Tuesday, May 23, 2017

IBM and Hitachi collaborate to make a historic deal!

IBM and Hitachi have announced today that IBM will supply customized IBM z system mainframe technology running the Hitachi VOS3 operating system. Hitachi will supply the system to customers in Japan. Existing IBM services such as IBM Cloud Blockchain (available on Bluemix) will be available. Clearly, it is no exaggeration to call this a “historic agreement”. Here’s why.

This agreement benefits both companies as it marks a historic first for IBM in sharing its mainframe technology. For Hitachi, the agreement means that the company will be able to offer the latest in large system technology with additional features and specifications specifically targeted to its customers. In turn, IBM acquires a strong technology partner to collaborate with for future mainframe development.

Hitachi customers benefit because they have assured access to world-class technology without having undertaken any conversions. Continuing use of the Hitachi operating system preserves existing investments (typically quite significant for large system customers) in applications software, staff training, and experience with Hitachi’s operating system.

The economics for both companies are quite compelling. Hitachi is spared making the massive investments needed go-it-alone in the large systems market.  IBM strengthens and broadens its commitment to Open innovation on the mainframe by extending their existing open source software and cloud standard support. It also broadens the market for z Systems technology already in-place and supporting the world’s top 10 insurance firms, 44 of the top 50 global banks, 18 of the top 25 retailers and 90 per cent of the largest airlines.  This promises to be a win-win for all involved parties. 

Kudos to Hitachi and IBM for this well thought out collaboration.