Despite the argument about the slow market for storage networks in Japan, Hitachi sold 80 percent of its SAN/NAS solutions outside that country last quarter. Of that 80 percent, about 50 percent of revenues came from the U.S., 40 percent from Europe, and 10 percent from other parts of the Asia/Pacific region.
Certainly, Hitachi's facing more competition than ever worldwide, and archrival EMC Corp. (NYSE: EMC) is being more geographically aggressive than ever.
Hitachi remains bullish on its ability to sell packaged storage networking, however. Indeed, the company projects a 14 percent increase in sales from fiscal 2004 through 2005, with corresponding increases in profit margins.
Hitachi will use software to increase its sales advantage, Takahashi says. In fiscal 2003, SAN/NAS solutions from Hitachi were typically comprised of 76 percent hardware, 10 percent software, and 14 percent services. By 2005, the company hopes to change that mix to 60 percent hardware, 20 percent software, and 20 percent services.