ireland Channel at Hitachi Data Systems, commented: "There is no doubt that the next 12 months are going to be tough for businesses as, in many cases, they strive to do more with less. However, our survey results suggest that the discussion around virtualisation is no longer just ‘hype' as businesses realise it can help them reduce capital and operational costs."

Partners were also asked what effect their customers' IT and business priorities will have on their own business. Many of Hitachi Data Systems' UK partners (37%) stated that it will be challenging for customers to continue to invest in IT and over a quarter (27%) said that it will be more difficult to find new customers.

Given the popularity of virtualisation among customers, it is not surprising that 65% of Hitachi Data Systems' partners also reported virtualisation to be the technology solution that would be most profitable to their organisation in the next 12 months.

Smith concluded: "Our partners can help customers reach greater IT and business efficiencies while keeping operational and capital costs under control through our Storage Economics methodologies. Armed with these tools, our channel partners are addressing customers' challenges and achieving greater IT utilisation without having to spend money on more hardware. There are still commercial opportunities for partners, even in these tougher economic times."

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Survey Information
The Hitachi Data Systems' channel survey was carried out in July 2009 and surveyed 161 of Hitachi Data Systems' channel partners across the United Kingdom. Respondents completed an online survey that ran for four weeks.

About Hitachi Data Systems
Hitachi Data Systems Corporation provides Services Oriented Storage Solutions that enable heterogeneous storage to be dynamically provisioned according to business needs and centrally managed via industry-leading Hitachi storage virtualisation software. As an integral part of the Hitachi Storage Solutions Group, Hitachi Data Systems delivers storage infrastructure platforms, storage management software, and storage consulting services through direct and indirect channels in over 170 countries and regions. Its customers include nearly 60-percent of Fortune 100 companies. For more information, visit the company's Web site at http://www.hds.com/.

About Hitachi, Ltd.
Hitachi, Ltd., (NYSE: HIT / TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 390,000 employees worldwide. Fiscal 2007 (ended March 31, 2008) consolidated revenues totaled 11,226 billion yen ($112.2 billion). The company offers a wide range of systems, products and services in market sectors including information systems, electronic devices, power and industrial systems, consumer products, materials, logistics and financial services. For more information on Hitachi, please visit the company's website at http://www.hitachi.com/.

© 2009, Hitachi is a registered trademark of Hitachi, Ltd. and/or its affiliates in the United States and other countries. Hitachi Data Systems is a registered trademark and service mark of Hitachi, Ltd. in the United States and other countries. All other trademarks, services marks, company names are properties of their respective owners

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