Hitachi Asia Ltd., a regional headquarters of Hitachi, Ltd., and Hewlett-Packard
Singapore ( Sales ) Pte. Ltd. ( HP ) today announced that they will jointly launch their
computer application service provider ( ASP ) business in South East Asia on 1 June, 2000.
Through this announcement, Hitachi Asia and HP seek to improve the quality and reliability
of ASP services.
Hitachi Asia will provide software and consultation expertise from its experience as a
systems integrator and from Hitachi's knowledge as a leading global manufacturer.
HP will manage and operate its existing e-business hosting infrastructure, called e-ontap
which is driven by its industry leading mission-critical HP9000 Enterprise Servers.
Hitachi, Ltd. and Hewlett-Packard Company have been partners since 1991 for various
technology alliances.
The ASP business model allows corporate computer users to use software installed in
the provider's data center through the network, for example the Internet, and to operate
the system by way of a subscription fee payment.
With the business climate recovering in South East Asia and the anticipated increase in
the flow of goods and services across a borderless economy, innovation in business
operations and higher productivity are an urgent challenge for companies. Hitachi Asia's
ASP services instantly enable users to have a business solution at a reasonable cost
without investment in in-house software development, IT engineers and fixed assets,
allowing the customer to focus on its core business operations.
Through its accumulated knowledge, Hitachi has been able to develop various business
process software templates. This, combined with the ASP program ensures that Hitachi will
be able to implement our customers' system.
Hitachi Asia estimates that users of its ASP services can enjoy savings of between 25%
to 40% in the first three years, compared with implementing an in house system.
The ASP service is in line with Hitachi, Ltd.'s mid-term business strategy called the
"i.e. Hitachi Plan" (The "i.e." of "i.e. Hitachi Plan" stands for information electronics).
This plan aims to use the Company's wealth of knowledge and information technology (IT)
as a basis for utilizing the Internet to become a best solutions partner.
Hitachi, Ltd., Hitachi Asia's parent company, has been a player in the South East Asian
computer business through distributors since 1980.
And in 1995, Hitachi Asia, the regional headquarters, established its Open System
Solution Center ( Asia ) ( OPCA ). The center markets systems integration services of
enterprise resource planning ( ERP ) software, mainly to Japanese companies.
With its ASP service, Hitachi Asia aims to expand its service offerings as a business
solutions provider, and to non-Japanese companies as well.
Mr. Takashi Muraki, Managing Director, Hitachi Asia said, "Hitachi Asia's OPCA goes into
the ASP business, with more than five years of industry experience as an ERP system
integrator. Hitachi also has had a long history and know-how as a manufacturer.
We will contribute to higher productivity and success for our customers."
This ASP service will be hosted on HP's e-ontap, a S$10 million e-business hosting
infrastructure.
E-ontap enables companies to operate their mission-critical e-businesses in a highly
available and scalable environment.
The hosting facility speeds up time to market and reduces operational costs, while
ensuring that quality of service is assured.
Mr. Garry Duursma, *General Manager of Hewlett-Packard's Corporate Accounts Business
Unit, Asia-Pacific said, "HP is delighted to be a *solutions partner with Hitachi Asia
in this pioneering effort. Through this initiative we are also extending our
partnership with Hitachi, a valued HP global customer."
"With this partnership in the ASP arena, both companies are entering into a new phase of
collaboration in a whole new marketspace," said Mr. Duursma. With our pasttrack record,
HP is confident of leading the ASP market in this region with our leadingedge
technologies," he added.
Hitachi Asia will launch its ASP service with 3 solution offerings; 1) business
administration support for accounting, human resource and payroll, 2) core operation
support handling manufacturing and logistics, and 3) SCM support for manufacturer's
procurement & distribution. Since the business administration operation consists of
comparatively standard and structured operations, Hitachi Asia feels that this ASP
service easily fits into any existing enterprise without software customization.
For core operation support for manufacturing and logistics, package software and
templates are highly applicable. For SCM support, Hitachi Asia will introduce homegrown
software.
Furthermore, Hitachi Asia will also be expanding the ASP service menu.
Key components for application services include Hitachi's homegrown solution for
supply chain management, and other software products. Hitachi Asia is currently
selling BAAN software, is proceeding advanced discussions with BAAN to use its products
for the ASP service also. In addition, Hitachi Asia will also be in
discussion with ORACLE.
Hitachi Asia is starting this ASP service in Singapore, Malaysia and Thailand, and will
extend the offering to the Philippines, Hong Kong, Indonesia and others in a later
phase.
The initial target industry sectors are manufacturing, distribution and sales.
Hitachi Asia estimates annual sales of the ASP business solutions to be S$ 32 million
in 2003.
About Hitachi Asia Ltd.
Established in 1989, Hitachi Asia Ltd., a wholly owned subsidiary of Hitachi, Ltd.,
oversees the marketing, sales and procurement operations of Hitachi for Asia, Oceania
and the Middle East. In addition to its regional headquarters (RHQ) in Singapore,
the company has 21 other subsidiaries and offices spread across 10 Asian countries.
Hitachi Asia markets a wide variety of products including power and industrial
systems, industrial systems and components, information systems and electronic
components.
Hitachi Asia has more than 800 employees and its sales totaled more than S$5.1 billion
for the fiscal year ending 31 March 2000. For more information about Hitachi Asia,
please visit its website at http://www.hitachi.com.sg.
About HP
Hewlett-Packard Company -- a leading global provider of computing and imaging
solutions and services -- is focused on making technology and its benefits accessible
to individuals and businesses through simple appliances, useful e-services and an
Internet infrastructure that's always on.
Excluding Agilent Technologies, HP has 86,000 employees worldwide and had total
revenue from continuing operations of $42.4 billion in its 1999 fiscal year.
Information about HP and its products can be found on
the World Wide Web at http://www.hp.com.
For Business Inquiries :
Open System Solution Centre ( Asia ), Hitachi Asia Ltd.
16 Collyer Quay, Hitachi Tower #20-00, Singapore 049318
TEL +65-231-2237 FAX +65-538-9022
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