As part of efforts at Hitachi Systems (“HISYS”) Group to further grow its global business, we decide to strengthen the management structure of Hitachi Systems Trusted Cyber Management, Inc. (“HSTCM”) and Hitachi Systems Security Inc. (“HISYS-SEC”) effective of January 1st, 2024, with aim to expand our Managed Security Services (“MSS”) business.
Along with this, we would like to inform you all about the background and purpose.
Recently, Telework, DX and use of Cloud services are progressing at a rapid pace to prevent spread of COVID-19 infection. At same time, security threat, for example, confidential information theft by ransomware attack and APT (Advanced Persistent Threat), and attacks on new normal work style, are becoming more serious over the world. As countermeasure, a new tide of regulatory compliance is broadly accelerated, because those security threats may cause, not only, direct damage like system downtime in critical infrastructure of electric plants, railways, banks, and hospitals, but also, deterioration of companies’ reputation that disables to continue the business through, not limited to but, large leakage of personal information. We should highlight, from viewpoint of DSS sector, it is our mission to go forward to solve such social challenges, in other words, business opportunities.
HISYS group will respond to these social challenges and create a new business pillar of the MSS business by combining our experience and expertise for security business we have cultivated mainly in Japanese mass market of small and medium-sized companies with our global footprint.
In October 2022, as part of our investment for growth, we reorganized Cumulus Systems Inc. and HISYS-SEC both in North America and established HSTCM. They have just celebrated the 1st anniversary. I would like to appreciate once again all of HSTCM employees and related HISYS members for their hard work.
Then, considering social challenges deepened and our current situation, we decide to strengthen the management structure of HSTCM and HISYS-SEC.
Specifically, Mr. Gajen Kandiah, President of Hitachi Digital LLC and Executive Chairman of Hitachi Digital Services LLC, will be appointed as the new Chairman of the Board of HSTCM. Under the leadership of current HSTCM CEO, Mr. Scott Wiebe, we will create further synergies with GlobalLogic and Hitachi Digital Services, and then accelerate inorganic growth primarily in North America.
In addition, Mr. Kosuke Imai, who was appointed as Deputy CEO of HSTCM this October, will concurrently serve as CEO of HISYS-SEC and be given an opportunity to play an active role for contributing to our priority measures of global business regrowth.
Mr. Shin Kuno (current HSTCM Chairman) and Mr. Anthony C. Subero (current HSTCM COO and HISYS-SEC CEO), who will resign from their current roles, have led the reorganization, and worked hard up to now, to build a management foundation for the future. I would like to bring my sincere gratitude to both of them.
I personally see exciting potential in the MSS business and will continue to actively invest in its growth. This is because we believe it has the potential to become DSS's core business in the future.
In 2020, we confronted the illegal access problem in our "IT Management Services" to provide IT system operation monitoring services, which caused inconvenience to many customers and related parties who use the service. However, by addressing and improving the crisis with diligent efforts, we acquired the track record and irreplaceable knowledge.
Furthermore, if we look at the Hitachi Group as a whole, the MSS business for the segment where IT and OT intersect, is a point of differentiation from other companies and can be a strength for Hitachi Group. We hope to ensure achievement of the 2024 Medium-term Management Plan with HSTCM new management structure, and further to be able to join the ranks of global players as a consolidated business of HISYS Group during the period of the 2027 Medium-term Management Plan.
December 14, 2023
Setsuo Shibahara
President and CEO
Hitachi Systems, Ltd.
* This is a translation of a message to employees of Hitachi Systems, Ltd.
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