Hitachi, BlueArc Ink OEM Deal

By Chris Preimesberger  |  Posted 2006-12-18 Print this article Print

Under the agreement, which includes a minority stake investment in BlueArc by HDS, both companies will resell the other's products

Storage area network provider Hitachi Data Systems couldnt acquire competitor BlueArc, so instead the two companies are entering into a five-year OEM partnership that already has resulted in a new product.

The two companies have been working for months on the new Hitachi High-Performance NAS Platform and the corporate relationship, which gives HDS, of Santa Clara, Calif., a new high-end enterprise product line to sell and BlueArc the worldwide marketing and sales arm it needs to continue growing.

Under the agreement, which was announced Dec. 11 and includes a minority stake investment in BlueArc by HDS, both companies will resell the others products.

HDS, a wholly owned subsidiary of Hitachi of Japan, sells products in 170 countries and has more than 1,000 resellers worldwide. BlueArc makes the Titan NAS (network-attached storage) system and is the worlds second-largest high-end enterprise NAS maker behind EMC.

In October, HDS began laying off sales engineers and managers to reorganize around solution and vertical specialization areas such as entertainment, health care and content management. The company declined to say how many salespeople were laid off.

"This is another step in what I refer to as the new Hitachi Data Systems," said Tony Asaro, an analyst with Enterprise Strategy Group. "Less than two years ago, I used to say they were a great SAN [storage area network] storage company. But now it is clear that they are focused on being a great storage networking company with a more comprehensive portfolio of products."

The Hitachi High-Performance NAS Platform features BlueArcs highly advanced file-based virtualization framework.

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Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz

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