Feeds

Hitachi and NEC look to network Japan

New venture begins Asian persuasion

  • alert
  • submit to reddit

Security for virtualized datacentres

Two of Japan's IT heavyweights - Hitachi and NEC - plan to give Cisco a run for its money in Asia, as the companies today announced a joint venture to sell networking gear.

The new company will not actually take shape until October at which time it will receive a name and start business with 350 employees and $51.3m in funding. Hitachi will own 60 per cent of the company with NEC taking the rest. The networking company will start out focusing entirely on the Japanese IT market where Hitachi and NEC hope it can place some pressure on the likes of Cisco and Juniper. Over time, the new venture will expand to China, South Korea and other parts of Asia as well.

The networking firm is expected to pull in $372m for its first fiscal year beginning in April 2005.

During a conference in Japan, Hitachi and NEC refused to reveal exactly what types of products will roll out first from the new company, according to various media reports. The two companies, however, said they hoped to have gear on the market by March and that they will cover the mid-range and high-end router and switch markets.

The venture will likely have a tough time convincing users to move away from Cisco and Juniper, given their incredibly strong market position. But Hitachi and NEC appear confident that they can role out quality gear and do so at a quicker clip than rivals. ®

Related stories

Nortel stock rallies on talk of Cisco bid
Lucent trade secret suspect goes on the run
US groups lobby over VoIP regulation

Remote control for virtualized desktops

More from The Register

next story
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
The DRUGSTORES DON'T WORK, CVS makes IT WORSE ... for Apple Pay
Goog Wallet apparently also spurned in NFC lockdown
IBM, backing away from hardware? NEVER!
Don't be so sure, so-surers
Hey - who wants 4.8 TERABYTES almost AS FAST AS MEMORY?
China's Memblaze says they've got it in PCIe. Yow
Microsoft brings the CLOUD that GOES ON FOREVER
Sky's the limit with unrestricted space in the cloud
This time it's SO REAL: Overcoming the open-source orgasm myth with TODO
If the web giants need it to work, hey, maybe it'll work
'ANYTHING BUT STABLE' Netflix suffers BIG Europe-wide outage
Friday night LIVE? Nope. The only thing streaming are tears down my face
Google roolz! Nest buys Revolv, KILLS new sales of home hub
Take my temperature, I'm feeling a little bit dizzy
Storage array giants can use Azure to evacuate their back ends
Site Recovery can help to move snapshots around
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
Protecting against web application threats using SSL
SSL encryption can protect server‐to‐server communications, client devices, cloud resources, and other endpoints in order to help prevent the risk of data loss and losing customer trust.