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HDS Australia will avoid most of the carnage

HDS Australia will avoid most of the carnage

Employees at Hitachi Data Systems' local office have so far missed the sword that fell on around 600 staff in the US and Europe last week.

However, HDS marketing director Garry Scarborough has refused to rule out the possibility some local staff will go, explaining the decision has not yet been made.

The message from HDS corporate, Scarborough said, was that 480 jobs will go in the US, 90 from Europe and 50 from the "rest of the world".

"There will be some (redundancies here), but how many will be reviewed in the next month," he said.

The Australia operation will largely avoid the redundancies because it has already made the transition to services-based revenues instead of its traditional hardware business.

In contrast, he said HDS's US headquarters had the luxury of continuing to rely on its "big iron" sales until now.

Scarborough denied suggestions the move was late in a market already focused on services-based sales, particularly in the channel. "You could always say you should have done it earlier, but I don't think so," he said.

HDS announced last week the company will be divided into two independent companies: a platform-specific company called HDS, and an independent systems integration company called Hitachi Data Systems Solutions (HDSS).

Each company will have its own profit-and-loss responsibility and will report to Hitachi Data Systems Holding Company, which is incorporated in Delaware.

Meanwhile, HDS yesterday announced the appointment of niche distributor Simms International with the intention of extending its reach into the reseller and VAR community.

Simms International now distributes HDS's entire range of enterprise storage solutions. HDS is seeking to boost its market share in the ecommerce, banking, telco and ISP markets, the company reports.


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