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Written by Hitachi Systems Security on 1 September 2022

News Release - Reorganization of North American Group Companies for Expanding Global Managed Services

TOKYO, Japan --- September 1, 2022 --- Hitachi Systems, Ltd. ("Hitachi Systems"), a wholly owned subsidiary of Hitachi, Ltd. (TSE: 6501), today announced that Cumulus Systems Inc. ("Cumulus Systems") and Hitachi Systems Security Inc. ("Hitachi Systems Security"), its group companies in North America, will be reorganized in order to strengthen managed services (superior security services, advanced performance analytics services, etc.) for global markets, with the objective of further expanding global businesses.

  • Reorganization of North American Group Companies

Effective October 1, Cumulus Systems will change its corporate name to Hitachi Systems Trusted Cyber Management Inc. ("Hitachi Systems TCM") and will take Hitachi Systems Security as its subsidiary. Furthermore, Hitachi Systems TCM will acquire Hitachi Systems Security USA, Inc. through an absorption-type merger.

As a result, Hitachi Systems TCM will take Hitachi Systems Security, a security service company in Canada, and Cumulus Systems Private Ltd., a development company in India, as its subsidiaries, promoting a managed security service business strategy that utilizes the experience and technology of both companies.

  • Executive Structure for Hitachi Systems TCM

With this reorganization, the group companies responsible for the security business will participate in the management of Hitachi Systems TCM to strengthen its executive structure and globally expand our managed security service business.

Hitachi Systems TCM will appoint Scott Wiebe as CEO. Scott Wiebe is the current CEO and CFO of Cumulus Systems, a world-class engineering company that has evolved performance analytics technology since 2006. In addition, Anthony Subero, current CEO of Hitachi Systems Security, which has been providing security and privacy services in North America and Europe since 1999, will be concurrently appointed as COO. Also, Motoaki Yamamura, current Vice President of Secure Brain Corporation, a Japanese company which has been providing cutting-edge technology specializing in cyber security since 2004, will be concurrently appointed as CSO.

  • Goal of the Reorganization and Future Direction

On April 1 of this year, Hitachi, Ltd. established Hitachi Digital LLC ("Hitachi Digital")*1 based in North America, an area where the digital market is growing rapidly. Hitachi Digital will take the lead in establishing and executing a digital strategy across the Hitachi Group and aims to maximize synergy with other sectors in Hitachi to accelerate the expansion of the Lumada*2 business for the entire Hitachi Group.

Under Hitachi's digital strategies, Hitachi Systems TCM will combine the technical skills of Cumulus Systems with the security technology and experience of Hitachi Systems Security to enhance the security service platform. With this enhancement, we will:

  • develop pro-active security monitoring services which detect and report cyber risks before they become threats,
  • pursue more sophisticated threat intelligence, and
  • continue conventional security monitoring services which detect threats.

By doing so, we will create new security services that can increase the value for customers and expand our business into North America and Europe. Furthermore, Hitachi Systems TCM will improve its SOC (Security Operations Center) in India as well as its ability to provide security professional services to aim to establish its status as a top global security vendor.

In addition, Hitachi Systems considers India to be a strategic area for expanding global business. Hitachi Systems TCM will work in collaboration with Hitachi Systems India Pvt Ltd ("Hitachi Systems India"), utilizing their vast experience in the Indian market, their advanced technological expertise, and the comprehensive strength of the Hitachi Group, the global technology leader, in order to deliver the expertise required to manage a range of digital ecosystems from cable to cloud and deliver advanced security services.

*1 Hitachi Digital LLC was renamed from Hitachi Global Digital Holdings LLC, expanding the role and functions of Hitachi Global Digital Holdings, a corporate organization that had previously overseen the digital business of the IT sector.

*2 Lumada is the name of Hitachi's advanced digital solutions and services for turning data into insights that drive digital transformation of social infrastructure.

Comment by Jun Taniguchi, CEO of Hitachi Digital

In North America and the rest of the global market, the demand for DX in social infrastructure fields such as energy, transportation, and industrial fields is expected to increase. Security is a very important field for us to commercialize strategic themes across the Hitachi Group and to create and provide customers with innovative value through OT x IT x Products. Hitachi Digital will strongly collaborate with the newly launched Hitachi Systems TCM to globally expand its Lumada business.

Comment by Scott Wiebe, CEO and CFO of Cumulus Systems

Cumulus Systems has continuously created value for its customers by building a world-class engineering team with a focus on performance analytics tools, software engineering, and professional services. We have applied this value to Hitachi Systems Security over the past several years by providing security engineering services and security services operation. By combining the two entities into Hitachi Systems TCM, we will continue to capitalize on the convergence of technology, knowledge, and process, and we are looking forward to providing enhanced value to our customers in North America, Europe, India, and Japan.

Comment by Anthony Subero, CEO of Hitachi Systems Security

With this reorganization, we will provide our customers high levels of availability and reliability for their critical business systems, through the adoption of proven cybersecurity, privacy, and performance analytics tools/solutions.

The true strength of this merger, however, lies in bringing together a cadre of globally experienced and professional experts, that can bring enhanced value to staff and global clients. I am indeed excited about the future!

Comment by Anuj Gupta, CEO of Hitachi Systems India

Hitachi, Ltd. has designated India as an important region in its global strategy owing to the rapid growth of the IT services industry in India. Hitachi Systems, a core company in the Hitachi Group's information and telecommunication systems business, has been actively promoting initiatives centered on Hitachi Systems India to secure its IT service business foundation and expand its business in India. Our key focus is on security and services business domains, in addition to our conventional sales of products and maintenance services. We are excited to welcome Hitachi Systems TCM's advanced security services to our portfolio. Hitachi Systems India will contribute to not only its huge customer base with the best of its services but also to the Indian government and other companies undergoing rapid growth.

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